GO plc - Interim Directors’ Statement

On 23 October, GO plc published its Interim Directors’ Statement based on the unaudited management accounts of the Group up to 30 September and other financial information. GO noted that in the period up to 30 September 2013, the average revenue per user (ARPU) continued to suffer amid intense competition and regulatory changes (which are mainly adversely impacting the fixed line and mobile businesses) leading to a marginal reduction in retail revenues despite maintaining more than 500,000 client connections. Nonetheless, GO explained that the Group continues to enjoy healthy levels of revenue across all its main products with growth registered in broadband, TV and mobile connections. The Directors also noted that the various attractive value propositions have been delivering positive results and helped the Group retain significant market share.

Ongoing efforts to contain costs have mitigated the reduction in revenue allowing the Group to maintain healthy levels of profitability and cash generation. The announcement also noted that current cash holdings and banking facilities are adequate to ensure that the Group has the ability to execute its strategy in the medium term.

GO noted that it continues to execute a significant investment programme through which it is upgrading various networks and introducing new technologies. After the Group completed the rollout of a nationwide mobile network earlier this year, GO has now signed a contact with Ericsson to upgrade its fixed-line core network and reached another agreement with Alcatel Lucent to upgrade its mobile core infrastructure. These projects are complementary investments to the Fibre to the Home (FTTH) and 4G projects.

The announcement also made reference to Forthnet, which is expected to announce its Q3 results by the end of November. In the meantime, Forthnet is progressing with the Rights Issue process with the aim of raising €30 million. GO’s Directors await the release of the Forthnet prospectus to determine whether to participate in the rights issue or otherwise.