The pre-tax profit of communications company GO rose 53 per cent to €13 million in the first half of the year, according to new financial results.
The company also saw its operating profit increase by €4 million to €13.7 million, when compared to the same period in 2014.
This improvement in profitability was achieved thanks to stable revenues of €60.7 million and improved cost management.
During the first half of the year, GO continued to experience growth in a number of areas, particularly mobile services and data centre business.
Retail revenues were positive, based largely on the continuing strong take up of Limitless mobile plans and Limitless Homepack.
The client base stands at more than 500,000 connections.
GO will later this year launch 4G and continue to invest in fibre-to-the-home, further enhancing its position as the leading quadruple player in Malta
There was a decline in wholesale revenues as a direct consequence of regulatory decisions. Revenues from traditional fixed-voice services also continued to decline.
During the first six months of 2015, voluntary retirement costs and pension obligations affected the cost of sales and administration – but at €396,000 were considerably less than the €2.1 million spent in the previous year.
In the explanatory notes accompanying the financial statement, GO said it estimated that it still had €6.6 million to pay to former cable and wireless employees, an issue dating back to 1975.
GO was forced to set up a pension scheme by a court judgment in 2009, but it is also offering a one-time lump sum settlement in lieu.
The group paid out a net dividend of 7c per share relating to the year ended December 31.
No interim dividend was announced, with the directors saying they preferred to base it on the full year results.
The directors’ report makes no reference to the surprise announcement a few weeks ago by its majority shareholder, Emirates International Telecommunications, a subsidiary of Dubai Holdings, that it wants to sell its shares.
The announcement was made just one day after an extraordinary general meeting.
This was only mentioned in the company announcement’s notes about events following the reporting period, which also pointed out that the EGM approved the distribution to GO’s owners of €53.5 million in property, borrowings of €16 million and deferred tax liabilities of €4.9 million.
Yiannos Michaelides, CEO at GO plc, said: “GO will later this year launch 4G and continue to invest in fibre-to-the-home, further enhancing its position as the leading quadruple player in Malta. GO will also continue to invest in its leading data centre business.”