Maltacom chairman rules out redundancies
As the Maltacom Group seeks to invest in innovation in
the coming year it will also be looking closely at its bottom line in
a bid to have a leaner operation. But newly appointed Chairman Sonny
Portelli, yesterday ruled out that a leaner company meant redundancies.
"Like any business we have to look at our cost base. We have to
be efficient and lean. Lean means how we are spending our money and
what were getting in return for it. It does not mean in any way
that we are going to make people redundant. My board and I are not considering
redundancies or early retirement schemes," Mr Portelli told The
Malta Financial and Business Times.
He was interviewed yesterday just after the presentation of the companys
results for the first three quarters of 2003 to shareholders and stockbrokers.
"The cost cutting we are looking at is one derived from good management
by reducing waste, making sure people are delivering, increasing seriousness
and focus," Mr Portelli insisted.
The interim results saw Maltacom register impressive increase
in revenue from cellular traffic and internet-related services, increases
of 19.8 per cent and 24.8 per cent respectively over the same period
However, the company saw a major drop of 23.8 per cent in international
outgoing fixed line telephony revenue. The major cause for this drop
was the proliferation of various operators offering overseas phone calls
via the internet.
Asked by The Malta Financial and Business Times whether Voice over Internet
Protocol (VoIP) had caught the company by surprise, Mr Portelli said:
"The regulator had asked us to take certain measures to ensure
that there was a level playing field. But this is the nature of the
sector. It is dynamic, ever-changing. The future is internet protocol
telephony. Fixed line telephony is on the way out. You cannot resist
change and now we have come out with our own VOIP product and will be
fighting for our market share."
See full interview with Sonny Portelli on page 11