Pages | |
Chairman’s address | 1 |
Chief Executive Officer’s review | 2 - 4 |
Directors’ report | 5 - 53 |
Corporate governance - Statement of compliance | 54 - 63 |
Remuneration report | 64 - 69 |
Company information | 70 |
Statements of financial position | 71 - 72 |
Income statements | 73 |
Statements of comprehensive income | 74 |
Statements of changes in equity | 75 - 78 |
Statements of cash flows | 79 |
Notes to the financial statements | 80 - 188 |
Five-year record | 189 |
Independent auditor’s report |
GO Green progress* | 2023 | 2022 |
Consumption | ||
Energy Consumption (KWH) | 18,062,544 | 18,718,536 |
Renewable Energy generated (KWH) | 155,086 | 141,127 |
Water Consumption (ML) | 4,787 | 4,940 |
Emissions | ||
Scope 1 GHG emissions | 719 | 577 |
Scope 2 GHG emissions | 7,411 | 7,555 |
Scope 3 GHG emissions | 37,955 | 31,094 |
Circular Emissions | ||
Waste Generated (t) | 181 | 242 |
Non-hazardous waste (t) | 166 | 211 |
Hazardous waste (t) | 15.6 | 10.9 |
Recycled waste (t) | 112 | 170 |
Equipment refurbished to be reused | 56,732 | 51,319 |
FY 2023 | Total (€000) | Proportion of Taxonomy-eligible (non-aligned) economic activities | Proportion of Taxonomy-aligned economic activities | Proportion of Taxonomy non-eligible economic activities |
Turnover | 235,893 | 18.3% | 0% | 81.7% |
CapEx | 65,543 | 25.9% | 0% | 74.1% |
OpEx | 22,545 | 63.9% | 0% | 36.1% |
Row | Nuclear energy related activities | |
1 | The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. | NO |
2 | The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. | NO |
3 | The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. | NO |
Fossil gas related activities | ||
4 | The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. | NO |
5 | The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossilgaseous fuels. | NO |
6 | The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossilgaseous fuels | NO |
Turnover reconciliation | Amount (€000) | |
Turnover as per KPI denominator | 235,893 | |
Turnover as per the consolidated financial statements relating to: | 235,893 | |
-Telecommunication and data centre services | 204,937 | |
-Sale of goods | 24,104 | |
-Other services and sundry revenues | 6,852 | Disclosure note 22 |
Detailed breakdown of ‘Telecommunication and data centre services’ | Amount (€000) |
‘Telecommunication and data centre services’ Turnover as per the consolidated financial statements | 204,937 |
Allocation of services in the Turnover KPI | 204,937 |
8.1 Data processing, hosting and related activities | 15,165 |
8.3 Programming and broadcasting activities | 23,170 |
13.3 Motion picture, video and television programme production, sound recording and music publishing activities | 2,984 |
Taxonomy non-eligible | 163,618 |
Detailed breakdown of ‘Sale of goods’ | Amount (€000) |
Sale of goods Turnover as per the consolidated financial statements | 24,104 |
Allocation of services in the Turnover KPI | 24,104 |
8.2 Data-driven solutions for GHG emissions reductions | 1,844 |
Taxonomy non-eligible | 22,260 |
Detailed breakdown of ‘Other services and sundry revenues’ | Amount (€000) |
Other services and sundry revenues as per the consolidated financial statements | 6,852 |
Allocation of services in the Turnover KPI | |
Taxonomy non-eligible | 6,852 |
CapEx Reconciliation | Amount (€000) | |
CapEx as per EU Taxonomy KPI denominator | 65,543 | |
CapEx as per consolidated financial statements of which: | 65,543 | |
-Property, plant and equipment | 48,209 | Disclosure note 5 |
-Intangible assets | 15,191 | Disclosure note 7 |
-Right-of-use assets | 2,143 | Disclosure note 6 |
Detailed breakdown of property, plant and equipment additions | Amount(€000) |
PPE additions as per the consolidated financial statements | 48,209 |
Allocation of PPE in the CapEx KPI | 48,209 |
4.1 Electricity generation using solar photovoltaic technology | 444 |
6.5 Transport by motorbikes, passenger cars and light commercial vehicles | 54 |
7.2 Renovation of existing buildings | 545 |
7.3 Installation, maintenance and repair of energy efficiency equipment | 34 |
7.7 Acquisition and Ownership of buildings | 460 |
8.1 Data processing, hosting and related activities | 537 |
5.1 Repair, refurbishment and remanufacturing | 93 |
Taxonomy non-eligible | 46,042 |
Detailed breakdown of intangible assets additions | Amount (€000) |
Intangible asset additions as per the consolidated financial statements | 15,191 |
Allocation of PPE in the CapEx KPI | 15,191 |
8.3 Programming and broadcasting activities | 11,948 |
13.3 Motion picture, video and television programme production, sound recording and music publishing activities | 802 |
Taxonomy non-eligible | 2,441 |
Detailed breakdown of right-of-use asset additions | Amount (€000) |
Right-of-use asset additions as per the consolidated financial statements | 1,462 |
Right-of-use asset impacts of reassessment of lease term, in respect of extensions as per the consolidated financial statements | 681 |
Total right-of-use asset additions | 2,143 |
Allocation of ROU in the CapEx KPI | 2,143 |
6.5 Transport by motorbikes, passenger cars and light commercial vehicles | 1,042 |
7.7 Acquisition and Ownership of buildings | 1,040 |
Taxonomy non-eligible | 61 |
Detailed breakdown of ‘cost of goods sold' | Amount (€000) |
Cost of goods sold as per the consolidated financial statements | 2,038 |
Allocation of cost of goods sold in the OpEx KPI | |
Taxonomy non-eligible | 2,038 |
OpEx reconciliation | Full amount as per note 23 of consolidated financial statements (€000) | Amount in scope of OpEx KPI denominator as per note 23 of consolidated financial statements (€000) |
OpEx as per EU Taxonomy KPI denominator | 22,545 | |
OpEx as per consolidated financial statements of which: | 148,334 | 22,545 |
-Cost of goods sold | 30,906 | 2,038 |
-Third party network charges, content costs and other direct costs | 66,969 | 14,770 |
-Employee benefit expense | 36,942 | 1,339 |
-Expense relating to short-term leases | 1,737 | 1,736 |
-Other | 11,780 | 2,662 |
Detailed breakdown of ‘Third party network charges, content costs and other direct costs' | Amount (€000) |
Third party network charges, content costs and other direct costs as per the consolidated financial statements | 15,013 |
Allocation of third party network charges, content costs and other direct costs as per OpEx KPI | 15,013 |
6.5 Transport by motorbikes, passenger cars and light commercial vehicles | 500 |
7.7 Acquisition and ownership of buildings | 30 |
8.1 Data processing, hosting and related activities | 55 |
8.3 Programming and broadcasting activities | 12,338 |
13.3 Motion picture, video and television programme production, sound recording and music publishing activities | 708 |
Taxonomy non-eligible | 1,382 |
Detailed breakdown of ‘Employee benefit expense' | Amount (€000) |
Employee benefit expense as per the consolidated financial statements | 1,339 |
Allocation of third party network charges, content costs and other direct costs as per OpEx KPI | 1,339 |
8.3 Programming and broadcasting activities | 714 |
Taxonomy non-eligible | 625 |
Detailed breakdown of ‘Expense relating to short-term leases' | Amount (€000) |
Expense relating to short-term leases as per the consolidated financial statements | 1,478 |
Allocation of expense relating to short term leases as per OpEx KPI | |
Taxonomy non-eligible | 1,478 |
Detailed breakdown of ‘Other Expenses' | Amount (€000) |
Other expense as per the consolidated financial statements | 2,677 |
Allocation of expense relating to other expenses as per OpEx KPI | 2,677 |
6.5 Transport by motorbikes, passenger cars and light commercial vehicles | 20 |
7.3 Installation, maintenance and repair of energy efficiency equipment | 32 |
7.7 Acquisition and ownership of buildings | 12 |
Taxonomy non-eligible | 2,613 |
One GO team metrics | Group | Company | ||
2023 | 2022 | 2023 | 2022 | |
Number of employees | ||||
Male | 841 | 856 | 456 | 481 |
Females | 344 | 342 | 199 | 205 |
Number of employees at top management | - | |||
Male | 42 | 31 | 23 | 23 |
Females | 15 | 15 | 12 | 15 |
Age distribution | ||||
Less than 30 years | 305 | 322 | 143 | 166 |
Between 30 - 50 years | 688 | 670 | 357 | 369 |
