GO P.L.C. COMPANY ANNOUNCEMENT
The following is a Company Announcement issued by GO p.l.c. ("the Company") pursuant to the Capital Markets Rules as issued by the Malta Financial Services Authority in accordance with the provisions of the Financial Markets Act (Chapter 345 of the Laws of Malta) as they may be amended from time to time.
Quote
Group Interim Unaudited Financial Statements
In a meeting held earlier today, the Board of Directors of the Company approved the attached Group Interim Unaudited Financial Statements for the six-month period ended 30 June 2023.
The Board of Directors has also authorised the publication of the same Financial Statements which will be available for viewing on the Company's website at:
https://prodcms.go.com.mt/wp-content/uploads/2023/08/GO-Interim-FS-30-Jun- 2023.pdf
Unquote
Dr. Francis Galea Salomone LL.D.
Company Secretary
7 August 2023
GO plc, Fra Diego Street, Marsa, MRS 1501 Malta PO Box 40, Marsa MRS 1001 t. +356 2124 6200 e. customercare@go.com.mt
Company Registration Number: C22334 VAT Number: MT 12826209 go.com.mt
LTRH - Apr 15 - 317
GO p.l.c.
Condensed Consolidated Interim Financial Statements
For the Period 1 January 2023 to 30 June 2023
Company Registration Number: C 22334
GO p.l.c.
Condensed Consolidated Interim Financial Statements
For the period 1 January 2023 to 30 June 2023
Contents | |
Pages | |
Directors' Report pursuant to Capital Markets Rules 5.75.2 | 1 - 2 |
Condensed Consolidated Interim Financial Statements: | |
Condensed Consolidated Interim Statement of Financial Position | 3 - 4 |
Condensed Consolidated Interim Income Statement | 5 |
Condensed Consolidated Interim Statement of Comprehensive Income | 6 |
Condensed Consolidated Interim Statement of Changes in Equity | 7 - 8 |
Condensed Consolidated Interim Statement of Cash Flows | 9 - 10 |
Notes to the Condensed Consolidated Interim Financial Statements | 11 - 22 |
Statement pursuant to Capital Markets Rules 5.75.3 | 23 |
Independent Auditor's Report on Review of Condensed Consolidated | |
Interim Financial Statements |
GO p.l.c.
Directors' Report pursuant to Capital Markets Rules 5.75.2
For the period 1 January 2023 to 30 June 2023
This Half-Yearly Report is being published in terms of Chapter 5 of the Capital Markets Rules issued by the Malta Financial Services Authority and the Prevention of Financial Markets Abuse Act, 2005. The Half-Yearly Report comprises the reviewed (not audited) condensed consolidated interim financial statements for the six months ended 30 June 2023 prepared in accordance with International Financial Reporting Standards adopted for use in the EU for interim financial statements (International Accounting Standard 34, "Interim Financial Reporting"). The condensed consolidated interim financial statements have been reviewed in accordance with the requirements of ISRE 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". The comparative statement of financial position has been extracted from the audited financial statements for the year ended 31 December 2022.
Principal activities
GO p.l.c. ("GO") is a leading electronic communications services provider in Malta offering fixed and mobile telecommunications services, TV services, and high-speed broadband and other digital connectivity services.
GO is a publicly traded entity on the Malta Stock Exchange and the parent company of GO Group ("the Group"). The Group provides data centre and ancillary services in Malta through its majority stake in BMIT Technologies p.l.c. ("BMIT"), as well as fully fletched fixed and mobile electronic telecommunication services in Cyprus through its majority stake in Cablenet Communications Systems p.l.c. ("Cablenet").
Review of financial performance
During the six-month period ending 30 June 2023, the Group generated total revenue amounting to €120.5 million, an increase of €14.5 million or 13.7% compared to the first half of 2022. Revenue from local telecom services registered an increase of €5.5 million (8.6%) driven by growth in GO's fixed broadband and mobile subscriptions, growth in roaming and other international wholesale business, and comparatively higher levels of supply and maintenance of hardware and telecoms equipment.
BMIT's focus on hybrid IT, cloud, and managed services contributed to attracting new business in these areas. This enabled the Company to register revenue of €14.8 million, €2.2 million (17.3%) higher compared to the first six months of 2022. However, despite the revenue growth, profit levels did not rise at an equivalent rate. This is attributable to the lower profit margins associated with cloud and managed services compared to traditional data centre services.
Cablenet's revenue amounted to €37.3 million, an increase of €7.2 million or 24.1% over the same period last year. This revenue growth reflects subscriber gains from higher market share and the expansion of the Company's network footprint.
During the first half of 2023, the Group cost of sales amounted to €78.2 million (2022: €66.3 million). The increase of €11.9 million or 17.9% over 2022 was mainly driven by higher cost of goods sold associated with the sale of mobile devices, telecoms equipment and specialised technical solutions for enterprises, reflecting the increase in turnover in these areas. Gross Profit increased 6.6% to €42.3 million (2022: €39.7 million). Gross Margin reduced slightly to 35.1% (from 37.5% in 2022) due to comparatively higher levels of mobile device and other hardware sales with lower gross margins compared to service revenues.
Despite the ongoing cost inflation challenges, administrative expenses remained on similar levels of first half of 2022, and amounted to €26.0 million (2022: €26.1 million).
1
GO p.l.c.
Directors' Report pursuant to Capital Markets Rules 5.75.2
For the period 1 January 2023 to 30 June 2023
Review of financial performance - continued
Consolidated EBITDA for the first six months of 2023 amounted to €45.4 million, an increase of €4.2 million or 10.2% compared to the first six months of 2022. Depreciation and amortisation increased by €0.6 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. Consolidated profit before tax for the first six months of 2023 amounted to €15.1 million (2022: €12.1 million).
The Group generated net cash flows from operating activities of €33.9 million, a decrease of €4.3 million compared to the first half of 2022 driven by negative working capital movements. Net cash used in investing activities amounted to €33.0 million (2022: €35.4 million) including extensive investment in the expansion of fixed and mobile networks in Malta and Cyprus as well as an investment of €0.8 million for the acquisition of a 51% stake in Cybersift Holding Ltd.
As of June 2023, the consolidated total assets stood at €404.3 million representing an increase from €396.2 million position as at 31 December 2022. During this period, the Group continued to invest in crucial areas, including network infrastructure, broadcasting rights and in its transformation towards becoming a fully digital company.
During the first 6 months of 2023, borrowings net of cash holdings increased by €20.4 mill ion to reach €129.8 million. Total Equity as at 30 June 2023 stood at €96.8 million representing 23.9% of total assets (31 December 2022: 24.9%).
Related party transactions
During the period under review, GO paid dividends amounting to €6 million to its parent company and effected payments amounting to €1.9 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 2022 was approved and was paid to the shareholders on 15 May 2023. The Board resolved to distribute an interim net dividend of €0.07 per share which will be paid to shareholders on 7 August 2023.
Approved by the Board of Directors on 7 August 2023 and signed on its behalf by
Lassâad Ben DHIAB | Paul Testaferrata Moroni Viani |
Chairman | Director |
2
| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
GO plc published this content on 07 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2023 11:21:48 UTC.
