In spite of significant and intense competition in the telecommunications sector, during the first six months of the year, Go managed to increase its total customer connections by 7,000, according to chief executive officer Yiannos Michaelides.
In particular, Go reversed the decline in mobile market share, as highlighted in the latest report from the Malta Communications Authority. At the same time, Go continued to experience growth in broadband connections and take-up of Homepack and IPTV (Internet Protocol Television).
He said the recent award of the rights for the English Premier League, together with other rights for the Champions League and Italian Serie A football confirms Go as the leading provider of quality premium TV.
“The acquisition of these rights is also in line with the group’s strategy of enhancing the overall customer experience and not just providing a robust infrastructure,” he said.
Mr Michaelides was commenting following the release of Go’s interim results for the first six months of the year, which showed that the company made a profit before tax of €8.3 million, and an operating profit (before non-recurring items) of €10.4 million.
The first six months of the year were also characterised by significant planning and investment in the group’s various networks aimed at extending the reach of new technology, such as FTTH (Fibre to the Home) and IPTV, and upgrading various core systems to enable Go to continue delivering the best quality broadband, TV and mobile experience. These investments, together with the roll-out of the new mobile radio access network completed last year, mean that Go’s mobile internet customers can reach speeds of up to 42 Mbps and that clients can enjoy unparalleled broadband experience seamlessly across both wired and wireless solutions.
Go chairman Deepak Padmanabhan said: “Go remains committed to a significant investment programme and we are encouraged by the loyalty of our customers and their response to the improvements we are constantly making to our services.
“The dynamics of the market within which we operate, however, are characterised by on-going pressures on profitability levels. Go continues to outperform its peers thanks also to significant efforts to pursue greater efficiency.
“Although pressure on revenue is not expected to abate, we believe that our strategy of ongoing investment coupled with improving efficiency will allow us to remain the service provider of choice for the majority of customers in Malta.”
The Forthnet saga
While the investment in the Greek telecommunications company Forthnet, through Forgendo, has been written off, this investment remains on the agenda and is constantly monitored. Go is closely following recent events which highlight the strategic importance of Forthnet within the Greek telecommunications market.
There have been a number of significant events over the past weeks.
Cryte Investments sold its entire 25.73 per cent shareholding, while Cypriot-based Zesmero acquired 27.04 per cent, making it the second largest shareholder after Forgendo, which owns 41.27 per cent.
Forthnet then announced that rival Wind Hellas Telecommunications has an option to acquire Zesmero’s shares. Greek industry analysts have described this as an “aggressive take-over bid” by Wind.
In a company announcement, Forthnet confirmed that there was an agreement between Wind and Zesmero, but said that details were confidential, noting only that the option was open for 12 months from July 18, 2013.