Above 50 years | 193 | 206 | 155 | 151 |
Family related leave | ||||
% employees entitled to take family related leave | 100% | 100% | 100% | 100% |
Number of entitled employees that took family-related leave | ||||
Male | 34 | 19 | 18 | 12 |
Female | 28 | 19 | 21 | 17 |
% of employees with disabilities | 1.48% | 0.9% | 2.7% | 1.3% |
Health & Safety measures | ||||
% of employees covered by health & safety management systems | 100% | 100% | 100% | 100% |
Pay related | ||||
% pay gap between women and men* | 17% | 17% | 13% | 13% |
Average training hours per employees | 37 | 40 | 46 | 44 |
Environment | Social | Governance |
Climate change | Own workforce | Business conduct |
Climate change adaptation Climate change mitigation | Social dialogue*Diversity* | Anti-corruption and bribery*Competitive behaviour |
Energy | Work life balance* | |
Employment & inclusion of persons with disabilities* | ||
Circular Economy | Health and safety* | |
Waste | Gender equality and equal pay for equal work* | |
Training and skills development* | ||
Consumers and end-users | ||
Data privacy & security* | ||
Access to products and services |
Attended | |
Lassâad Ben Dhiab | 9 |
Sofiane Antar | 9 |
Paul Fenech | 9 |
Faker Hnid | 9 |
Deepak Padmanabhan | 9 |
Norbert Prihoda | 9 |
Paul Testaferrata Moroni Viani | 9 |
Azmi Lahmar | 8 |
Number of shares | |
as at 31 December 2023 | |
Lassâad Ben Dhiab | Nil |
Sofiane Antar | Nil |
Paul Fenech | 130,995 |
Faker Hnid | Nil |
Deepak Srinivas Padmanabhan | Nil |
Norbert Prihoda | Nil |
Paul Testaferrata Moroni Viani | 78,394 |
Azmi Lahmar | Nil |
Notes | 2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | ||
ASSETS | |||||
Non-current assets | |||||
Property, plant and equipment | 5 | 127,428 | 117,357 | ||
Right-of-use assets | 6 | 33,984 | 37,782 | ||
Intangible assets | 7 | 16,948 | 18,341 | ||
Investments in subsidiaries | 8 | - | - | 59,304 | 58,426 |
Investments in associates | 9 | - | - | ||
Loans receivable from subsidiaries | 10 | - | - | 9,417 | 4,000 |
Other investments | 11 | - | - | ||
Deferred tax assets | 12 | - | - | ||
Trade and other receivables | 14 | 5,576 | 5,955 | ||
Total non-current assets | 252,657 | 241,861 | |||
Current assets | |||||
Inventories | 13 | 8,733 | 8,531 | ||
Loans receivable from subsidiaries | 10 | - | - | 683 | - |
Trade and other receivables | 14 | 45,696 | 39,011 | ||
Current tax assets | - | - | |||
Cash and cash equivalents | 15 | 41,405 | 6,115 | ||
Total current assets | 96,517 | 53,657 | |||
Total assets | 349,174 | 295,518 |
Notes | 2023 | 2022 | 2023 | 2022 |
€000 | €000 | €000 | €000 | |
EQUITY AND LIABILITIES | ||||
EQUITY | ||||
Share capital16 | 58,998 | 58,998 | ||
Reserves17 | 4,767 | 4,187 | ||
Retained earnings | 79,597 | 47,991 | ||
Total capital and reserves attributable to owners of the Company | 143,362 | 111,176 | ||
Non-controlling interests | - | - | ||
Total equity | 143,362 | 111,176 | ||
LIABILITIES | ||||
Non-current liabilities | ||||
Borrowings18 | 86,287 | 70,317 | ||
Lease liabilities19 | 29,794 | 33,778 | ||
Deferred tax liabilities12 | 6,343 | 4,365 | ||
Provisions for pensions20 | 414 | 1,337 | ||
Trade and other payables21 | - | 609 | ||
Total non-current liabilities | 122,838 | 110,406 | ||
Current liabilities | ||||
Borrowings 18 | 8,017 | 8,365 | ||
Lease liabilities19 | 5,496 | 5,280 | ||
Provisions for pensions20 | 2,903 | 2,843 | ||
Current tax liabilities | 4,093 | 4,410 | ||
Trade and other payables21 | 62,465 | 53,038 | ||
Total current liabilities | 82,974 | 73,936 | ||
Total liabilities | 205,812 | 184,342 | ||
Total equity and liabilities | 349,174 | 295,518 |
Notes | 2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | ||
Revenue | 22 | 139,404 | 128,813 | ||
Cost of sales | 23 | ( | ( | (83,148) | (75,537) |
Gross profit | 56,256 | 53,276 | |||
Administrative and other related expenses | 23 | ( | ( | (31,608) | (31,585) |
Other income | 26 | 4,470 | 2,370 | ||
Other expenses | 27 | ( | ( | (242) | (358) |
Operating profit | 28,876 | 23,703 | |||
Analysed as follows: | |||||
EBITDA | 60,337 | 54,199 | |||
Depreciation and amortisation | 23 | ( | ( | (31,461) | (30,496) |
Operating profit | 28,876 | 23,703 | |||
Finance income | 28 | 33,380 | 4,381 | ||
Finance costs | 29 | ( | ( | (5,095) | (3,733) |
Profit before tax | 57,161 | 24,351 | |||
Tax expense | 30 | ( | ( | (9,345) | (8,648) |
Profit for the year | 47,816 | 15,703 | |||
Attributable to: | |||||
Owners of the Company | 47,816 | 15,703 | |||
Non-controlling interests | - | - | |||
Profit for the year | 47,816 | 15,703 |
Earnings per share (euro cent) | 31 |
Notes | 2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | ||
Comprehensive income | |||||
Profit for the year | 47,816 | 15,703 | |||
Other comprehensive income | |||||
Items that may be reclassified to profit or loss | |||||
Exchange differences on translation of foreign operations | ( | - | - | ||
Items that will not be reclassified to profit or loss | |||||
Surplus arising on revaluation of land and buildings | 5 | 626 | - | ||
Gains from changes in fair value of equity investments at fair value through other comprehensive income (FVOCI) | 11 | - | - | ||
Remeasurements of defined benefit obligations | 20 | - | 187 | ||
Income tax relating to components of other comprehensive income: | |||||
Surplus arising on revaluation of land and buildings | 12 | ( | (46) | - | |
Gains from changes in fair value of equity investments at fair value through other comprehensive income (FVOCI) | 12 | ( | - | - | |
Remeasurements of defined benefit obligations | 12 | ( | - | (65) | |
Total other comprehensive income for the year, net of tax | 580 | 122 | |||
Total comprehensive income for the year | 48,396 | 15,825 |
Attributable to: | ||||
Owners of the Company | 48,396 | 15,825 | ||
Non-controlling interests | - | - | ||
Total comprehensive income for the year | 48,396 | 15,825 |
Notes | Sharecapital | Reserves | RetainedEarnings | Total | Non-controllinginterests | TotalEquity | |
€000 | €000 | €000 | €000 | €000 | €000 | ||
Balance at 1 January 2022 | |||||||
Comprehensive incomeProfit for the year | |||||||
Other comprehensive income:Remeasurements of defined benefit obligations, net of deferred tax | 12, 20 | ||||||
Exchange differences on translation of foreign operations | ( | ( | ( | ( | |||
Total other comprehensive income | ( | ( | |||||
Total comprehensive income | |||||||
Transactions with owners in their capacity as owners Distributions to owners: | |||||||
Dividends paid to equity holders relating to preceding financial year | 32 | ( | ( | ( | ( | ||
Dividends paid to equity holders relating to current financial year | 32 | ( | ( | ( | |||
Changes in ownership interest in subsidiaries that do not result in loss of control: | |||||||
Non-controlling interest on acquisition of subsidiary | 8 | ||||||
Acquisition of further non-controlling interest in subsidiary | 8 | ( | ( | ( | ( | ||
-Total transactions with owners in their capacity as owners | ( | ( | ( | ( | |||
Balance at 31 December 2022 |
Notes | Sharecapital | Reserves | RetainedEarnings | Total | Non-controllinginterests | TotalEquity |
€000 | €000 | €000 | €000 | €000 | €000 | |
Balance at 1 January 2023 | ||||||
Comprehensive incomeProfit for the year | ||||||
Other comprehensive income:Surplus arising on revaluation of land and buildings, net of deferred tax 12, 20 | ||||||
Gains from changes in fair value of 11,12 equity investments at fair value through other comprehensive | ||||||
Exchange differences on translation of foreign operations | ||||||
Total other comprehensive income | ||||||
Total comprehensive income | ||||||
Transactions with owners in their capacity as owners Distributions to owners:Dividends paid to equity holders relating to preceding financial year32 | ( | ( | ( | ( | ||
Dividends paid to equity holders relating to current financial year32 | ( | ( | ( | |||
Changes in ownership interest in Non-controlling interest on acquisition of subsidiary8 subsidiaries that do not result in loss of control: | ||||||
Total transactions with owners in their capacity as owners | ( | ( | ( | ( | ||
Balance at 31 December 2023 |
Share | Retained | ||||
