Major local telecoms provider GO plc registered €26.8 million in profit before tax during 2023, a 21.3 per cent increase from the figure recorded in 2022 (€22.1 million).
The figure was unveiled on Wednesday, when GO Group’s financial statements for the year ended 31st December 2023 were released.
The revenue for the group, which aside from GO Telecoms also includes BMIT Technologies plc, Cablenet Communications Systems plc, Connectedcare Limited, Sens Innovation Group Limited, and Cybersift Holdings Limited, went up to a record high of €235.9 million. This represents a 9.9 per cent increase over 2022 (€214.6 million). The majority of the revenue came from telecommunication and data centre services, with this amounting to €204.9 million in 2023 (2022: €193.1 million).
Cost of sales were also on the rise, going up by 9.6 per cent to €148.7 million from 2022’s €135.7 million. Administrative and other related expenses experienced relatively marginal increases, rising to €55.3 million in 2023. The primary contributors to these increases were cost of goods sold (€30.9 million), third-party network charges, content costs and other direct costs (€67 million), as well as employee benefit expenses (€36.9 million).
While finance income for the year remained relatively stable at €329,000, finance costs surged to €8.5 million from the €6.7 million that was registered at the end of 2022.
At company level, GO Telecoms achieved total revenues of €139.4 million, 8.2 per cent higher than in 2022 (€128.8 million). This was mainly attributed to growth in its fixed and mobile subscribers, higher levels of activity in international wholesale, as well as the sale of mobile handsets and bespoke technical solutions.
Additionally, GO Group’s operating subsidiaries also experienced positive years. BMIT Technologies registered €28.7 million in revenue, while Cablenet Communications Systems plc achieved another yet of double-digit growth in revenues, amounting to €74.4 million, 16.2 per cent more than in 2022.
During 2023, BMIT Technologies acquired the 278 sites that make up GO plc’s passive telecoms assets, necessary for the telecoms company to function, for a total figure of €46.6 million. BMIT is now responsible for maintaining the cell towers and providing GO with hosting and co-location services for an initial 30-year period.
As at the end of the year, GO Group’s total assets amounted to €458.1 million, experiencing significant growth of 15.6 per cent from 2022’s €396.2 million.
Due to GO Group’s performance, the Board of Directors has recommended a final dividend of €0.05 per share, which in addition to the interim dividend of €0.07 per share paid last August, the total dividend distribution for financial year 2023 comes in at a total of €0.12 per share. An extraordinary interim dividend of €0.15 per share was also distributed in February 2024 following the completion of the sale of GO’s passive mobile infrastructure to BMIT Technologies.
GO Chairman Lassâad Ben Dhiab
Commenting on the performance, GO Chairman Lassâad Ben Dhiab stated that 2023 was “one of the first years with a true semblance of pre-pandemic norms.”
“It brought with it a palpable energy, and renewed hope amongst the business community. People’s and businesses’ dependence on connectivity services was unwavering, and we are privileged, as GO Group, to be able to facilitate people’s lives and enable businesses to thrive because of the services and solutions we provide,” he added.
He stated that GO plc is “one of the fastest growing telecom companies in Malta, performing exceptionally in all segments.” Mr Ben Dhiab described the past year as an “exceptional” one for the group, acknowledging the synergies that are “getting stronger” between its individual companies.
“It is by working closely together and creating the right environment and culture, that we can continue to grow as a group and bring even greater value to our collective customers and shareholders, making their lives better every day. To do so, we must remain vigilant in our efforts against climate change and be respectful of the environment in which we are operating,” he continued.
Mr Ben Dhiab proceeded to thank the people who were vital for the group’s performance over the year, adding: “As our journey continues, I remain confident in a bright and prosperous future.”
Reviewing the performance, CEO Nikhil Patil remarked that 2023 was a “transformational year” for GO Group, particularly since it has been “firing on all cylinders to deliver record results and returns” to its shareholders.
“We have transformed BMIT Technologies into Malta’s first digital infrastructure company, continued investing in networks, technology, and start-ups, driving GO to become the fastest-growing communications company in Malta in 2023,” he added.
Commenting on the BMIT Technologies transaction, he said that this move significantly lightened the administrative burden placed on GO, allowing it to focus more on its core business. Mr Patil also explained that the cash proceeds from the transaction will enable GO to continue investing in its technology, products, and services.
Mr Patil said that 2023 was “undeniably rewarding,” adding that GO has been “one of the best-performing publicly listed companies in Malta in terms of total shareholder returns” and the contribution to communities.
“Together with our subsidiary and associate companies, we’re poised for further growth and innovation, fuelled by our unwavering commitment to excellence, environmental responsibility, and customer satisfaction,” he concluded.
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