GO issued its Interim Directors’ Statement on 9 May in which it stated that the Group’s financial results during the first quarter of 2008 are “in line with its expectations and at levels similar to those registered for the same period in 2007”. GO reported that the Group increased its overall client base by 1.2% due to continued growth in the broadband, television and mobile sectors. During the first quarter of the year the Directors reported that the Group continued to pursue controls over its operating costs and as a result profitability has been maintained at the 2007 levels.
In the Interim Statement details were given of the recent investment in ForthNet and the subsequent acquisition of pay-TV operator NetMed which will require further investment by the Group later during the year. The Directors announced that the additional investment in ForthNet to finance the acquisition is expected to be made through bank borrowings which will leverage the Group within acceptable levels.
The Directors noted that “notwithstanding the investments during the period, the Group’s balance sheet remains strong, and is driven by continued healthy cash generation from operations”. Moreover the Directors stated that the investment in ForthNet “provides GO’s shareholders with an excellent opportunity for growth in the medium term”.