Maltacoms interim financial
statement bolstered by Vodafone sale
- earnings per share nearly double to 12c3
By a staff reporter
National telecom provider Maltacoms financial statement for the
first three quarters of the year, which was released yesterday by the
company, shows surging profit levels for the January-September period
at close to double those of 2002.
Profit for the period, before tax, amounted to Lm19.381 million, as
compared to Lm9.842 million for the same period in 2002. In fact, results
for the first nine months of the year were also well over those for
the whole of 2002, which had reached Lm13.5 million).
The rise, of Lm9.539 million, is staggering but was almost
wholly attributable to Maltacoms sale of Vodafone Malta shares
this year. The share sale, less related professional fees, had amounted
to Lm9.866 million. Excluding the Vodafone sale, Maltacom had actually
realised a loss for the period of close to Lm325,000.
Maltacoms earnings per share skyrocketed to 12c3, as opposed to
6c4 for the first nine months of 2002 and 9c5 for the whole of last
year. The telephony carriers profits represent an annualised return
of 35.4 per cent on the average shareholders funds and 19.8 per
cent on the average total assets employed. No interim dividend is being
Over the period shareholders funds amounted to Lm77.3 million
up from Lm65.5 million for the first nine months of 2002 and
from Lm68.7 million for the whole of 2002. As such shareholders
funds finance 57.5 per cent of the Groups total assets. The Groups
net asset value per share stands at Lm0.763.
Turnover for the period reached Lm41.827 million, up from Lm40.454 million
for the same period last year.
Maltacoms gross margin for the period amounted to Lm20.7 million,
equivalent to 49.6 per cent of turnover. The Groups net operating
costs were cut by some Lm10 million from the same period last year and
amounted to Lm21.7 million. Operating costs for the first nine months
of the year mainly represented the provision for VAT on international
incoming interconnection revenue, interconnection charges by other operators
labour and depreciation charges.
With an effective tax rate of 35.9 per cent, the Group paid tax expenses
of Lm7 million during the period.
Maltacoms balance sheet as at 30 September 2002 shows total assets
at Lm134.5 million, up nearly Lm10 million from the same period last
year. Loans by financial institutions amounted to Lm18.1 million and
finance 23 per cent of the Groups fixed assets.
Maltacoms debtors, net of provisions for doubtful debts, totalled
Lm34.1 million - 70.3 per cent of which were in respect for services
and goods provided by the company. These debts have been cut from last
years level, which reached Lm35.9 million for the same period
in 2002. However, the Groups trade and capital debtors amounted
to Lm16 million, up from the Lm14.9 million registered for the first
nine months of 2002.
Trading was halted on the Malta Stock Exchange yesterday due to technical
problems, so the markets reaction to Maltacoms news is still
to be gauged.