GO plc - Interim Results

On 9 August 2022, GO plc published its interim results covering the six-month period ended 30 June 2022.

Revenues surged by nearly 13% to a record (at interim stage) of just under €106 million reflecting the strong growth in telecom business in Malta and Cyprus whilst the data centre operations posted a marginal decline in income amid increasing technology-driven competitive pressures and global supply chain issues resulting in customer project delays. Elsewhere, GO explained that its telecom business in Malta was boosted by the growth in fixed broadband and mobile customer base subscribers, a partial recovery of roaming revenue and other international wholesale business, as well as higher levels of supply and maintenance of hardware and telecoms equipment. Meanwhile in Cyprus, Cablenet’s revenue increased by 17.4% to €30.1 million reflecting subscriber gains from higher market share and the expansion of network footprint.

On the expenditure side, total operating costs (net of other income) increased by 8.4% to €90.9 million reflecting the higher volume of business, one-off staff compensation, as well as higher levels of investment in network expansion and other strategic assets. However, given the stronger increase in revenues than costs, operating profit climbed to €15.1 million compared to €10 million in H1 2021. Excluding depreciation and amortisation charges, EBITDA grew by 18.2% to €41.2 million (H1 2021: €34.8 million) whilst the EBITDA margin improved to 38.8% compared to 37.1% in the first half of 2021.

After accounting for net finance costs of €2.97 million (H1 2021: €2.1 million), a tax charge of €6.1 million, as well as non-controlling interests, GO reported a net profit of €6.44 million which, in turn, translates into an annualised return on average equity of 13.1% (H1 2021: 7.2%).

The Statement of Financial Position as at 30 June 2022, when compared to the corresponding figures as at 31 December 2021, shows that net assets contracted by 4.8% to €104.6 million. Total assets remained relatively unchanged at €368.1 million whilst total liabilities increased by 1.8% to €263.5 million.

Dividend

The Board of Directors of GO elected to distribute a net interim dividend of €0.06 per share (H1 2021: €0.07 per share) which, in turn, translates into a payout ratio of 94.3%. The dividend is payable on 9 September 2022 to all shareholders as at close of trading on 24 August 2022.