Notes | capital | Reserves | earnings | Total | |
€000 | €000 | €000 | €000 | ||
Balance at 1 January 2022 | 58,998 | 4,065 | 47,484 | 110,547 | |
Comprehensive income | |||||
Profit for the year | - | - | 15,703 | 15,703 | |
Other comprehensive income: | |||||
Remeasurements of defined benefit | 12, | ||||
obligations, net of deferred tax | 20 | - | 122 | - | 122 |
- | |||||
Total other comprehensive income | - | 122 | - | 122 | |
Total comprehensive income | - | 122 | 15,703 | 15,825 | |
Transactions with owners in their capacity as owners | |||||
Distributions to owners: | |||||
Dividends paid to equity holders for the preceding financial year | 32 | - | - | (9,118) | (9,118) |
Dividends paid to equity holders for the current financial year | 32 | - | - | (6,078) | (6,078) |
Total transactions with owners in their capacity | |||||
as owners | - | - | (15,196) | (15,196) | |
Balance at 31 December 2022 | 58,998 | 4,187 | 47,991 | 111,176 |
Share | Retained | ||||
Notes | capital | Reserves | earnings | Total | |
€000 | €000 | €000 | €000 | ||
Balance at 1 January 2023 | 58,998 | 4,187 | 47,991 | 111,176 | |
Comprehensive income | |||||
Profit for the year | - | - | 47,816 | 47,816 | |
Other comprehensive income: | |||||
Surplus arising on revaluation of land | 5,20 | ||||
and buildings, net of deferred tax | 12 | - | 580 | - | 580 |
Total other comprehensive income | - | 580 | - | 580 | |
Total comprehensive income | - | 580 | 47,816 | 48,396 | |
Transactions with owners in their capacity as owners | |||||
Distributions to owners: | |||||
Dividends paid to equity holders for the preceding financial year | 32 | - | - | (9,118) | (9,118) |
Dividends paid to equity holders for the current financial year | 32 | - | - | (7,092) | (7,092) |
Total transactions with owners in their capacity | |||||
as owners | - | - | (16,210) | (16,210) | |
Balance at 31 December 2023 | 58,998 | 4,767 | 79,597 | 143,362 |
Notes | 2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | ||
Cash flows from operating activities | |||||
Cash generated from operations | 33 | 69,835 | 49,739 | ||
Interest paid on bank overdrafts | ( | ( | (86) | (9) | |
Interest charges on lease liabilities | ( | ( | (1,150) | (1,008) | |
Tax paid | ( | ( | (7,730) | (4,938) | |
Payments under voluntary retirement scheme | ( | ( | (922) | (1,163) | |
Payments in relation to pension obligations | ( | ( | (355) | (82) | |
Net cash from operating activities | 59,592 | 42,539 | |||
Cash flows from investing activities | |||||
Payments to acquire property, plant and equipment and intangible assets | ( | ( | (38,907) | (29,210) | |
Payment for acquisition of stakes in subsidiaries | ( | ( | (878) | (6,733) | |
Payment for acquisition of interest in associate | ( | - | - | ||
Payment for acquisition of other investments | ( | - | - | ||
Proceeds from disposal of other investments | - | - | |||
Loans advanced to subsidiary | - | - | (6,100) | (4,000) | |
Dividends received from subsidiary | - | - | 31,298 | 2,593 | |
Net cash used in investing activities | ( | ( | (14,587) | (37,350) | |
Cash flows from financing activities | |||||
Proceeds from bank loans | 23,000 | - | |||
Repayment of bank loans | ( | ( | (4,925) | (7,990) | |
Principal element of lease payments | ( | ( | (5,522) | (4,790) | |
Dividends paid | ( | ( | (16,210) | (15,120) | |
Loan and bond interest paid | ( | ( | (3,674) | (2,702) | |
Net cash from/(used in) financing activities | ( | (7,331) | (30,602) | ||
Net movements in cash and cash equivalents | ( | 37,674 | (25,413) | ||
Cash and cash equivalents at beginning of year | 3,133 | 28,655 | |||
Exchange differences on cash and cash Equivalents | ( | 53 | (191) | ||
Movement in cash pledged as guarantees | (54) | 82 | |||
Cash and cash equivalents at end of year | 15 | 40,806 | 3,133 |
% | |
Land and buildings | |
Buildings | 1 - 3 |
Improvements to leasehold premises | 3 - 10 |
Plant and equipment | |
Cable, wireless and mobile networks | 4 - 33.33 |
Subscribers’ equipment and line | 8 - 20 |
Exchange and junction equipment | 8.33 - 20 |
Radio plant and equipment | 6 - 20 |
Other plant, machinery and equipment | 7 - 30 |
Office furniture and equipment | 10 - 25 |
Air conditioning equipment | 10 - 20 |
Earth station | 6.7 - 7 |
Computer equipment | 20 - 33.33 |
DTTV platform | 10 - 50 |
Customer premises equipment and related assets | 25 - 50 |
Motor vehicles | 10 - 35 |
Years | |
Indefeasible rights of use (IRUs) | 4.75 - 25 |
Computer software | 3 - 10 |
Licences | 2 - 15 |
Brand names | 6 - 15 |
Customer relationships | 5 |
Technical knowledge | 2 -15 |
Broadcasting rights | over the period of rights |
31 December 2023 | 31 December 2022 |
31 December 2023 | 31 December 2022 |
USD | STG | USD | STG | |
Company | €000 | €000 | €000 | €000 |
Trade receivables | 49 | - | 26 | - |
Trade payables | (772) | (119) | (1,497) | (138) |
Net recognised | ||||
payables denominated | ||||
in foreign currency | (723) | (119) | (1,471) | (138) |
Available funds in foreign | ||||
Currency | 54 | 236 | 242 | 523 |
Net exposure | (669) | 117 | (1,229) | 385 |
Group | Company |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Carrying amount | ||||
Financial assets measured at | ||||
amortised cost: | ||||
Loans receivables from subsidiaries (Note 10) | - | - | 10,100 | 4,000 |
Trade and other receivables (Note 14) | 25,487 | 19,280 | 26,237 | 19,674 |
Cash and cash equivalents (Note 15) | 49,180 | 16,024 | 41,405 | 6,115 |
74,667 | 35,304 | 77,742 | 29,789 |
Group31 December 2023 | 30 days past due | 60 days past due | 90 days past due | 120 days past due | 150 days past due | + 150 days past due | Total |
Weighted average expected loss rate | 2% | 5% | 9% | 26% | 20% | 75%-100% | |
Gross carrying amount (€000) | 17,668 | 3,246 | 1,828 | 866 | 1,019 | 13,202 | 37,829 |
Loss allowance (€000) | 202 | 175 | 122 | 119 | 140 | 12,442 | 13,200 |
31 December 2022 | |||||||
Weighted average expected loss rate | 2% | 5% | 9% | 26% | 20% | 75%-100% | |
Gross carrying amount (€000) | 7,037 | 2,566 | 2,120 | 1,552 | 1,472 | 17,331 | 32,078 |
Loss allowance (€000) | 451 | 210 | 427 | 166 | 123 | 11,447 | 12,824 |
Company31 December 2023 | 30 days past due | 60 days past due | 90 days past due | 120 days past due | 150 days past due | + 150 days past due | Total |
Weighted average expected loss rate | 2% | 4% | 8% | 13% | 20% | 75%-100% | |
Gross carrying amount (€000) | 5,105 | 2,512 | 1,686 | 757 | 932 | 12,134 | 23,126 |
Loss allowance (€000) | 141 | 110 | 79 | 83 | 119 | 9,953 | 10,485 |
31 December 2022 | |||||||
Weighted average expected loss rate | 2% | 4% | 8% | 13% | 20% | 75%-100% | |
Gross carrying amount (€000) | 4,430 | 2,127 | 1,539 | 1,544 | 1,469 | 10,445 | 21,554 |
Loss allowance (€000) | 363 | 172 | 146 | 162 | 120 | 9,785 | 10,748 |
Group | Company |
Company | ||||||
Bank loans | 34,949 | 38,704 | 10,901 | 10,303 | 14,295 | 3,205 |
Bonds | 59,346 | 75,096 | 2,013 | 2,013 | 6,038 | 65,032 |
Bank overdrafts | 9 | 9 | 9 | - | - | - |
Lease liabilities | 35,290 | 38,795 | 6,351 | 4,636 | 8,299 | 19,509 |
Trade and other payables | 49,522 | 49,522 | 49,522 | - | - | - |
31 December 2023 | 179,116 | 202,126 | 68,796 | 16,952 | 28,632 | 87,746 |
Group | Company |
Information about reportable segments | |||||
Malta operations | Cyprus operations | Total | |||
TelecommunicationsData Centre | Telecommunications | ||||
2023202220232022 | 20232022 | 2023 | 2022 | ||
€000€000€000€000 | €000€000 | €000 | €000 | ||
Total revenue | 142,075130,32628,66625,776 | 74,42163,900 | 245,162 | 220,002 | |
Inter-segment revenue | (7,567)(4,100)(1,702)(1,255) | -- | (9,269) | (5,355) | |
Revenue from external customers | 134,508126,22626,96424,521 | 74,42163,900 | 235,893 | 214,647 | |
Reportable segment profit before tax | 16,62019,6617,8758,283 | 2,257(5,890) | 26,752 | 22,054 | |
Tax | (8,257)(6,951)(2,930)(2,980) | (79)64 | (11,266) | (9,867) | |
Results for reportable segments | 8,36312,7104,9455,303 | 2,178(5,826) | 15,486 | 12,187 | |
Information about profit or loss: | |||||
Finance income | 329364-5 | -- | 329 | 369 | |
Finance costs | (5,145)(3,911)(204)(222) | (3,294)(2,561) | (8,520) | (6,694) | |
