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Kurt Sansone
Maltacom plc announced this week it has registered a profit of Lm15.3 million last year with an increase in revenue from mobile telephony making up for lower income generated from domestic and overseas fixed line telephony.
The profit increases to Lm20.6 million if the sale of Maltacom’s shareholding in Vodafone, referred to as exceptional item, is accounted for. Operating profit before exceptional items was up by 11.8 per cent over the previous year.
Group turnover stood at Lm55.2 million and Group profit after tax stood at Lm13.1 million. Earnings per share were 12c9, an increase of 36 per cent on 2002.
The financial statements for 2003 point to the changing face of telecommunications and the ever competitive market in which the telecoms giant operates.
Cellular traffic revenue was up by 22.7 per cent. Similarly, income from internet-related services increased by 9.6 per cent as did rental income, which increased by 13.4 per cent.
On the downside, international outgoing fixed line telephony traffic revenue was down by a whopping 26.6 per cent, indicating the vast inroads made by VOIP operators with their cheap international calling cards.
Go Mobile has proved very successful and the company now has a market share of 44 per cent with 127,760 active customers. The company has also concluded roaming agreements in 133 countries.
The total contribution made by Maltacom’s subsidiaries to the Group’s results was up from Lm208,000 in 2002 to Lm3.4 million in 2003.
Maltacom, the parent company registered a decrease in turnover, which was offset by a decrease in costs. It still is the largest company in the Group with a 67 per cent share of revenue generated.
The exceptional items included the sale of Vodafone shares, Lm9.87 million, and shares in Immarsat Ventures, Lm0.57 million. They also included a one-off VAT settlement included related penalties, which is however still under dispute. The net income from exceptional items totalled Lm6.45 million.
On the issue of privatisation, Maltacom director Alexander Tranter said this was a reality that the company had to face up to. “It is expected to move forward without delay and hence our mission to transform Maltacom into a flexible, fast-to-react with accurate delivery, organisation,” he said.
Tranter reiterated that when privatisation will happen is government’s sole prerogative. He repeated the words first expressed by Investments Minister Austin Gatt that government’s preferred option seems to be the sale of shares to a strategic partner.
Asked from the floor whether the choice of a strategic partner was a wise one, Tranter said that the strategic partner option was an important development. “Personally, looking at how things are developing abroad Maltacom needs to position itself for the future. The choice of a strategic partner would take us that step further to reach out beyond our shores and to the region,” Tranter said.
But the issue of tariff rebalancing remains as thorny as ever. Maltacom is still waiting for the Malta Communications Authority to pronounce itself on the issue. “Whatever the decision may be, we will have to adapt our strategy accordingly,” Tranter answered when questioned by journalists.
Despite ongoing investment into digital television and pay-per view services, Maltacom has put these ventures on the backburner. Company officials said that they would be waiting for technology to develop further before selecting the right set-top box to be used by clients. Furthermore, the uptake of ADSL is not yet as encouraging for the proliferation of digital TV.
kurt@newsworksltd.com
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