GO plc - Interim Directors’ Statement

On 6 May, GO plc issued an Interim Directors’ Statement updating the market on its performance during the first quarter of 2016 and with regards to the ongoing sale process.

Performance Update – Q1 2016

During the first three months of 2016, GO’s telecommunications business continued to achieve growth in revenue and maintain healthy levels of profitability. Furthermore, the Group’s performance was further boosted by additional contribution from the increased shareholding in the Cyprus-based Cablenet Communications Systems Limited to 51% as well as the acquisition of a 51% stake in Kinetix IT Solutions Limited, a local ICT service provider.

The Directors also noted that the Group continued to invest in the deployment of fibre technology which is currently available to over 30,000 households. Additionally, GO is also continuing its investment in Malta’s only 100% fibre connected 4G network which will be completed by the end of summer to further enhance the Group’s 4G services which were launched last December.

Given the aforementioned investments, other initiatives undertaken by GO in recent years and the on-going efforts to improve customer experience, the GO Group managed to further grow its customer base, increase sales of bundled services as well as upsell to clients in broadband, IPTV and mobile. All this contributed to an increase in the Average Revenue Per User (ARPU) and revenue from the Group’s retail service offerings. It is also noteworthy to highlight that, in spite of intense competition and the fixed to mobile substitution, GO managed to stabilize its revenues from the traditional fixed voice services.

The announcement also stated that Cablenet (based in Cyprus) continued to achieve growth in both revenue and profitability during the first quarter of 2016 in line with the continued growth in the company’s customer base.

Update on Sale Process

During the Extraordinary General Meeting held on 29 October 2015, shareholders authorised the Board of Directors to seek bids for the entire issued share capital of GO plc, to take all steps necessary to expedite such bids and to make disclosures, including disclosures of unpublished price sensitive information, which the Directors may consider necessary for any bona fide bidders to complete their respective bids. In this regard, the Directors noted that a number of bidders were granted access to the data room in February 2016 and subsequently received a number of binding offers. These are currently being evaluated and a preferred bidder will be selected later this month.