Depreciation and amortisation | (31,476)(30,558)(1,912)(2,105) | (20,095)(20,311) | (53,483) | (52,974) | |
Other non-cash items | |||||
Change in credit loss allowances in | |||||
respect of trade receivables | 263(686)-40 | (639)(262) | (376) | (908) |
2023 | 2022 | |
€000 | €000 | |
Profit | ||
Total profit for reportable segments and consolidated profit after tax | 15,486 | 12,187 |
Assets | ||
Total assets for reportable segments | 508,628 | 403,605 |
Inter-segment eliminations | (47,497) | (7,377) |
Consolidated total assets | 461,131 | 396,228 |
Liabilities | ||
Total liabilities for reportable segments | 409,188 | 304,620 |
Inter-segment eliminations | (47,497) | (7,377) |
Consolidated total liabilities | 361,691 | 297,243 |
Group | ||||||
Land and buildings | Plant and equipment | Customer premises equipment and relatedassets | Motor vehicles | Payments on account and assets in course of construction | Total | |
€000 | €000 | €000 | €000 | €000 | €000 | |
At 1 January 2022 | ||||||
Cost or valuation | 12,652 | 363,849 | 36,726 | 1,018 | 610 | 414,855 |
Accumulated depreciation and impairment charges | (2,013) | (225,532) | (22,821) | (423) | (258) | (251,047) |
Net book amount | 10,639 | 138,317 | 13,905 | 595 | 352 | 163,808 |
Year ended 31 December 2022 | ||||||
Opening net book amount | 10,639 | 138,317 | 13,905 | 595 | 352 | 163,808 |
Additions | 457 | 37,608 | 5,651 | 116 | - | 43,832 |
Disposals and write-offs | - | (5,401) | (5,297) | (123) | (610) | (11,431) |
Other movements | (364) | - | - | - | - | (364) |
Depreciation charge | (337) | (26,423) | (7,292) | (233) | - | (34,285) |
Depreciation/impairment released on disposals and | ||||||
write-offs | - | 4,863 | 5,297 | 42 | 258 | 10,460 |
Depreciation released on other movements | 134 | - | - | - | - | 134 |
Closing net book amount | 10,529 | 148,964 | 12,264 | 397 | - | 172,154 |
At 31 December 2022 | ||||||
Cost or valuation | 12,745 | 396,056 | 37,080 | 1,011 | - | 446,892 |
Accumulated depreciation and impairment charges | (2,216) | (247,092) | (24,816) | (614) | - | (274,738) |
Net book amount | 10,529 | 148,964 | 12,264 | 397 | - | 172,154 |
Group Land and buildingsPlant and equipment Customer premises equipment and relatedassetsMotor vehiclesPayments on account and assets in course of constructionTotal€000€000€000€000€000€000Year ended 31 December 2023Opening net book amount10,529148,96412,264397-172,154Additions36933,9338,254695,58448,209Acquisition of subsidiary (Note 8)-8---8Revaluation surplus on land and buildings- effect on cost or valuation428----428- effect on depreciation217----217Disposals and write-offs-(8,074)(1,436)(40)(9,550)Transfers4552,725--(3,180)-Reclassification to intangible assets: - cost-(1,543)---(1,543) - accumulated depreciation-1,294---1,294Depreciation charge(384)(25,364)(7,010)(185)-(32,943)Depreciation/impairment released on disposals and write-offs-7,8711,43628-9,335Closing net book amount11,614159,81413,5082692,404187,609At 31 December 2023Cost or valuation13,997423,10543,8981,0402,404484,444Accumulated depreciation and impairment charges(2,383)(263,291)(30,390)(771)-(296,835)Net book amount11,614159,81413,5082692,404187,609 |
Company | |||||
Land and buildings | Plant and equipment | Customer premises equipment and related assets | Motorvehicles | Total | |
€000 | €000 | €000 | €000 | €000 | |
At 1 January 2022 | |||||
Cost or valuation | 4,432 | 292,615 | 20,976 | 279 | 318,302 |
Accumulated depreciation | (171) | (195,803) | (10,628) | (267) | (206,869) |
Net book amount | 4,261 | 96,812 | 10,348 | 12 | 111,433 |
Year ended 31 December 2022 | |||||
Opening net book amount | 4,261 | 96,812 | 10,348 | 12 | 111,433 |
Additions | - | 23,511 | 5,041 | 102 | 28,654 |
Disposals and write-offs | - | (5,023) | (5,297) | - | (10,320) |
Depreciation charge | (23) | (17,218) | (5,295) | (11) | (22,547) |
Depreciation released on | |||||
disposals and write-offs | - | 4,840 | 5,297 | - | 10,137 |
Closing net book amount | 4,238 | 102,922 | 10,094 | 103 | 117,357 |
At 31 December 2022 | |||||
Cost or valuation | 4,432 | 311,103 | 20,720 | 381 | 336,636 |
Accumulated depreciation | (194) | (208,181) | (10,626) | (278) | (219,279) |
Net book amount | 4,238 | 102,922 | 10,094 | 103 | 117,357 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€’000 | €’000 | €’000 | €’000 | |
Cost | 13,641 | 12,817 | 3,883 | 3,883 |
Accumulated depreciation | (3,497) | (3,091) | (730) | (685) |
Net book amount | 10,144 | 9,726 | 3,153 | 3,198 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€’000 | €’000 | €’000 | €’000 | |
Cost of sales | 32,428 | 33,835 | 22,178 | 22,547 |
Administrative and other related expenses | 515 | 450 | - | - |
32,943 | 34,285 | 22,178 | 22,547 |
Group | As at 31 December 2023 | ||||||
Right-of-use assets | No of ROU assets leased | Range of remaining lease term(years) | Average remaining lease term(years) | Average extension optionconsidered(years) | No of leases with extension options | No of leases with option to purchase | No of leases with termination options |
Properties | 44 | 1 – 20 | 5 | 10 | 16 | 5 | 14 |
Equipment and motor vehicles | 154 | 1 – 5 | 2 | 1 | 4 | - | - |
Spectrum Licences | 6 | 2 – 13 | 6 | - | - | - | - |
As at 31 December 2022 | |||||||
Properties | 40 | 1 – 22 | 7 | 6 | 28 | 5 | 12 |
Equipment and motor vehicles | 136 | 1 – 5 | 2 | - | 5 | - | - |
Spectrum Licences | 6 | 1 – 12 | 7 | - | - | - | - |
Company | As at 31 December 2023 | ||||||
Properties | 14 | 1 – 20 | 9 | 12 | 13 | 5 | - |
Equipment and motor vehicles | 12 | 1 – 2 | 1 | 1 | 4 | - | - |
Spectrum Licences | 6 | 2 – 13 | 6 | - | - | - | - |
As at 31 December 2022 | |||||||
Properties | 14 | 1 – 22 | 10 | 12 | 13 | 5 | - |
Equipment and motor vehicles | 12 | 1 – 4 | 2 | 1 | 5 | - | - |
Spectrum Licences | 6 | 1 – 11 | 7 | - | - | - | - |
Group | Company |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
At 1 January | 59,180 | 32,694 | 37,782 | 26,405 |
Additions | 1,462 | 33,938 | 395 | 16,286 |
Impacts of reassessment of lease term, reflecting inclusion of extension period | 681 | - | 681 | - |
Impacts of termination of lease arrangements | (875) | - | (764) | - |
Impacts of reassessment of lease payments, determined on the basis of an index | 1,465 | 126 | 1,465 | 126 |
Depreciation | (8,724) | (7,578) | (5,575) | (5,035) |
At 31 December | 53,189 | 59,180 | 33,984 | 37,782 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Property | 614 | 13,613 | 338 | 12,845 |
Equipment and motor vehicles | 848 | 820 | 57 | 339 |
Spectrum licences | - | 19,505 | - | 3,102 |
1,462 | 33,938 | 395 | 16,286 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Depreciation charge of right-of-use assets | ||||
Properties | 3,973 | 3,450 | 2,686 | 2,144 |
Equipment and motor vehicles | 901 | 763 | 558 | 539 |
Spectrum licences | 3,850 | 3,365 | 2,331 | 2,352 |
8,724 | 7,578 | 5,575 | 5,035 |
Interest expense (included in finance costs) | 1,591 | 1,491 | 1,150 | 1,008 |
Gain recognised on reassessment of lease term (included in Other income) | 23 | - | 23 | - |
Expenses relating to short-term leases | 1,737 | 1,856 | 1,578 | 1,668 |
Group |
IRUsandDDPs | Computer software | Brand names,customerrelationshipsand relatedassets | Broad-casting rights | Payments on account and assets in the course ofconstruction | Goodwill | Total | |
€000 | €000 | €000 | €000 | €000 | €000 | €000 | |
At 1 January 2022 | |||||||
Cost | 17,352 | 9,194 | 28,495 | 27,608 | 9,580 | 28,266 | 120,495 |
Accumulated amortisation and impairment charges | (9,420) | (4,278) | (20,802) | (14,615) | - | (349) | (49,464) |
Net book amount | 7,932 | 4,916 | 7,693 | 12,993 | 9,580 | 27,917 | 71,031 |
Year ended 31 December 2022 | |||||||
Opening net book amount | 7,932 | 4,916 | 7,693 | 12,993 | 9,580 | 27,917 | 71,031 |
Additions | 9,969 | 1,172 | - | 3,865 | - | - | 15,006 |
Development | - | 1,659 | - | - | - | - | 1,659 |
Acquisition of subsidiary (Note 8) | - | 1,878 | - | - | - | - | 1,878 |
Expiration of rights | - | (1,459) | - | (1,988) | - | - | (3,447) |
Transfers | 9,580 | - | - | - | (9,580) | - | - |
Amortisation charge | (1,639) | (2,696) | (656) | (6,120) | - | - | (11,111) |
