GO plc - Full-Year Results

On 20 March, GO plc published its preliminary results for the 2012 financial year.

Performance Review

During 2012, GO generated €127.2 million in revenue representing a 3.4% drop from the previous year’s figure due to price pressures from increasing competition as well as regulatory reduced mobile termination rates.

On the other hand, the Group’s cost base, excluding non-recurring items, contracted by 3.9% to €104.6 million reflecting the cost savings achieved with respect to call termination on third party networks, payroll costs and administrative expenses. These also offset the increases in expenditure related to the growth areas of the Group, namely broadband and TV.

In 2012, the Group benefitted from an €11.4 million gain relating to the property transfer with the Government of Malta. By virtue of this exchange, the Group obtained full title to a number of exchanges across Malta in lieu of a piece of land in Qawra. Meanwhile, the €5.2 million in exceptional items (relating to pension provisions and voluntary retirement schemes) reported in 2011 were not repeated during the year under review.

As a result, the Group’s operating profit amounted to €33.5 million compared to €18.4 million in 2011. However, the Directors noted that the normalised earnings before interest, tax, depreciation and amortisation (EBITDA) was practically unchanged at €51.3 million whilst normalised operating profit dropped by 6.3% to €22.2 million.

After accounting for interest costs of €2.7 million (2011: €2.8 million) as well as other immaterial items, the Group’s profit from local operations amounted to €30.2 million compared to €17.1 million in 2011.

The Group’s financials were impacted by a further €3.7 million impairment on the Group’s indirect investment in Forthnet given the latter’s further losses registered by the Greek telecommunications company. GO’s investment in Forthnet has now been completely written-off.

Overall, GO’s 2012 pre-tax profits amounted to €26.5 million compared to the €45.2 million loss in 2011. After accounting for €9.2 million in taxation, the Group’s net profit amounted to €17.3 million in contrast to the net loss of €51 million in 2011. This translates into an earnings per share of €0.171.

The balance sheet as at 31 December 2012 show shareholders’ funds of €101.6 million (+21.9%) following the profitability registered in 2012 which translates into a net asset value of €1.00 per share. Compared to net debt of €50 million, the Group’s gearing ratio stands at 49.3%.

Dividend

The Directors recommended the reinstatement of a final dividend (after skipping the dividend last year) with a payment of a final net dividend of €0.10 per share to all shareholders as at the close of trading on Tuesday 2 April. The dividend will be paid on 10 May following shareholders’ approval at the Annual General Meeting scheduled to be held on 7 May.

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GO plc – Preliminary Profit Statement for the financial year ended 31 December 2012.