Maltacom shares climbed upwards for three consecutive days by five per cent from the Lm1.40 closing price registered on Friday 30 March.

The share price closed 1.4 per cent higher following the publication of the results on Tuesday, then 3c0 higher at Lm1.45 on Wednesday and a further 2c0 on Thursday.

For the year ended 31 December 2006 the group maintained its turnover levels and last year’s revenue amounted to Lm55.5 million. The group’s profit before tax is Lm12.1 million, a decline of Lm4 million when compared to 2005. Profit before one-off items and voluntary retirement schemes (VRS) is Lm15 million, which compares well with the results achieved in 2005.

The group reported strong growth in broadband, mobile services and call centre resulting in growth in-group revenues, which totalled Lm55.5 million in 2006. This made up for the decline in revenues from traditional fixed line services that continued in 2006.

The profit of Lm12.1 million is mainly affected by charges amounting to Lm3.2 million for VRS.

During 2006, the group’s cost structures remained at 2005 levels. However, initiatives launched during 2006 are expected to deliver reduced cost structures, particularly in the fixed-line company, starting in 2007. One such major initiative is the VRS, which is leading to a reduction of over 200 employees from fixed-line operations.

Following an interim dividend of 1c5, net of taxation (2005, 2c0) which was paid on 27 October, the board of directors is recommending the payment of a final dividend of 5c0, net of tax (2005: 4c5) per ordinary share for the approval of the shareholders at the next annual general meeting to be held on 30 May, which dividend will be payable on 6 June. This net dividend will be payable to shareholders who are on the register of shareholders as at 30 April.

Commenting on these results, Maltacom Group chairman Sonny Portelli said: “2007 will be a year of transition. A number of changes are taking place that will help us transform the way we do business. I am confident that we are well prepared to face any challenges and move forward to grow our business. This will be a year in which we will focus strongly on enhancing customer experience. Moreover, within a quadruple-play strategy, we will continue to actively compete in the TV market.”

Mr Portelli appealed to regulators, both local and EU-wide: “A one-size fits all regulation is wrong for everybody involved. You cannot have the same regulation in Germany that you get in Malta or vice-versa. Ensuring competition is all well and good, as is liberalising the market, but those who are investing must be given the opportunity to get a good return on their investment.”

Maltacom Group chief executive officer David Kay said: “With the acquisition of Multiplus, Maltacom became the only local quadruple-play telecoms organisation offering fixed, mobile, broadband Internet and digital television,” he added.

Another important milestone for 2006 was the agreement signed between Go Mobile and Nortel Networks for the rollout of a 3G network in 2007. All these important developments were implemented within a new corporate structure that focuses on the group’s main business units, and which is based on the group’s strategic objectives.

During the year, Maltacom continued with the streamlining of its fixed-line operations and Coreswitch Limited and Wirenet Limited were merged into the company. Furthermore, the process was set in place to also merge into the company another two subsidiaries, DataStream Limited (Maltanet) and Monitoring Services Limited, effective from January 2007.

In November 2006, Maltacom completed a e6.7 million Fixed Line Switching Network Upgrade project by migrating this platform to softswitch technology, thus ensuring a sound platform for future enhanced services. This upgrade will facilitate the eventual rollout of next generation services, such as services resulting from the convergence of fixed and mobile services.

On the mobile front, Go Mobile became the first mobile operator in Malta to launch a streaming service where customers can watch television and video clips on their mobile handset. This service is powered by EDGE technology. The company will be launching its 3G suite of services during the second quarter of this year.

Go Mobile’s subscriber base increased by five per cent to reach the 164,000 mark last year – representing circa 48 per cent market share.