Amortisation released on expiration of rights | - | 1,459 | - | 1,596 | - | - | 3,055 |
Closing net book amount | 25,842 | 6,929 | 7,037 | 10,346 | - | 27,917 | 78,071 |
At 31 December 2022 | |||||||
Cost | 36,901 | 12,444 | 28,495 | 29,485 | - | 28,266 | 135,591 |
Accumulated amortisation and impairment charges | (11,059) | (5,515) | (21,458) | (19,139) | - | (349) | (57,520) |
Net book amount | 25,842 | 6,929 | 7,037 | 10,346 | - | 27,917 | 78,071 |
Group - continued |
CompanyIRUs and DDPsComputersoftwareBroadcastingrightsPayments onaccount and assets in the course of constructionTotal€000€000€000€000€000At 1 January 2022Cost 6878,862 1,5929,58020,721Accumulated amortisation(687)(5,550)(981)-(7,218)Net book amount-3,3126119,58013,503Year ended 31 December 2022Opening net book amount -3,3126119,58013,503Additions2,202-3,865-6,067Development-1,685--1,685Expiration of rights-(1,459)(1,596)-(3,055)Transfers9,580--(9,580)-Amortisation charge(222)(1,567)(1,125)-(2,914)Amortisation released on expiration of rights-1,4591,596-3,055Closing net book amount11,5603,4303,351-18,341At 31 December 2022Cost 12,4699,0883,861-25,418Accumulated amortisation(909)(5,658)(510)-(7,077)Net book amount11,5603,4303,351-18,341 |
2023 | 2022 | |
€000 | €000 | |
Cyprus Telecommunications | 23,563 | 23,563 |
Malta Telecommunications | 1,587 | 1,151 |
Malta Data Centre | 3,203 | 3,203 |
Terminal value growthrate | Post-taxdiscount rate | Terminal value growthrate | Post-taxdiscountrate | |
% | % | % | % | |
2023 | 2023 | 2022 | 2022 | |
Cyprus Telecommunications CGU | 2.0 | 10.8 | 2.0 | 10.2 |
Malta Data Centre CGU | 1.0 | 12.4 | 1.0 | 9.4 |
Brand names | Customer relationships |
Acquisitiondate fairvalue | Year-endcarryingamount | Year-end carrying amount | Acquisition date fair value | Year-endcarryingamount | Year-endcarryingamount | |
2023 | 2022 | 2023 | 2022 | |||
€000 | €000 | €000 | €000 | €000 | €000 | |
Cyprus Telecommunications CGU | 4,295 | 4,295 | 4,295 | 12,480 | 1,292 | 1,938 |
Malta Data Centre CGU | 1,876 | 228 | 228 | 9,828 | 10 | 22 |
Company |
Subsidiary | Registered office | Percentage ofshares held | Nature of business |
2023 | 2022 | |||
% | % | |||
BMIT Technologies p.l.c. (with listed ordinary share capital) | Building SCM02Level 2 SmartCityRicasoli, Kalkara, SCM1001,Malta | 51.0 | 51.0 | Investment holding |
Cablenet Communications Systems p.l.c. (with listed debt securities) | 41 – 49 Agiou Nicolaou StreetBlock A, Nimeli Court3rd Floor2408, EgkomiNicosiaCyprus | 70.2 | 70.2 | Provision of broadband, cable television and telephony services |
€000 | |
Fair value of initial 76% equity holding in Sens as at acquisition date | 1,000 |
€000 | |
Intangible assets: | |
Intellectual property | 1,878 |
Current assets (principally inventory and trade and other receivables) | 1,080 |
Trade and other payables | (1,642) |
Net identifiable assets acquired | 1,316 |
Attributable to non-controlling interests | (316) |
1,000 |
€000 | |
Fair value of initial 51% equity holding in Cybersift as at acquisition date | 800 |
€000 | |
Current assets (principally inventory and trade and other receivables) | 1,283 |
Trade and other payables | (570) |
Net identifiable assets acquired | 713 |
Attributable to non-controlling interests | (349) |
Goodwill | 436 |
800 |
Summarised balance sheet | Cablenet | BMITT |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Current assets | 14,932 | 13,923 | 15,910 | 8,913 |
Current liabilities | 45,102 | 39,956 | 17,060 | 7,939 |
Net current (liabilities)/assets | (30,170) | (26,033) | (1,150) | 974 |
Non-current assets | 105,645 | 96,522 | 64,741 | 16,577 |
Non-current liabilities | 75,830 | 67,349 | 52,813 | 6,493 |
Net non-current net assets | 29,815 | 29,173 | 11,928 | 10,084 |
Net assets | (355) | 3,140 | 10,778 | 11,058 |
Accumulated NCI | 1,355 | 2,561 | 5,282 | 5,418 |
Summarised statement of comprehensive income | ||||
Revenue | 74,272 | 63,900 | 28,666 | 25,781 |
(Loss)/profit for the period | (3,494) | (5,222) | 4,720 | 5,355 |
(Loss)/profit allocated to NCI | (1,040) | (1,555) | 2,313 | 2,624 |
Dividends paid to NCI | - | - | 2,450 | 2,491 |
Summarised cash flows | ||||
Cash flows from operating activities | 19,952 | 20,606 | 5,317 | 6,860 |
Cash flows from investing activities | (21,644) | (19,900) | (32,107) | (851) |
Cash flows from financing activities | 3,566 | (4,215) | 24,291 | (5,561) |
Net increase/(decrease) in cash and cash equivalents | 1,874 | (3,509) | (2,499) | 448 |
|
2023 | 2022 | |
€000 | €000 | |
Year ended 31 December | ||
Opening carrying amount | 2,292 | 2,188 |
Additions/acquisitions | 90 | 219 |
Impairment loss | - | (115) |
Closing carrying amount | 2,382 | 2,292 |
At 31 December | ||
Cost | 2,497 | 2,407 |
Accumulated impairment losses | (115) | (115) |
Carrying amount | 2,382 | 2,292 |
2023 | 2022 | |
€000 | €000 | |
Summarised statement of comprehensive income | ||
Revenue | 2,401 | 1,067 |
Profit from continued operations | 1,272 | 47 |
Profit for the period | 844 | 47 |
Other comprehensive income | (42) | 122 |
Total comprehensive income | 802 | 169 |
Company |
2023 | 2022 | |
€000 | €000 | |
Carrying amount at beginning of year | 4,000 | - |
Advances effected during the year | 6,100 | 4,000 |
Carrying amount at end of year | 10,100 | 4,000 |
Non-current | 9,417 | 4,000 |
Current | 683 | - |
Group | Company |
Group | Company |
Group | Assets | Liabilities | Net |
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | €000 | €000 | |
Depreciation of property, plant and equipment | - | - | (10,886) | (9,708) | (10,886) | (9,708) |
Fair valuation of land and buildings | - | - | (421) | (362) | (421) | (362) |
Intangible assets | - | - | (325) | (271) | (325) | (271) |
Provisions for pensions and other liabilities | 1,161 | 1,463 | - | - | 1,161 | 1,463 |
Credit loss allowances ontrade receivables and otherassets | 3,670 | 3,761 | - | - | 3,670 | 3,761 |
Right-of-use assets | - | - | (11,894) | (13,224) | (11,894) | (13,224) |
Lease liabilities | 12,352 | 13,670 | - | - | 12,352 | 13,670 |
Others | - | 306 | - | - | - | 306 |
Tax assets/(liabilities) | 17,183 | 19,200 | (23,526) | (23,565) | (6,343) | (4,365) |
Offsetting | (17,183) | (19,200) | 17,183 | 19,200 | - | - |
Net tax liabilities | - | - | (6,343) | (4,365) | (6,343) | (4,365) |
Group |
Balance1 January2022 | Recognisedin profitor loss | Recognisedin othercomprehensive income | Balance31 December2022 | Recognisedin profitor loss | Recognisedin othercomprehensiveincome | Balance31 December2023 | |
€000 | €000 | €000 | €000 | €000 | €000 | €000 | |
Property, plant and equipment | (9,039) | (669) | - | (9,708) | (1,178) | - | (10,886) |
Intangible assets | (213) | (58) | - | (271) | (54) | - | (325) |
Provisions for pensions and other liabilities | 1,557 | (29) | (65) | 1,463 | (302) | - | 1,161 |
Expected credit losses on trade receivables and other assets | 3,521 | 240 | - | 3,761 | (91) | - | 3,670 |
Right-of-use assets | (9,242) | (3,982) | - | (13,224) | 1,330 | - | (11,894) |
Lease liabilities | 9,597 | 4,073 | - | 13,670 | (1,318) | - | 12,352 |
Others | 245 | 61 | - | 306 | (306) | - | - |
(3,574) | (364) | (65) | (4,003) | (1,919) | - | (5,922) | |
Revaluation of land and buildings | (362) | - | - | (362) | (13) | (46) | (421) |
(3,936) | (364) | (65) | (4,365) | (1,932) | (46) | 6,343 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Operating spares | 8,444 | 8,277 | 8,246 | 8,150 |
Goods held for resale | 1,986 | 1,453 | 487 | 381 |
10,430 | 9,730 | 8,733 | 8,531 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
At end of year | 713 | 661 | 576 | 546 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Non-current | ||||
Trade receivables – net of provisions | 2,288 | 1,536 | - | - |
Amounts owed by subsidiaries | - | - | 2,848 | 2,848 |
Contract assets | 2,542 | 2,990 | 2,364 | 2,783 |
Costs incurred in obtaining contracts | 296 | 321 | 296 | 321 |
Costs incurred to fulfil contracts | 261 | 269 | - | - |
Prepayments | 210 | 3,463 | - | - |
Other assets | 68 | 55 | 68 | 3 |
5,665 | 8,634 | 5,576 | 5,955 |
Group | Company |
2023 | 2022 | 2023 | 2022 |
€000 | €000 | €000 | €000 |
Current | ||||
Trade receivables – net of provisions | 22,341 | 17,718 | 12,641 | 10,806 |
