GO plc - 2009 Interim Results

On 31 August, GO plc published its 2009 interim report. The Group generated €61.1 million in revenues representing a 4.8% decline from the comparable period last year despite an increase in customer connections. GO recorded an operating loss of €1.14 million (2008: operating profit of €1.04 million) after accounting for one-off items namely, voluntary retirement costs and an impairment loss on trade receivables which offset the decrease in the provision for pensions. The Directors pointed out that if these items are excluded the Group would have registered an operating profit of €6.89 million.

Moreover, after deducting net finance costs, together with the share of loss in Forgendo Limited (€3.73 million) and taxation, GO registered a net loss of €5.4 million compared to the net loss of €4.4 million incurrred in the first half of 2008.

In the announcement the Directors explained the operations of Forthnet S.A., in which it increased its shareholding, and the recently acquired Bell Med Group. Furthermore, the Directors explained that in line with the Group’s right-sizing and right-skill strategy, GO has reduced its headcount by 151 personnel to 1,262 employees with other reductions expected to materialise during the second half of the year. The headcount reduction during the period under review should result in cost savings for the Group in the latter part of the year and periods thereafter.

In conclusion, the Directors stated that an upgrade of its networks is underway to enable the Group to launch new services and to maintain its leading position in voice and data services. Moreover the Group’s success in retaining and growing its customer base and the benefits of restructuring should auger well for improved results in the coming years particularly as the current economic trends improve.

The Directors did not recommend the payment of a dividend.

Download a copy of GO plc 2009 Interim Results.

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