Maltacom Group’s profit before tax for 2006 decreased by around Lm4 million when compared to the previous year, but this result compares well when excluding the voluntary retirement scheme with which the group cut its workforce by 200 people, and other one-off payments and investments.
Chairman Sonny Portelli yesterday said that notwithstanding this decrease, he was satisfied with the group’s results and expressed confidence that 2007 will be another good year for the Maltacom Group.
Mr Portelli said that although 2006 saw a decline in the use of fixed-line telephony, this was offset by a significant increase in the number of go mobile customers as well as an equally significant increase in the number of broadband customers.
He said that when put into perspective, these results were good especially in view of the difficult year the group had in 2006 – its privatisation year. Moreover, the group managed to cut its workforce by 200 people with its voluntary retirement scheme, on which it spent Lm3.2 million. It also invested heavily in new technology, around e6.7m, in order to ensure that the group keeps its client base and its leading position in the field.
“The overall performance is good but now we have to maintain the momentum of change, innovation and transformation,” he said.
He said that 2007 was expected to be a year of transition with a number of changes taking place, and reiterated that the group was well-prepared to face any challenges that come its way.
Maltacom Group chief executive officer David Kay explained that the number of mobile subscribers increased by five per cent over 2005 to 164,000. This represented around 48 per cent of the market share. Likewise, internet subscribers amounted to 65 per cent of the market.
Mr Kay said the group was planning bundle offers for telephone, mobile, internet and digital television. On the SmartCity project, Mr Kay said this would bring about “significant business potential for the Maltacom Group”.
Chief financial officer Edmond Brincat said that the Lm12.1 million pre-tax profit represented a decrease of Lm4 million when compared to 2005. He said that during 2006, the cost structures remained at the 2005 levels. Earnings per share for the year amounted to 8c as against the 11c1 in 2005.
Following an interim dividend of 1c5 per share, net of taxation, paid in October 2006, the group’s board is recommending the payment of a final dividend of 5c, net of tax. This is subject to approval at the group’s annual general meeting planned for 30 May 2007.
Replying to journalists’ questions, Mr Portelli said that Tecom Investments – the company which took over the Maltacom Group in May – was “very good news for Maltacom”.
On whether the company had a set target for the workforce, Mr Portelli said the group was always looking at its human resources and emphasised that the group did not want to “get rid of people”. He said that the fixed line business was going down, in Malta and abroad, and there was a need to redeploy people, training them and utilising them elsewhere, such as on mobile or broadband or even at the call centre operated by Maltacom’s subsidiary company, Telepage.
Replying to another question on the land Maltacom has in Qawra and Ricasoli, Mr Portelli said the Qawra property was there to remain. On the property in Ricasoli, he said the group was presently in discussion with the government to determine how to hand it over because it was “over and above Maltacom’s requirements”.
Mr Portelli also expressed concern about the pressure being exerted by the regulator who, he said, was trying to apply a “one size fits all strategy”, without taking into consideration the other issues Maltacom had to deal with, especially this year.