GO sees pre-tax profit fall 8.34% in 2020, revenue up 4.2% over 2019

GO p.l.c. recorded €20.9 million in profit before tax in 2020, down from €22.8 million in 2019, resulting in earnings per share of €0.133 (2019: €0.115).

The group generated revenue of €185.2 million in 2020, an increase of 4.2% over the €177.8 million generated in 2019.

In Malta, the demand for fixed telecommunication services continued to increase during the pandemic with more people upgrading to broadband services with higher speeds.

The latest quarterly review report published by the Malta Communications showed GO achieved the highest net increase in broadband with 58.2% of total market growth.

GO also established itself as the market leader in mobile communication with a 38.26% of the total market.

GO’s TrueFibre rollout continued in 2020, with an additional 25,000 homes connected to the latest fibre technology, despite the physical restrictions. During the 2020, GO welcomed an additional 5,300 broadband customers and close to 10,000 mobile customers.

GO’s growth in revenue compensated in part for a significant reduction roaming and other international wholesale revenues which were negatively impacted by international travel restrictions imposed by Malta and other countries to mitigate the spread of COVID-19.

Group earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) amounted to €72.1 million, down 1.5% from €73.2 million in 2019. Group operating profit amounted to €21.3 million, down from €25.8 million in 2019.

In Q4 2020, GO realised a gain on investment of €3.1 million from the sale of its shareholding in Forthnet S.A.

Based on this performance, GO’s Board is recommending a dividend of €0.16 per share.

Chairman Samir Saied said that the true strength of a company lies in its ability to adapt, whilst remaining focused on its long-term goals.

“This past year has tested our vision and commitment, but it has also been a testament to our strength as a company and as a team, in our obsession about our customers and dedicatiob to investors,” he said. “We shall continue to be themain drivers of a true digital Malta, where no one is left behind.”

At the Group level, bank loan repayments in 2020 amounted to €20 million, against which €16.6 million were drawn down from unutilised bank loan facilities.

At subsidiary level, Cablenet successfully issued a €40 million 10-year unsecured bond on the Malta Stock Exchange. Total dividends paid out to shareholders by the Group amounted to the €12.2 million.

The Group’s cash and cash equivalents as at year end amounted to €25.2 million, an increase of €16.5 million compared to year end 2019.