Amounts owed by subsidiaries | - | - | 9,967 | 4,512 |
Other receivables – net of provisions | 750 | 709 | 673 | 686 |
Indirect taxation | 8,315 | - | - | - |
Contract assets | 13,644 | 8,364 | 13,145 | 8,364 |
Costs incurred in obtaining contracts | 1,011 | 1,066 | 1,011 | 1,066 |
Costs incurred to fulfil contracts | 302 | 810 | - | - |
Prepayments | 13,626 | 19,353 | 8,219 | 13,556 |
Other assets | 40 | 21 | 40 | 21 |
60,029 | 48,041 | 45,696 | 39,011 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Trade receivables | 13,200 | 12,824 | 10,485 | 10,748 |
Other receivables | 361 | 476 | 114 | 229 |
Total credit loss allowances | 13,561 | 13,300 | 10,599 | 10,977 |
Contract assets | |||
Accrued income | 4,088 | 563 | 4,651 |
Originations | Amortisation/recognition in profit or loss | |||
€000 | €000 | |||
Revenue allocated to subsidised handsets | 4,408 | 3,547 | (3,613) | 4,342 |
Revenue allocated to discounted part of contract term | 235 | 1,348 | (1,048) | 535 |
Free credits under subscriber agreements | 2,097 | 1,488 | (1,759) | 1,826 |
Total contract assets | 10,828 | 11,354 | ||
Costs incurred in obtaining contracts | 1,282 | 1,545 | (1,440) | 1,387 |
Costs incurred to fulfil contracts | 1,165 | 883 | (969) | 1,079 |
Originations | Amortisation/recognition in profit or loss | |||
€000 | €000 | |||
Revenue allocated to subsidised handsets | 4,408 | 3,547 | (3,613) | 4,342 |
Revenue allocated to discounted part of contract term | 235 | 1,348 | (1,048) | 535 |
Free credits under subscriber agreements | 2,097 | 1,488 | (1,759) | 1,826 |
Total contract assets | 10,654 | 11,147 | ||
Costs incurred in obtaining contracts | 1,282 | 1,545 | (1,440) | 1,387 |
As at 1 January 2023 | Business related variations | As at 31December 2023 | |
€000 | €000 | €000 | |
Contract assets | |||
Accrued income | 4,444 | 4,128 | 8,572 |
Originations | Amortisation/recognition in profit or loss | |||
€000 | €000 | |||
Revenue allocated to subsidised handsets | 4,342 | 2,609 | (2,963) | 3,988 |
Revenue allocated to discounted part of contract term | 535 | 1,906 | (1,458) | 983 |
Free credits under subscriber agreements | 1,826 | 1,801 | (1,661) | 1,966 |
Total contract assets | 11,147 | 15,509 | ||
Costs incurred in obtaining contracts | 1,387 | 1,386 | (1,466) | 1,307 |
Group |
Property revaluationreserve | FVOCI investmentsfairvaluationreserve | Otherreserve | Total | |
€000 | €000 | €000 | €000 | |
At 1 January 2022 | 1,676 | - | (1,462) | 214 |
Remeasurements of defined benefit obligations: | - | |||
- actuarial gains | - | - | 187 | 187 |
- deferred taxes thereon | - | - | (65) | (65) |
At 31 December 2022 | 1,676 | - | (1,340) | 336 |
At 1 January 2023 | 1,676 | - | (1,340) | 336 |
Revaluation of land and buildings: | ||||
- surplus arising during the year | 626 | - | - | 626 |
- movement in deferred tax liability determined on the basis applicable to property disposals | (46) | - | - | (46) |
Investments at FVOCI: | ||||
- gains from changes in fair value | - | 3,976 | - | 3,976 |
- deferred taxes thereon | - | (1,393) | - | (1,393) |
At 31 December 2023 | 2,256 | 2,583 | (1,340) | 3,499 |
Mergerreserve | Propertyrevaluationreserve | Otherreserve | Total | |
€000 | €000 | €000 | €000 | |
At 1 January 2022 | 3,851 | 1,676 | (1,462) | 4,065 |
Remeasurements of defined benefit obligations: | ||||
- actuarial gains | - | - | 187 | 187 |
- deferred taxes thereon | - | - | (65) | (65) |
At 31 December 2022 | 3,851 | 1,676 | (1,340) | 4,187 |
At 1 January 2023 | 3,851 | 1,676 | (1,340) | 4,187 |
Revaluation of land and buildings: | ||||
- surplus arising during the year | - | 626 | - | 626 |
- movement in deferred tax liability determined on the basis applicable to property disposals | - | (46) | - | (46) |
Balance at 31 December 2023 | 3,851 | 2,256 | (1,340) | 4,767 |
Group | Company |
Group | 2023 | 2022 |
Currency | Year ofmaturity | Facevalue | Carryingamount | Facevalue | Carryingamount | |
€000 | €000 | €000 | €000 | |||
4% Bond | euro | 2030 | 40,000 | 39,539 | 40,000 | 39,353 |
3.5% Bond | euro | 2031 | 60,000 | 59,346 | 60,000 | 59,259 |
100,000 | 98,885 | 100,000 | 98,612 | |||
Bank loans | ||||||
Loan 1 | euro | 2024 | 6,750 | 6,745 | 9,550 | 9,544 |
Loan 2 | euro | 2025 | 5,313 | 5,310 | 7,438 | 7,433 |
Loan 3 | euro | 2030 | 15,000 | 14,946 | - | - |
Loan 4 | euro | 2030 | 8,000 | 7,948 | - | - |
Loan 5 | euro | 2030 | 3,600 | 3,553 | 3,600 | 3,551 |
Loan 6 | stg | 2026 | 30 | 30 | 42 | 42 |
Loan 7 | euro | 4043 | 30,000 | 29,791 | - | - |
68,693 | 68,323 | 20,630 | 20,570 |
Year of | Face | Carrying | Face | Carrying | ||
Currency | maturity | value | amount | value | amount | |
€000 | €000 | €000 | €000 | |||
3.5% Bond | euro | 2031 | 60,000 | 59,346 | 60,000 | 59,259 |
Bank loans | ||||||
Loan 1 | euro | 2024 | 6,750 | 6,745 | 9,550 | 9,544 |
Loan 2 | euro | 2025 | 5,313 | 5,310 | 7,438 | 7,433 |
Loan 3 | euro | 2030 | 15,000 | 14,946 | - | - |
Loan 4 | euro | 2030 | 8,000 | 7,948 | - | - |
35,063 | 34,949 | 16,988 | 16,977 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Gross proceeds | ||||
40,000 4% bonds 2030 | 40,000 | 40,000 | - | - |
60,000 3.5% bonds 2031 | 60,000 | 60,000 | 60,000 | 60,000 |
Balance at 31 December | 100,000 | 100,000 | 60,000 | 60,000 |
Issue costs: gross amounts | 1,572 | 1,572 | 872 | 872 |
Accumulated amortisation | ||||
Balance at 1 January | 184 | 72 | 131 | 44 |
Amortisation for the year | 273 | 112 | 87 | 87 |
Balance at 31 December | 457 | 184 | 218 | 131 |
Unamortised issue costs | 1,115 | 1,388 | 654 | 741 |
Carrying amount as at 31 December | 98,885 | 98,612 | 59,346 | 59,259 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
% | % | % | % | |
Bank overdrafts | 6.36 | 2.49 | 6.383 | 2.47 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Non-current | ||||
Properties | 23,662 | 25,499 | 20,310 | 21,518 |
Equipment and motor vehicles | 970 | 978 | 386 | 739 |
Spectrum licences | 16,207 | 20,289 | 9,098 | 11,521 |
40,839 | 46,766 | 29,794 | 33,778 | |
Current | ||||
Properties | 3,556 | 3,511 | 2,586 | 2,385 |
Equipment and motor vehicles | 725 | 972 | 486 | 544 |
Spectrum licences | 4,084 | 4,010 | 2,424 | 2,351 |
8,365 | 8,493 | 5,496 | 5,280 | |
Total lease liabilities | 49,204 | 55,259 | 35,290 | 39,058 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
At 1 January | 55,259 | 33,947 | 39,058 | 27,421 |
Additions (see Note 6) | 1,462 | 33,318 | 395 | 16,249 |
Payments | (10,356) | (13,664) | (6,672) | (5,787) |
Impacts of reassessment of lease term, reflecting inclusion of extension period (see Note 6) | 681 | - | 681 | - |
Impacts of termination of lease arrangements | (898) | - | (787) | - |
Impacts of reassessment of lease payments based on an index | 1,465 | 167 | 1,465 | 167 |
Interest charge | 1,591 | 1,491 | 1,150 | 1,008 |
At 31 December | 49,204 | 55,259 | 35,290 | 39,058 |
Group and Company |
2023 | 2022 | |
€000 | €000 | |
Carrying amount of pension obligations | 3,317 | 4,180 |
Group and Company |
2023 | 2022 | |
€000 | €000 | |
Non-current | 414 | 1,337 |
Current | 2,903 | 2,843 |
3,317 | 4,180 |
Impact on defined benefit obligation |
2023 | Change inassumption assumption | Increase inassumption | Decrease inassumption |
Discount rate | 1.0% | decrease of 0.48% | increase of 0.51% |
Increase by 1 year year | Decrease by 1 year Year | ||
in assumption | in assumption | ||
Life expectancy | increase of 0.69% | decrease of 0.72% |
2022 | Change in | Increase in | Decrease in |
assumption | assumption | assumption | |
Discount rate | 1.0% | decrease of 1.65% | increase of 1.82% |
Increase by 1 year | Decrease by 1 year Year | ||
in assumption | in assumption | ||
Life expectancy | increase of 1.63% | decrease of 1.70% |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Non-current | ||||
Trade payables | 12,844 | 6,066 | - | - |
Contract liabilities | - | 6,050 | - | 609 |
12,844 | 12,116 | - | 609 | |
Current | ||||
Trade payables | 34,708 | 25,464 | 17,242 | 7,921 |
Amounts owed to related party | 2,486 | 2,486 | - | - |
Other payables | 3,314 | 3,651 | 3,044 | 3,400 |
Indirect tax payable | 18,402 | 7,640 | 5,783 | 4,418 |
Contract liabilities | 24,393 | 24,883 | 12,955 | 14,550 |
