Leading Malta-based telecommunications provider GO plc has recorded a €4.21 million increase in profit before tax in the opening half of 2022, after a substantial rise in revenue, it announced on Tuesday.

Revenues soared by almost 13 per cent from the comparable period to €105.97 million, a record figure at an interim stage, reflecting the growth within the telecommunications industry in Malta and Cyprus.

This was achieved despite a marginal decline in its data centre and IT services subsidiary’s – BMIT Technologies plc - income amid increasing technology-driven competitive pressures and global supply chain issues leading to customer project delays. BMIT recorded a gross revenue of €12.6 million, a minor decline of just over one per cent compared to the same period in 2021.

GO’s local telecom services increased by €7.3 million over the period and was largely boosted by growth in fixed broadband and mobile customer base subscribers, as well as a partial recovery of roaming revenue and other international wholesale business. It also had higher levels of supply and maintenance of hardware and telecoms equipment.

Similarly, its subsidiary in Cyprus, Cablenet, recorded €30.1 million in revenue, an increase of €4.5 million or 17.4 per cent over the same period in the previous year, largely due to subscriber gains from higher market share and the expansion of network footprint.

Higher volume of business, one-off staff compensation, and higher levels of investment in network expansion and other strategic ventures led to an 8.4 per cent increase in operating costs, yet this was outweighed by the stronger increase in revenue.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 18.2 per cent to €41.2 million from the comparable period’s €34.8 million.

Through its operating activities, GO generated net cash flows amounting to €38.2 million, a rise of 40 per cent from the figures in the first half of 2021, allowing the company to fund higher levels of investments at €35.4 million.

Consolidated total assets as at 30th June 2022 remained relatively unchanged from those at the end of the previous financial year, amounting to €368.1 million. In May, Cablenet capitalised its 4G and 5G spectrum frequencies leading to an increase in Right-of-Use Assets of €15.9 million and a corresponding increase in Right-of-Use Liabilities of €10.6 million.

GO’s Board of Directors elected to distribute a net interim dividend of €0.06 per share, which translates to a payout ratio of 94.3 per cent. The dividend is payable on 9th September 2022 to all shareholders as at close of trading on 24th August 2022.

In the directors' report, Chairman Lassâad Ben Dhiab and Director Paul Testaferrata Moroni Viani note that while its financial performance over the first half of 2022 has not been significantly impacted by the ongoing effects of the pandemic, since economic data has shown good signs of global recovery, GO has suffered when it comes to indirect effects of the war in Ukraine, particularly in terms of higher transportation costs and inputs of energy of commodity-based material employed in operations and networks. Cablenet does offer services to Cyprus-based entities that may have Russian or Ukrainian nationality or ownership, but such customers represent “an immaterial part” of its revenue and no significant direct impact on revenues or payments has been felt, they said.

GO plc is an electronic communications services provider in Malta offering both fixed and mobile telecommunications services, as well as TV services, high-speed broadband and also other connectivity services. It is the parent company of GO Group, that has a majority stake in BMIT Technologies as well as Cyprus-based fixed and mobile telecommunication services provider Cablenet Communications Systems plc.