GO registers 12.9% increase in H1 revenue over 2021

During the six-month period ending 30 June 2022, GO p.l.c. generated revenue amounting to €106 million, an increase of €12.1 million or 12.9% compared to the first half of 2021.

During the period under review, local telecom services increased by €7.3 million closing at €63.7 million. This resulted mainly from a growth in GO’s fixed broadband and mobile customer base subscribers, a partial recovery of roaming revenue and other international wholesale business, and comparatively higher levels of supply and maintenance of hardware and telecoms equipment.

GO is a publicly traded entity on the Malta Stock Exchange and the parent company of GO Group. The group provides data centre and ancillary services in Malta through its majority stake in BMIT Technologies p.l.c., as well as fully-fletched fixed and mobile electronic telecommunication services in Cyprus through its majority stake in Cablenet Communications Systems p.l.c.

Data centre operations remained challenging particularly due to increasing technology-driven competitive pressures and global supply chain issues resulting in customer project delays. Notwithstanding these challenges, BMIT registered gross revenue of €12.6 million, implying a marginal decline of just over 1% compared to the first half of 2021.

Cablenet’s revenue amounted to €30.1 million, an increase of €4.5 million or 17.4% over the same period last year. This revenue growth reflects subscriber gains from higher market share and the expansion of network footprint.

Group cost of sales amounted to €66.3 million (2021: €59.2 million). The increase of €7.1 million or 11.9% over 2021 is largely attributable to higher cost of goods sold as a result of the significantly higher sales of hardware and other telecoms equipment, new network support agreements following the launch of the 5G mobile network and the new operational costs of the PEACE submarine cable. Despite higher cost of sales, the Group registered a 14% increase in gross profit and 1% increase in the gross profit margin when compared to the first half of 2021.

Administrative expenses remained close to the levels of the first half of 2021, and amounted to €26.1 million (2021: €25.5 million). The increase includes one-off staff compensation and legal expenses of around €0.5 million incurred by Cablenet.

Consolidated EBITDA for the first six months of 2022 amounted to €41.2 million (2021: €34.8 million). Depreciation and amortisation increased by €1.3 million reflecting higher levels of investment in network expansion and other strategic assets across the Group while net finance costs increased by €0.9 million. Consolidated profit before tax for the first six months of 2022 amounted to €12.1 million (2021: €7.9 million).

The Group generated net cash flows from operating activities of €38.2 million, an increase of 40% over 2021, enabling the Group to fund higher levels of investments which amounted to €35.4 million (2021: €29.9 million).

Consolidated total assets as at 30 June 2022 amounted to €368.1 million (31 December 2021: €368.6 million). In May 2022, Cablenet capitalised its 4G and 5G spectrum frequencies resulting in an increase in Right-of-Use Assets of €15.9 million and a corresponding increase in Right-of-Use Liabilities of €10.6 million.

During the first six months of 2022, borrowings net of cash holdings increased by €16.7 million to reach €104.5 million. Total Equity as at 30 June 2022 stood at €104.6 million representing 28.4% of total assets (31 December 2021: 29.8%).

During the period under review, GO paid dividends amounting to €6 million to its parent company and effected payments amounting to €1.3 million for lease of properties, to entities ultimately controlled by Société Nationale des Télécommunications (Tunisie Telecom), the intermediate parent company.

Dividends

At the last Annual General Meeting of GO p.l.c., a final net dividend of €0.09 per share in respect of the year ended 31 December 2021 was approved and was paid to the shareholders on 27 May 2022.

The Board resolved to distribute an interim net dividend of €0.06 per share which will be paid to shareholders on 9 September 2022.