Accruals | 27,814 | 26,157 | 23,441 | 22,749 |
111,117 | 90,281 | 62,465 | 53,038 |
Group | As at1 January2022 | Business related variations | As at 31 December 2022 |
€000 | €000 | €000 | |
Contract liabilities | |||
Prepaid and deferred income | 16,389 | 5,177 | 21,566 |
Revenue allocated to wholesale traffic in view of discounting arrangements | 971 | 267 | 1,238 |
Others | 1,123 | (260) | 863 |
Originations | Utilisation | |||
€000 | €000 | |||
Attributable to free credits under subscriber agreements | 2,914 | 1,259 | (1,631) | 2,542 |
Deposits received in advance from customers | 4,908 | 1,008 | (1,192) | 4,724 |
Total contract liabilities | 26,305 | 30,933 |
As at1 January2023 | Business related variations | As at 31 December 2023 | |
€000 | €000 | €000 | |
Contract liabilities | |||
Prepaid and deferred income | 21,566 | (5,829) | 15,737 |
Revenue allocated to wholesale traffic in view of discounting arrangements | 1,238 | (24) | 1,214 |
Others | 863 | (520) | 343 |
Originations | Utilisation | |||
€000 | €000 | |||
Attributable to free credits under subscriber agreements | 2,542 | 1,675 | (2,010) | 2,207 |
Deposits received in advance from customers | 4,724 | 1,045 | (877) | 4,892 |
Total contract liabilities | 30,933 | 24,393 |
Group | Company | |
20232022 | 20232022 | |
€000€000 | €000€000 | |
Category of activity | ||
Telecommunication and data centre services | 204,937193,109 | 113,885111,754 |
Sale of goods | 24,10416,406 | 20,40912,068 |
Other services and sundry revenues | 6,8525,132 | 5,1104,991 |
235,893214,647 | 139,404128,813 |
Group | Company | |
20232022 | 20232022 | |
€000€000 | €000€000 | |
Timing of revenue recognition | ||
At a point in time | 54,97543,723 | 41,55534,125 |
Over time | 180,918170,924 | 97,84994,688 |
235,893214,647 | 139,404128,813 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Cost of goods sold | 30,906 | 20,642 | 19,794 | 12,475 |
Third party network charges, content costs and other direct costs | 66,969 | 64,320 | 30,120 | 31,011 |
Employee benefit expense (Note 24 and Note below) | 36,942 | 34,857 | 21,310 | 21,738 |
Depreciation of property, plant and equipment (Note 5) | 32,943 | 34,285 | 22,178 | 22,547 |
Depreciation of right-of-use assets (Note 6) | 8,724 | 7,578 | 5,575 | 5,035 |
Amortisation of intangible assets (Note 7) | 11,816 | 11,111 | 3,708 | 2,914 |
Movement in provisions and write-offs relating to inventories (Note 13) | 64 | 158 | 42 | 129 |
Movement in credit loss allowances in respect of trade and other receivables (Note 14) | 376 | 908 | (263) | 686 |
Bad debts written off | 1,731 | 1,144 | 1,085 | 805 |
Expense relating to short-term leases | 1,737 | 1,856 | 1,578 | 1,668 |
Other | 11,780 | 11,980 | 9,629 | 8,114 |
Total cost of sales, administrative and other related expenses | 203,988 | 188,767 | 114,756 | 107,122 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Non-recurring items within: | ||||
Administrative and other related expenses | ||||
Voluntary retirement costs (Note 24) | 1,174 | 812 | 1,174 | 812 |
Movement in provisions for pensions (Note 20) | (508) | - | (508) | - |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Annual statutory audit | 249 | 203 | 200 | 160 |
Other assurance services | 80 | 80 | 80 | 80 |
Other non-audit services | 1 | 3 | 1 | 3 |
330 | 286 | 281 | 243 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Wages and salaries | 41,898 | 39,939 | 24,916 | 24,847 |
Share-based compensation (Note 23.1) | 1,264 | - | - | - |
Social security costs | 2,922 | 2,800 | 1,466 | 1,446 |
Capitalised labour costs | (9,808) | (8,694) | (5,738) | (5,367) |
36,276 | 34,045 | 20,644 | 20,926 | |
Voluntary retirement costs | 1,174 | 812 | 1,174 | 812 |
Movement in provisions for pensions | (508) | - | (508) | - |
Total employee benefit expense | 36,942 | 34,857 | 21,310 | 21,738 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Operational expenses | 6,587 | 5,770 | 1,927 | 2,010 |
Administrative and other related expenses | 30,355 | 29,087 | 19,383 | 19,728 |
36,942 | 34,857 | 21,310 | 21,738 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Fees | 273 | 245 | 273 | 245 |
Group | Company |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Rent receivable | 307 | 324 | 307 | 324 |
Unrealised and realised operating exchange gains | 202 | 204 | 195 | 191 |
Late payment charges | 278 | 277 | 278 | 277 |
Gain on disposal of assets related to mobile network towers operations (see Note 37(i)) | - | - | 1,653 | - |
Others | 2,509 | 2,140 | 2,037 | 1,578 |
3,296 | 2,945 | 4,470 | 2,370 |
Group | Company |
2023 | 2022 |
2023 | 2022 |
Group | Company |
2023 | 2022 | |
Profit attributable to equity holders of the Company (€000) | 14,417 | 11,595 |
Weighted average number of shares in issue (thousands) (Note 16) | 101,310 | 101,310 |
Earnings per share (euro cent) | 14c2 | 11c5 |
Transferred | |||
sites | BTS sites | Aggregate | |
€’000 | €’000 | €’000 | |
Master Service Agreement | 43,976 | 2,695 | 46,671 |
Passive Tower Rights Portfolio | 1,653 | 102 | 1,755 |
Property, plant and equipment – passive network | |||
infrastructure | 517 | 210 | 727 |
Prepayments | 417 | - | 417 |
Aggregate consideration | 46,563 | 3,007 | 49,570 |
2023 | 2022 | 2023 | 2022 | |
€000 | €000 | €000 | €000 | |
Current ultimate parent and related entities | ||||
Dividends paid to | 10,601 | 9,938 | 10,601 | 9,938 |
Former ultimate parent and related entities | ||||
Payments relating to leases treated in accordance with IFRS 16 requirements | 3,184 | 2,358 | 2,995 | 2,178 |
2023 | 2022 | |
€000 | €000 | |
Subsidiaries | ||
Loans advanced to | 6,100 | 4,000 |
Services provided to | 1,747 | 1,795 |
Services provided by | 1,255 | 1,255 |
Goods for resale sold to | 6,822 | 2,433 |
Dividends received from | 32,671 | 3,988 |
Interest received from | 354 | 82 |
2023 | 2022 | 2021 | 2020 | 2019 | |
€M | €M | €M | €M | €M | |
Revenue | 235.9 | 214.6 | 193.7 | 185.2 | 177.8 |
Results from operating activities | 34.9 | 28.4 | 23.5 | 21.3 | 25.8 |
Profit before income tax | 26.8 | 22.1 | 17.9 | 20.9 | 22.8 |
Profit for the year | 15.5 | 12.2 | 10.4 | 14.1 | 13.0 |
Total assets | 458.1 | 396.2 | 368.6 | 357.4 | 327.7 |
Total liabilities | 358.6 | 297.2 | 258.7 | 231.0 | 202.2 |
Total equity | 99.4 | 99.0 | 109.9 | 126.4 | 125.6 |
Operating cash flow | 85.3 | 75.4 | 67.9 | 63.7 | 63.0 |
Investing cash flow | (62.2) | (61.4) | (50.5) | (57.7) | (0.9) |
Financing cash flow | 14.0 | (43.3) | (6.3) | 17.2 | (58.2) |
Earnings per share | €0.14 | €0.11 | €0.10 | €0.13 | €0.11 |
Dividends per share | €0.16 | €0.15 | €0.16 | €0.10 | €0.14* |
Independent auditor’s report
To the Shareholders of GO p.l.c.
Report on the audit of the financial statements
Our opinion
In our opinion:
● The Group financial statements and the Parent Company financial statements (the “financial statements”) of GO p.l.c. give a true and fair view of the Group and the Parent Company’s financial position as at 31 December 2023, and of their financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards (‘IFRSs’) as adopted by the EU; and
● The financial statements have been prepared in accordance with the requirements of the Maltese Companies Act (Cap. 386).
GO p.l.c.’s financial statements comprise:
● the Consolidated and Parent Company statements of financial position as at 31 December 2023;
● the Consolidated and Parent Company income statements and statements of comprehensive income for the year then ended;
● the Consolidated and Parent Company statements of changes in equity for the year then ended;
● the Consolidated and Parent Company statements of cash flows for the year then ended; and
● the notes to the financial statements, comprising material accounting policy information and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the Group and the Parent Company in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code) together with the ethical requirements of the Accountancy Profession (Code of Ethics for Warrant Holders) Directive issued in terms of the Accountancy Profession Act (Cap. 281) that are relevant to our audit of the financial statements in Malta. We have fulfilled our other ethical responsibilities in accordance with these Codes.
