GO plc - Interim Directors’ Statement

Wednesday, October 21st, 2015

On 21 October, GO plc issued its Interim Directors’ Statement updating the market on its performance up to September 2015.

The Directors explained that the positive trends which were registered in the first half of the year continued throughout the third quarter and the Group is anticipating closing the current financial year with increased profitability when compared with the corresponding period last year when pre-tax profits amounted to €20.3 million.

Despite the challenging competitive environment, the Directors stated that the Company continues to maintain market share, stable revenues, healthy levels of profitability and cash generation. This successful performance in enabling GO to maintain its targeted investments in technology (including Fibre-to-the-Home (FTTH) and 4G), systems, software and processes in order to continue enhancing customer experience and achieve greater operational efficiency. The Group has also recently embarked upon a transformation strategy aimed at revamping its product portfolio, simplifying its networks and further improving service delivery and support over the next few years.

With regards to GO’s 25% investment in the Cypriot telecom company ‘Cablenet Communication Systems Limited’ (“Cablenet”), the Directors explained that the operating performance of Cablenet is in line with expectations as it continues to grow its subscriber base and improve profitability. The Directors noted the improved situation of the Cypriot economy and they expect full growth to return in 2016 which augurs well for the future of this investment. GO also reiterated that, at its sole discretion, it may acquire an additional 26% shareholding in Cablenet.

On the other hand, with regards to the Group’s investment in Greece, GO plc and its immediate parent, Emirates International Telecommunications (Malta) Limited (EITML), are continuing to monitor developments closely and will evaluate any potential binding offers for Forthnet accordingly.

Further to the announcement made by EITML on 23 July 2015 regarding its intention to sell its 60% shareholding in GO plc, the Board of Directors is currently evaluating how best to pursue this sale with a view of maximizing value for all shareholders of GO. As part of this process an Extraordinary General Meeting (EGM) is scheduled for 29 October. Further details on the EGM is available here.

GO also made reference to the spin-off of the property division by way of a distribution of all the shares in Malta Properties Company plc to GO shareholders on a 1 for 1 basis, equivalent to an interim dividend of €0.3313 per share (gross €0.5097 per share).

In conclusion, the Board of Directors expressed satisfaction that the Group is maintaining the momentum required for it to implement its strategy of protecting profitability from core telecommunication operations whilst also pursuing new growth opportunities, both locally and internationally, in the interest of shareholder value.

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