GO plc - Interim Results

On 7 August 2023, GO plc published its interim results covering the six-month period ending 30 June 2023.

Revenues surged by 13.7% to a record (at the interim stage) of €120.5 million (H1 2022: €106.0 million), reflecting growth in the local telecom services as well as its subsidiaries BMIT Technologies plc and Cablenet Communication Systems plc. Income from local telecom services increased by 8.6% driven by higher level of business within fixed broadband and mobile subscriptions, roaming and other international wholesale business, and comparatively higher levels of supply and maintenance of hardware and telecoms equipment.  BMIT’s growth in income of 17.3% was driven by new business in hybrid IT, cloud, and managed services. Meanwhile, Cablenet’s revenue surged by 24.1% reflecting subscriber gains from higher market share and the expansion of its network footprint.

On the expenditure side, total operating costs (net of other income) increased by 12% to €101.9 million reflecting the higher cost of sales due to the sale of mobile devices, telecoms equipment and specialised technical solutions for enterprises. Notably, administrative and other related expenses remained virtually unchanged when compared to the same period in 2022.

Operating profit surged by 23.7% to €18.6 million (H1 2022: €15.1 million). Excluding depreciation and amortisation, EBITDA increased by 10.2% to €45.3 million (H1 2022: €41.2 million), however the EBITDA margin eased to 37.6% compared to 38.8% in the first half of 2022, reflecting the increase in hardware sales which attracts lower margins.

After accounting for net finance costs of €3.56 million, a tax charge of €6.1 million, as well as non-controlling interests of €0.26 million, the net profit for the period attributable to shareholders amounted to €8.71 million (H1 2022: €6.44 million) which translates into an annualised return on average equity of 18.6% (H1 2022: 13.1%).

The Statement of Financial Position as at 30 June 2023, when compared to the position as at 31 December 2022 shows that total assets increased by 2% (or €8.1 million) to €404.3 million, mostly consisting of property plant and equipment of €173 million, intangible assets of €87 million and trade and other receivables of €57.3 million. Total liabilities increased by 3.5% (or €10.3 million) to €307.5 million, principally composed of borrowings of €144.4 million, lease liabilities of €50.2 million and trade and other payables of €93.4 million. Shareholders’ funds remained virtually unchanged at €90.3 million.

Dividend

On 18 July 2023, the Board of Directors of GO plc elected to distribute a net interim dividend of €0.07 per share (H1 2022: €0.06 per share) which translates into a payout ratio of 81.4%. The dividend was paid on 7 August 2023.