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Business • April 4 2004

Maltacom reports Lm20.8 million pre-tax profits

Maltacom this week announced profit for the year before taxation amounting to Lm20.6 million, representing a return of 28.1 per cent on the average shareholders’ funds and of 15.8 per cent on the average total assets employed for the 2003 fiscal year.
Earnings per share for the year amounted to 12c9.
The Gross Margin for the year amounted to Lm26.2million, equivalent to 47.5 per cent of turnover. Net operating costs amounted to Lm34.5 million and include mainly the provision for VAT on international incoming interconnection revenue and other VAT claims on subsidiary undertakings, impairment charges on tangible fixed assets, interconnection charges with other operators, labour and depreciation and are net of the profit on disposal of the investment in Vodafone Malta Limited and Inmarsat Ventures plc.
The tax expense for the year amounted to Lm7.6 million and represent an effective tax rate of 36.6 per cent.
The directors recommend that at the next Annual General Meeting, the shareholders approve the payment of a dividend of Lm 0.037 net of taxation per share on 31 May. Furthermore an interim dividend of Lm0.012 per share was declared on 30 March.
Group total assets as at balance sheet date stood at Lm129.8 million. Loans by financial institutions amounted to Lm16.8million and finance 21.1 per cent of the Group’s fixed assets.
Debtors, net of provisions for doubtful debts, amounted to Lm32.1million. Of these, 71.4 per cent represent amounts receivable in respect of services rendered and goods sold by the Group. The Group’s trade and capital creditors at the end of the period amounted to Lm17.2 million.
Shareholders’ funds amounted to Lm78.0million, which finances 60 per cent of the Group’s total assets. The Group’s net asset value per share stands at Lm0.769.
Commenting on the results, Maltacom Chairman Sonny Portelli comments, “This has been really good year for Maltacom. The Operating Profit grew by 11.8 per cent, and the Profit before tax increased by 53 per cent. These results were achieved, despite unrelenting pressures throughout the year on revenues, primarily those from International Traffic.
“During the current year we will remain focussed on our primary task of increasing market share, reducing our overheads, and improving our efficiencies. We are reasonably confident that the skills of our workforce and the resources of your Company place us in a good position to meet the challenges of the future.”
Maltacom’s Group Chief Executive Officer Stephen Muscat adds, “We reach the end of this financial year with a strong balance sheet, healthy cash flow, and an attractive dividend. Once again, we have increased profitability by double-digit figures. The Group has seen very strong performances from certain diversified businesses, such as mobile. These results are the outcome of a sound corporate strategy which is driving Maltacom’s transformation from incumbent operator into a mature Group of companies operating with a strong commercial focus.
“The Maltacom Group enters this year in a structurally and financially strong position and is well placed to exploit new opportunities in a competitive market. We will continue to keep a close eye on the bottom line, but, simultaneously, we will be seeking to future-proof our business by investing in sensible growth areas. This dual approach ensures we build shareholder value on solid foundations.”

 

 

 

 





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