Issue link: https://maltatoday.uberflip.com/i/713415
maltatoday, WEDNESDAY, 10 AUGUST 2016 11 Business Today www.creditinfo.com.mt info@creditinfo.com.mt Tel: 2131 2344 Your Local Partner for Credit Risk Management Solutions Supporting you all the way GO declares €17.1m pre-tax profi t in Local telecoms provider GO Group has registered a pre-tax profit of €17.1 million in the first half of 2016, up from al- most €13 million the previous year. GO Group released its unaudited financial results for the six month period ended 30 June, 2016 yesterday. The group attributes the substantial profit to improvements in performance, enhanced revenues, profitability and EBITDA as well as underlying customer numbers. Group revenues for the six month period ended 30 June amounted to €76.7 million, up from €60.7 million in the same period in 2015. GO's earnings before interest, tax, depreciation and amortisation (EBITDA) increased to €29.9 million, compared to €25.1 million in 2015, whilst profit before tax increased to €17.1 million – an increase of nearly €4 million from last year. During the period under review GO increased its shareholding in the Cypriot t e l e c o m m u n i c a t i o n s services provider Cablenet Communication Systems Limited to 51% and also acquired 51% of the share capital of Maltese ICT services provider Kinetix IT Solutions Limited. The consolidation of both these companies has had a positive impact on the Group's financial results; for the first time Group revenues include the consolidation of €14.4 million revenue generated by Cablenet. On the other hand, Group results were also impacted by lease charges payable to Malta Properties Company plc, which was spun-off in 2015. The financial results compare favourably to the generally negative trends in the telecommunications sector across much of Europe. The company said this was due to its vision to internationalise and grow GO beyond Malta through acquisitions and a resilient performance in GO's domestic market, with initiatives to grow retail revenues and manage costs. GO achieved stronger revenues from its own telecommunications business, driven by growth in retail as well as wholesale activities. The introduction of fibre-to- the-home is leading to growth in GO's Broadband and TV client base, as reach extends to new towns and villages. This June, GO also completed the rollout of Malta's only fibre-connected 4G network, leading to a larger mobile customer base and growth in usage of mobile data, the telecoms provider said. "These investments, together with the ongoing improvement in GO's product portfolio, continue to strengthen GO's position and its overall client base which exceeds 500,000 connections across the main retail products, a significant portion through bundled services, notably its highly successful bundled Limitless mobile plans and Limitless Homepack," the company said in a statement. "GO's growth is driven by substantial ongoing investments in network infrastructure, superior customer experience and attractive multiplay bundles that satisfy the telecommunication needs of our clients," said Yiannos Michaelides, GO's CEO. GO chairman Deepak Padmanabhan expressed satisfaction at the Group's growth strategy, both at home and abroad. "Our consistently strong results not only validate GO's strategy, as it continues to deliver value to clients, employees and shareholders, but also clearly augur very well for the future.'' No budget fi nes for Spain and Portugal Spain and Portugal avoid becoming fi rst EU member states to be fi ned for budgetary failings as the European Council confi rms that sanctions will be waived The European Union formally agreed to waive fi nes for Spain and Portugal over their excessive budget defi cits. Under EU rules, member states are not supposed to run annual deficits greater than 3% of their total economic output but the European Commission recommended that Lisbon and Madrid receive a zero per cent fine and are given more time to reduce their budget deficits. On Tuesday, the EU commissioner for Economic and Financial Affairs, Pierre Moscovici said "today's decisions reflect an intelligent application of the Stability and Growth Pact. By giving more time to Spain and Portugal to bring their public deficits below 3%, the Council sets new credible fiscal trajectories, which will contribute to strengthening both their economies and the euro area." The Commission said it would assess the action taken by Spain and Portugal in the coming months in the context of both the Excessive Deficit Procedure and the analysis of the Draft Budgetary Plans for 2017. Spain, which is still without a government after two general elections in eight months, has been given a two-year extension to 2018, while Portugal's target has been pushed back one year. They will need to make adjustments worth 0.5 per cent and 0.25 per cent of GDP respectively. Last year, Spain's deficit was 5.1% of its GDP and Portugal's stood at 4.4%. Against a background of uncertainty caused by the UK's Brexit vote and rising anti-EU sentiment in the rest of Europe, the Council confirmed a plan suggested in July by the European Commission. The Council said that Madrid and Lisbon must submit a report to Brussels by 15 October showing how they will achieve their revised targets. Last year, France was given a similar waiver of a potential fine when it missed its own target. Although all EU countries are required to run budget deficits below 3% of GDP, only the 19 countries that use the euro as a currency can be fined. EU commissioner Pierre Moscovici said the waiver would strengthen Spain and Portugal's economies and the eurozone