GO plc today published its financial results for 2014, showing a very strong performance which again demonstrates GO's ability to out-perform the sector, and is in stark contrast to challenged profitability levels across most EU markets. The company's profit before tax amounted to €20.3 million, up from €15.6 million in 2013, an increase of 30 per cent. Operating profits increased 21 per cent from €18 million in 2013 to €21.8 million. Normalised operating group profit for the year amounted to €24.3 million, an increase of 17.3 per cent. The Company is proposing a dividend of €0.07 net of tax.

In 2014, GO continued to service more than 500,000 customer connections. This is the largest customer base of any operator in Malta.  GO also continued to enjoy year-on-year growth in customer connections as growth in broadband, TV and mobile more than compensated for the decline in traditional fixed voice connections.  Equally encouraging was the annual growth in the number of customers adopting bundles of services across fixed, broadband, TV and mobile. This continued to deliver robust levels of revenues, profitability and cash generation from core operations. 

GO plc Chairman Deepak Padmanabhan said, "2014 has been an excellent year for GO. Profitability has increased due to positive results in revenue generation coupled with improving efficiency and cost control. This has been achieved in the context of a fiercely competitive market, constantly evolving customer expectations, and disproportionate regulation at both local and EU level, which all contribute to significant price pressure, and which have affected levels of profitability across Europe. Despite these pressures, Group revenues in 2014 remained stable at €122.3 million, thanks to growth in retail activities which compensated for the decline in revenues from wholesale activities, which occurred as a direct result of regulatory intervention. Our focused strategy of investing in our networks to give our customers seamless services across wired and wireless networks continues to bear fruit. As a result, the Board of Directors is recommending that during the forthcoming Annual General Meeting, shareholders approve the payment of a net dividend of €0.07 per share."

During the year under review the cost of sales, as well as administrative and related costs, excluding items of unusual nature, size, or incidence, declined by 3.3 per cent to €99.1 million (2013: €102.4 million). This was due to a decline in wholesale costs and the continued focus on managing costs without compromising customer experience.

Normalised EBITDA amounted to €49.2 million (2013: €48.4 million). The earnings per share amounted to €0.144 as against €0.1116 in 2013. Cash generation from operations amounted to €48.8 million, an increase of €1.7 million over 2013.

GO CEO, Yiannos Michaelides, said, "This strong performance and healthy cash generation enables GO to pursue its strategic investments programme to upgrade its networks and launch new technologies in order to provide improved services and innovative products to our customers. One of the main areas of investment in 2014 was Fibre-to-the-Home (FTTH), an area where we plan to continue to invest during 2015 and over the next few years. This, together with investments in other areas will ensure that GO customers continue to enjoy the best possible fixed-line and mobile broadband experience. In this way, GO is investing in delivering a better future, and will facilitate Malta achieving its digital agenda targets. At the same time we are able to maintain a healthy dividend policy as well as pursue opportunities for growth in other markets."

During 2014 GO's investment in Greek operator Forthnet S.A. through Forgendo Limited has been reclassified as 'Investment held for sale' at a value of €6.6 million, representing GO's share of the investment made by Forgendo to participate in the capital increase process undertaken by Forthnet in January 2014. 

In September 2014 GO concluded the acquisition of 25 per cent shareholding in Cablenet Systems Limited, a cable company incorporated and operating in Cyprus, in return for an interest free loan of €12 million which GO will extend to Cablenet over a maximum period of two years and which can be converted into equity, part of a path that can see GO owning 51 per cent of the share capital of Cablenet. Cablenet provides superior telecommunication services in Cyprus and GO is confident that this company will continue to grow at a fast rate in the coming years.