GO plc - Updated Financial Analysis Summary

On 26 May 2022, GO plc published an updated Financial Analysis Summary. The following are the main highlights of the expected financial performance and position of GO (relating to the Group’s telecoms operations in Malta) in 2022:

• Revenues are expected to increase by 4.9% to €123.5 million largely reflecting stronger level of hardware sales.
• EBITDA is anticipated to grow by 0.8% to €48.2 million as the 7.8% increase in direct costs and administrative expenses to €75.2 million (2021: €69.8 million) is expected to be outweighed by the higher increase in revenues. The EBITDA margin is forecasted to ease to 39.1% from 40.7% in 2021.
• Depreciation costs are expected to increase by 4.2% to €30.1 million whilst net finance costs are forecasted to remain virtually unchanged at €3.4 million.
• Overall, GO is forecasting a net profit of €12.2 million compared to €13.6 million in 2021.
• The forecasted Statement of Financial Position as at 31 December 2022 shows that total debt is anticipated to drop by 7.3% to €103.7 million when including €26.7 million in lease liabilities. However, net debt is anticipated to increase by €14.6 million to €96.9 million (31 December 2021: €82.3 million) reflecting the forecasted considerable drop in cash reserves to €6.8 million compared to €29.5 million as at the end of 2021.
• The gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to ease to 49.3% (31 December 2021: 50.3%) whilst the net debt to EBITDA multiple is forecasted to increase to 2 times compared to 1.7 times in the 2021 financial year. On the other hand, the interest cover is expected to remain virtually unchanged at just over 14 times.