GO plc registers €9.2 million in interim 2011 period

GO said the results of both periods were negatively impacted by voluntary retirement costs and increased pension obligations. Normalised results before such items show that in 2011 the Group’s operating profit amounted to €12.4 million, an increase of 8.9% over the corresponding period last year, during which the Group registered an operating profit of €11.4 million.

The Group’s revenue amounted to €65.2 million as against €64.2 million in 2010 representing growth of 1.6%.

While GO experienced sustained growth in broadband, data and TV services which continued to compensate for the decline in traditional fixed-voice services, the intense competition in the mobile market during the first half of 2011 has led to a decline in revenue from mobile operations, even though the subscriber base continued to grow.

“Whilst revenue from mobile operations was further impacted by reduced mobile termination rates as a result of regulatory intervention, as a group such reduction in mobile termination rates had an overall positive impact. Revenue from the data centre operations and related activities amounted to €5.6 million representing growth of 14.4% over the comparable period last year.”

June 2011 also saw the launch of an IPTV service over the Group’s high-speed broadband network, offering the possibility of a wider channel suite, which also includes HD (high-definition) as well as interactivity features.

GO said it had also reached headcount levels below 1,000. “These reductions, coupled with ongoing improvements in the Group’s business processes, are helping to contain costs. It is inevitable that the Group continues to pursue restructuring of its operations in order to align its cost structures and operations to reflect market conditions.

During the period under review, the Group advanced funds to the jointly-controlled entity amounting to €0.3 million, while the jointly-controlled entity repaid loans advanced amounting to €0.7 million. In addition, the Group acquired services amounting to €0.5 million from entities ultimately controlled by Dubai Holdings LLC, the ultimate parent company. Dividends paid to the parent company amounted to €3.0 million.