GO registers revenue increase in first six months of 2021

Pre-tax profit of €7.9 million is slight decline over 2020

Telecoms company GO has registered a solid performance despite the challenging economic climate brought about by the global pandemic, and which persisted throughout the first six months of the year.

Group revenue for the first six months of the year amounted to €93.9 million, an increase of €2.3 million, or 2.5% over the comparative period in 2020.

The major contributors came from subsidiary BMIT, a data centre operations company, which registered an increase in revenues of €1.1 million on the back of a higher demand for data centre, cloud, and managed services; while Cablenet registered revenue growth of 10.5% compared to the same period in 2020, reflecting subscriber gains, expansion of its fixed network footprint in Cyprus, and new mobile services.

Conversely, international travel restrictions contributed to a decrease in local telecoms revenue, particularly through roaming and other international wholesale revenues.

Cost of sales and administrative expenses amounted to €84.7 million, a net increase of €3 million over 2020 and largely attributable to direct costs and ancillary administrative expenses in connection with Cablenet’s new mobile service.  

Consolidated EBITDA for the first 6 months of 2021 amounted to €34.8 million (2020: €35.5 million). Depreciation and amortisation amounting to €24.8 million remained on similar levels to 2020, while consolidated Finance Costs increased by €0.6 million. The Group’s pre-tax profit for the first 6 months of 2021 amounted to €7.9 million, a slight decline over 2020. 

An interim dividend of €0.07 per share was approved.

“The company’s efforts since the onset of the pandemic to ensure that everyone remained connected are yielding the desired results and that despite the persisting uncertainty in the economic climate, the group continued to grow in a sustainable manner, expanding its market share and service offering,” said GO Chairman Samir Saied.

“This commitment did not go unnoticed among institutional investors and the general public, with a €60 million bond issue by GO earlier this year attracting more than 6,500 applications worth €146 million.”

Chief Executive Officer Nikhil Patil said the overwhelming demand for the bond, which was oversubscribed by nearly three times, was testament to the level of confidence and trust that GO enjoys amongst the local investor community.

“GO has an excellent track record of creating value and generating sustainable returns for its shareholders and financial stakeholders. In fact, notwithstanding the unprecedented challenges brought about by the pandemic, we continued to work hard together as one team to deliver strong financial results.

“GO remains committed in serving the needs of Malta and Cyprus, as they gradually enter a new phase of the COVID-19 pandemic that will allow society more openness and mobility, yet with recurring and continuing precautions in place.”

Patil said GO will continue to invest further in its digitalisation process and it digital infrastructure to ensure fast, reliable and resilient connectivity. These include the further extension of the True Fibre network, 5G roll-out and the continuation of works on the La Valette PEACE cable.