After a difficult and challenging period due to the Greek investment venture, GO has returned to a profitable position with a marked improvement over last year’s performance. In 2012 the company delivered a strong pre-tax profit of €26.5 million, which includes a profit of €15.1 million from core trading operations.

The previous year, GO had registered a loss of €45.2 million.

Despite this brilliant result, however, this failed to register or please the company’s minority shareholders, present in force at the company’s AGM on Tuesday.

The company’s majority shareholder is Emirates International Telecommunications, a joint venture between TECOM Investments and Dubai Investment Group, both part of Dubai Holding.

Addressing the AGM, chairman Deepak Padmanabhan pointed out that the sale of land in Qawra had brought the company €11.4 million.

As regards the investment in Greece, the chairman said: “The economic situation in Greece remains critical, resulting in a very challenging environment for Forthnet to significantly improve its performance. As a matter of fact, although Forthnet increased its subscriber base, it still registered a marginal reduction in turnover and EBITDA levels while it recognized further impairment losses. These circumstances call on the board of directors to resolve to reflect further impairment losses such that the remaining exposure to this investment is now adjusted downwards to nil.

“Following the announcement of a new rights issue by Forthnet in early 2012, the board awaits the release of the prospectus by Forthnet at which stage it will evaluate the most prudent and viable way forward.”

CEO Yiannos Michaelides then gave a long presentation on the company’s present and future.

The company has a 500,000 customer base with a 73% market share in fixed line, with an increased base in broadband and governs a 23% market share in television despite entering this segment just three years ago. Even more competition faced the mobile network where the company has been offering more and more value despite a slight decrease in sales.

The CEO said the mobile business is facing three challenges: from regulators who have pushed termination charges down, through consumer trends where Skype and apps have now outrun SMSs and through intense competition. There are, in Europe at present, 1,000 fixed line companies and 100 mobile operators whereas in the entire US there are only five operators and in China just three.

Mobile internet access today is eight times the entire internet access in 2000 and 50% of that access is dominated by videos.

The company’s strategy to meet these and future challenges is to defend its lead in multiplay, grow its lead in fixed and mobile data services and to earn, not purchase, market share as well as to explore new business with a better use of its properties, cloud services and a wider range of TV.

The company has overhauled its strategies and business plans. With GO Limitless, it is now offering four new attractive tariffs. As for TV, “Movie Channel” (GO Stars) has been available since GO’s entry in the segment in 2000 and IPTV (Interactive and HD) were launched 2 years ago. It will continue with its €100 million five-year plan which it began one and a half years ago. By last December it has completely overhauled its mobile infrastructure. It will also continue to extend its fibre to the home network which it began at Tal-Mirakli area in Lija as a pilot project, now extending it to Sliema while all State schools now get a fibre connection.

As regards the property portfolio, the company has set up a €50 million Special Purpose Vehicle to free up asset value.

When the floor was opened to questions by shareholders, Tarcisio Barbara from the Association of Shareholders wanted to know more about the €250,000 ‘ex gratia payment’ to the former CEO. He also demanded more privileges for shareholders and claimed that half the shareholders in the hall use other networks than GO. He was followed in his questions by Guz Bonnett who questioned the help given to schools and sports while the shareholders got crumbs. And when the company did not pay a dividend, it still paid interests to banks.

Frans Paris also complained about the €0.25 million handshake to the former CEO and said this followed a €240,000 handshake to the former engineer whereas the company has been niggardly with the 154 ex-Cable & Wireless employees and their pensions even when it was found at fault by the Court.

Later on, Mr Bonnett complained that shareholders who fall back with their payments should not be fined. When he wanted to continue speaking, he was cut off by the chair, but a rumble of protest by the shareholders allowed him to continue whereupon he said the AGM should be held in the evening.

Other calls from shareholders insisted that the AGM should be asked before an ‘ex gratia’ payment is made. Former CEO Stephen Muscat said the outbursts from the shareholders show that the shareholders are not happy. They insist on proper governance and other PLCs have drawn up an ‘ex gratia’ payment policy.