Malta's quad-play telecoms provider Go plc announced its financial results for the year ended December 31, 2007. The group maintained both its turnover and profit levels. Last year's revenue amounted to €131.8 million (Lm56.6 million) which is above 2006 turnover which stood at Lm55.4 million (€129 million). The group's profit before tax is €27.7 million (Lm11.9 million) (in 2006: €27.9 million; Lm12 million).
This profitability represents a return of 14.1 per cent (2006: 14.4 per cent) of the average shareholders' funds and of 10.4 per cent (2006: 10.8 per cent) of the average total assets employed.
The gross margin for the year amounted to €51.9 million (Lm22.3 million) (2006: Lm25.6 million), equivalent to 39.3 per cent (2006: 46.1 per cent) of total revenues. Net operating costs excluding voluntary retirement costs and VAT claim refundable amounted to €108.1 million (Lm46.4 million) (2006: Lm40.7 million) and mainly represent interconnection charges with other operators, labour costs and depreciation. The tax expense for the year amounted to Lm4.7 million or €10.9 million (2006: Lm3.9 million).
Earnings per share for 2007 amounted to €0.165 (7c1) (2006: 8c). The board of directors is recommending the payment of a final dividend of €0.11c65 equivalent to Lm0.05c (2006: Lm0.05c0) net of tax per share for the approval of the shareholders at the next annual general meeting to be held on April 11. The dividend will be payable on April 16. This net dividend will be payable to shareholders who will be on the register as at March 14.
Go chairman Sonny Portelli said: "In 2007, Go experienced strong growth in broadband, mobile and digital television services, which are making up for the decline in revenues from traditional fixed line services which continued in the year.
"Last year Go managed to maintain its revenues, and actually grow them, in the face of intense competition and extensive regulation of the core services. We also maintained group profitability. Moreover, the continued trend of significant cash generation and strong balance sheet was maintained."
Mr Portelli said that new opportunities, such as Smart City, will mean that Go will be entering new areas of business as well as consolidating and growing existing ones.
"With the launch of our second submarine cable linked to Interoute, we have positioned ourselves as the local telecoms provider which has the best international connectivity solutions. Moreover, with the announcement last month of the acquisition of a 22 per cent in one of Greece's major broadband providers, Forthnet, Go and its major shareholder - Emirates International Telecommunications - have entered into a new market and hence guaranteed new revenue streams and more opportunities for future growth," he explained.
Go chief executive officer David Kay said: "2007 will be remembered as the year where we actively entered the TV market, so our vision of becoming Malta's first quadruple-play telecoms company materialised. In February 2007, we officially acquired Multiplus Ltd and immediately integrated its operations into those of the fixed line business. Our multi-million euro investment in both TV content as well as the transmission and head-end technologies has resulted in more than the doubling of our customer base within a matter of a year. As at the beginning of 2008, we have close to 25,000 Go Plus TV customers, and the numbers are growing day by day," Mr Kay said.
Mr Kay added that in the broadband sector Go continued to increase its market share and revenues, while in mobile sector the company has acquired high-spending post-paid customers and maintained its share of the market. Revenues from Go Mobile remain a key contributing factor to the group's profitability, despite last summer's introduction of the new, reduced roaming rates, as imposed by the EU.