Maltacom p.l.c announced its Group’s financial results for the period ended 30th June 2006, stating that turnover decreased marginally by 0.5% to Lm 26.6 million (€62 million, US$ 78.7 million). In turn, pre-tax profit was found to be at tax down by 18.1% to Lm 6.3 million (€14.6 million, US$18.6 million) while profit after tax decreased by 17.2% to Lm 4.2 million (€9.8 million, US$12.4 million).
The group’s earning per share at the end of the year decreased to 4c1 (€0.096, US$0.122) from 5c0 (€0.116, US$0.147) while annualised return on capital employed fell by 13.9% as compared to 18.2% in 2005. Speaking of the results, Maltacom’s Chairman, Mr. Sonny Portelli said that , the Company’s results for the first six months of 2006 were substantially below those of the same period in 2005, adding that the Board and management have been considering plans for an enterprise wide cost rationalisation exercise, and a formulation of plans for a thorough restructuring of the Group.
Commenting on the results, Maltacom’s Chairman, Mr. Sonny Portelli, stated that “Despite revenues at practically the same level with those recorded during the comparable period of last year, the Company’s results for the first six months of 2006 were substantially below those of the same period in 2005. Contributing, inter alia, to this performance were: the drastic reduction in international call rates, as well as provisions for doubtful debts; provisions for slow moving inventories; impairment losses of local exchange equipment; and increases in wages.”
He added that “Counteracting, to a substantial extent, the negative impacts on the revenues from our fixed line business were: the positive results recorded by our ‘new wave’ services, namely: mobile voice and broadband.”
Mr. Portelli also explained that the requirement for immediate rectifying action, has led the Board and management to consider plans for an enterprise wide cost rationalisation exercise, and a formulation of plans for a thorough restructuring of the Group.
Speaking of these plans, Mr. Portelli commented that “Both initiatives are nearing finalisation, and shortly will be rolled out. They are expected to impact positively on the Group’s efforts to maintain ‘end of the year’ performance within sight of the Company’s forecasts.”
See also:
Maltacom registers Lm16 million profit
By Giselle Borg Olivier
Apr 20, 2006, 18:57 CET
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