GO registers €14.3m in profit in first six months of 2024

Total dividend distribution for 2024 to reach 25c per share

GO plc has published its interim financial report for the first half of 2024 showing revenue of €113.5 million which led to a consolidated profit before tax of €14.3 million for the first six months of 2024, a slight decrease from the €15.1 million reported in 2023.

The Group’s €113.5 million in revenues reflect a €6.9 million decrease compared to the same period in 2023 reflecting an anticipated reduction in hardware sales of €10.2 million, compensated by an increase in recurring service revenues of €3.3 million which resulted in a 2% uplift in the consolidated gross profit margin compared to the same period last year.

The company noted that despite the highly competitive landscape in the telecoms segment, both technologically and marketwise, the segment continued to perform in line with the previous year’s results at both GO and Cablenet.

GO plc is in fact announcing a distribution of a 5c dividend payment to its shareholders on the 30^th of August, which following previous distributions of 15 cents in February and 5 cents in May, will bring the total dividend payout for the year to an impressive 25 cents per share reaffirming GO plc as one of Malta’s highest performing listed companies in terms of shareholder returns.

As of June 2024, the consolidated total assets stood at €410.8 million representing a decrease from €458.7 million position as of 31 December 2023. During this period, the Group continued to invest in crucial areas, including network infrastructure, and broadcasting rights and in its transformation towards becoming a fully digital company.

“Over the initial six months of 2024, GO remained committed to its purpose of driving a digital Malta where no one is left behind,” said GO CEO Nikhil Patil.

“We accelerated the deployment of our FTTH network, successfully connecting over 35,000 new homes, which increased the percentage of homes passed from 78.5% at the end of 2023 to 87%. The FTTH rollout is anticipated to be completed by the end of the financial year 2024.”

Consolidated EBITDA for the first six months of 2024 amounted to €44.4 million, a slight decrease of €0.6 million or 1.3% compared to the first six months of 2023. Depreciation and amortisation increased by €0.9 million reflecting continued levels of investment in network expansion and other strategic assets across the Group while net finance costs increased by €0.6 million.

Administrative and other expenses saw a slight increase of €1.5 million, partially attributable to record-high cost-of-living adjustments and one-off payments related to voluntary retirement schemes.

The Group generated net cash flows from operating activities of €33.1 million, a slight decrease of €0.8 million compared to the first half of 2023. Net cash used in investing activities amounted to €33.9 million (2023: €33 million) including extensive investment in the expansion of fixed and mobile networks in Malta and Cyprus as well as an investment of €1.2 million for the acquisition of a 51% stake in AQS Med Limited and the funds received from the partial exit of Airalo of €1.7 million.

During the period under review, the Group repaid bank loans amounting to €8.6 million and paid dividends amounting to €22.3 million.

During the first 6 months of 2024, borrowings net of cash holdings increased by €32.1 million to reach €152.3 million. Total Equity as of 30 June 2024 stood at €86.4 million representing 21% of total assets (31 December 2023: 21.7%).