Go has increased its operating profits before non-recurring items by 13.3 per cent to €11.8 million in the six month period ended June 30.
The group’s earnings before interest, tax, depreciation and amortisation (EBITDA) and before non-recurring costs, amounted to €24.3 million, a marginal increase over the comparative period.
Group revenues amounted to €60.8 million (2013: €60.5 million).
The company also outperformed international trends and managed to grow overall retail revenue across its main product range. It continued to grow its client base, with over 500,000 customer connections, across its main retail products.
The positive performance of retail revenue compensated for the negative impact resulting from the continued reduction in wholesale rates, particularly mobile termination rates and roaming charges mandated by the Malta Communications Authority and the EU Commission, respectively.
Cost of sales and administration, excluding costs of an unusual nature, size or incidence, amounted to €49.7 million, a decrease of €0.9 million over the comparative period. The group successfully pursued cost reductions in most areas, though it experienced some increased costs in certain areas directly related to its sales activity.
It increased its operating profit for the period under review to €9.7 million (2013: €9.4 million). Group profit before tax increased by 3.1 per cent, to €8.5 million.
Cash generation from operations remained healthy and amounted to €18.4 million (2013: €17.2 million). Group borrowings net of cash holdings amounted to €47.7 million as at June 30, an increase in net debt of €5.8 million over December 2013. This increase was a result of the payment of a net dividend of €0.07 per share and a loan of €6 million extended by Go to Forgendo.
Chief executive Yiannos Michaelides said four key thrusts underpinned Go’s strategy; defending its position using its multi-play advantage, growing by focusing on new areas, enhancing operational efficiency and exploring new opportunities beyond the traditional core.
“It is clear that the Group’s strategy is effective and we shall continue to pursue it vigorously,’’ he said.