To the best of our knowledge and belief, we declare that non-audit services that we have provided to the Parent Company and its subsidiaries are in accordance with the applicable law and regulations in Malta and that we have not provided non-audit services that are prohibited under Article 18A of the Accountancy Profession Act (Cap. 281).
The non-audit services that we have provided to the Parent Company and its subsidiaries, in the period from 1 January 2023 to 31 December 2023, are disclosed in Note 23 to the financial statements.
Our audit approach
|
● Overall group materiality: €1,400,000, which represents approximately 5% of profit before tax. |
● The financial statements of the Parent Company and of six of the subsidiaries which are based in Malta have been audited by our team. ● The group engagement team performed a full scope audit on all components other than Cablenet Communications Systems p.l.c., Connectedcare Limited, Cybersift Holdings Limited and its subsidiary, and Sens Innovation Group Limited and its subsidiary, which were audited by other auditors. ● The group engagement team performed oversight procedures on the work of other auditors. |
|
● Assessment of carrying amount of goodwill and intangible assets attributable to the Group. ● Accuracy of the Company’s revenue due to complex billing systems and revenue recognition. |
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated financial statements. In particular, we considered where the directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the consolidated financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually and in aggregate on the financial statements as a whole.
Overall group materiality |
€1,400,000 |
How we determined it |
Approximately 5% of profit before tax |
Rationale for the materiality benchmark applied |
We chose profit before tax as the benchmark because, in our view, it is the benchmark against which the performance of the Group is most commonly measured by users and is a generally accepted benchmark. We chose 5% which is within the range of quantitative materiality thresholds that we consider acceptable.
|
We agreed with the Audit Committee that we would report to them misstatements identified during our audit above €140,000 as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter |
How our audit addressed the Key audit matter |
Assessment of carrying amount of goodwill and intangible assets attributable to the Group
Goodwill with a carrying amount of €28.3million and intangible assets having a carrying amount of €6.8million as at 31 December 2023, have arisen from a number of acquisitions effected during the preceding financial years. An assessment is required annually to establish whether goodwill and intangible assets that have an indefinite useful life should continue to be recognised, or if any impairment is required. The assessment was performed at the lowest level at which the Group could allocate and assess goodwill, which is referred to as a cash generating unit (CGU). Goodwill and intangible assets arising from acquisitions have been allocated to the Group CGUs.
The impairment assessment relied on the calculation of a value in use for each of the CGUs. This calculation was based on estimated future cash flows for each CGU, including assumptions around revenue growth, margins and EBITDA levels, discounted at an appropriate weighted average cost of capital. The Group used its business plan as the basis for the first 5 years of cash flows and then extrapolated returns into perpetuity using a terminal growth factor.
The assumptions supporting the underlying forecast cash flows reflect significant judgements as these are affected by unexpected future market or economic conditions. The estimation of future cash flows and the level to which they are discounted is inherently uncertain and requires judgement. The extent of judgement and the size of the goodwill and intangible assets resulted in this matter being identified as an area of audit focus.
Relevant references in the Annual Financial Report and Consolidated Financial Statements: · Accounting policy: Note 1.6 and 1.7 · Critical accounting estimates and judgements: Note 3.1 · Note on intangible assets: Note 7
|
We evaluated the suitability and appropriateness of the impairment methodology applied and the discounted cash flow model as prepared by management or independent experts appointed by management.
We assessed the methodology and assumptions used by utilising our independent valuation experts. The calculations used in the model were re-performed to check accuracy and the key inputs in the model were agreed to approved sources.
Management’s cash flow forecasts used in the model were assessed by: • testing that the forecasts agreed to the most recent business plan which had been approved by the Board of Directors; • considering current year performance against plan and the reasons for any deviation also through discussion with management for each CGU; and • assessing historical forecasting accuracy through back-testing by reviewing the historical achievement of the business plan given the uncertainties in forecasting, comparing the actual historical cash flow results with previous forecasts, including forecast profit margins to historical margins.
We also focused on understanding and challenging management’s future plans for the CGUs and understanding the manner in which the related cash flow forecasts were drawn up. We benchmarked key assumptions in management’s forecasts in respect of revenue growth, gross margins and EBITDA margins, to the extent practicable, to relevant economic and industry indicators, where possible.
Our independent valuation experts critically assessed the discount rate and terminal growth rate used in the discounted cash flow models.
The challenge of our valuation experts was focused on the methodology used to determine the discount rate utilised by each CGU by reference to the overall calculated cost of capital for the Group, and on which benchmarks were the most appropriate in determining the terminal growth rate of cash flows for each CGU. We independently calculated a weighted average cost of capital by making reference to market data and benchmarked the long-term growth rates to market data. We concluded that the parameters utilised by the Group were reasonable, given historic results, economic outlook, industry forecasts and other market data.
Our discussions with the Audit Committee in respect of this key audit matter focused on the key assumptions, both individually and when combined together. During these discussions, management confirmed their view that the forecast for each CGU remained appropriate and that the key assumptions were subject to oversight.
We assessed the sufficiency of the sensitivity analysis performed by management or independent experts appointed by the Group. Independent sensitivity analysis was performed, making adjustments to a number of modelled assumptions simultaneously to identify any CGUs which were most sensitive to a change in value in use. We critically assessed whether or not a reasonably possible change to the assumptions could result in an impairment considering the sensitivity of the valuations to these assumptions. The deterioration in performance or long-term growth rate which would need to occur, or the increase in discount rate which would need to be applied to the model, that may lead to impairment in one or more CGUs is significant in view of the comfortable levels of headroom with respect to CGU carrying values. We determined that a movement in those key assumptions of this extent is unlikely. The value in use of the CGUs remains in excess of the carrying amounts by a comfortable headroom.
The appropriateness of disclosures made in relation to goodwill and intangible assets was also reviewed.
|
Accuracy of the Company’s revenue due to complex billing systems and revenue recognition
The accuracy of revenue amounts recorded is an inherent industry risk. This is because telecoms billing systems are complex and process large volumes of data with a combination of different products sold and tariff changes during the year, through a number of different systems.
The Company retails subscription packages to customers which include multiple elements and may include discounts and offers, such as services sold for a single package price. The allocation of revenue to each element of a bundled transaction is complex and requires judgement, as described in the Company’s accounting policy in Note 1.15. There is a risk that inappropriate allocations could lead to non-compliance with accounting standards and inaccurate acceleration or deferral of revenue.
Relevant references in the Annual Financial Report and Consolidated Financial Statements: Accounting policy: Note 1.15
|
We evaluated the relevant systems and the design of controls, and tested the operating effectiveness of automated and non-automated controls over the: • capture and recording of revenue transactions comprising services supplied to customers; • authorisation of tariff changes and the input of this information to the billing systems; and • calculation of amounts billed to customers.
We also tested the accuracy of a sample of customer bills.
We evaluated the Company’s revenue recognition policy and management’s current year assessment in respect of accounting for bundled transactions against relevant accounting standards and guidance taking cognisance of IFRS 15, ‘Revenue from contracts with customers’.
We tested the policy’s application by: • performing tests to confirm our understanding of the process by which revenue is calculated by the relevant billing systems as reflected above; • performing an assessment of the different product bundles and offers made available to customers during the year and confirming the fair value of the different elements of these packages to appropriate evidence of fair value; • assessing whether revenue should be accelerated or deferred based on the relative fair value of elements delivered at different points during the contract, when compared to the revenue calculated by the relevant billing system; and • where differences arose between the revenue calculated by the billing system and the revenue recognition profile calculated in accordance with the Company’s revenue recognition policy, we assessed the accuracy of those adjustments recognised to align revenue recognised with the Company’s accounting policy. In respect of this key audit matter we found no significant exceptions in our controls testing and no material misstatements were identified in our substantive testing.
|
How we tailored our Group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.
The Group’s accounting process is structured around a group finance function at its head office. Supporting finance functions exist for each of the key business operating areas (Malta and Cyprus), and these report to the Group finance team as appropriate.
The group audit engagement team in Malta carried out a full scope audit on the Parent Company and six of the subsidiaries located in Malta, accounting for 67% of Group revenues and 93% of Group profit before tax. The financial statements of Cablenet Communications Systems p.l.c., Connectedcare Limited, Cybersift Holdings Limited and its subsidiary, and Sens Innovation Group Limited and its subsidiary (the remaining subsidiaries within the Group), predominantly based in Cyprus and Malta respectively, were audited by other auditors. We issued instructions to the other auditors auditing Cablenet Communications Systems p.l.c. The figures of Connectedcare Limited, Cybersift Holdings Limited and Sens Innovation Group Limited are deemed to be immaterial in the context of the Group results.
Where the work was performed by other auditors, we determined the level of involvement we needed to have in their audit work to be able to conclude whether sufficient appropriate audit evidence had been obtained as a basis for our opinion on the Group financial statements as a whole. We have reviewed the subsidiary’s accounting policies. We have assessed the audit memorandum document prepared by the other auditors and submitted to us, the group reporting package and the audited financial statements, including all relevant financial disclosures. We have reviewed the other auditor’s audit working papers utilising a risk-based approach.
The group audit team performed all of this work by applying the overall Group materiality, together with additional procedures performed on the consolidation. This gave us sufficient appropriate audit evidence for our opinion on the Group financial statements as a whole.
Other information
The directors are responsible for the other information. The other information comprises all of the information in the annual financial report (but does not include the financial statements and our auditor’s report thereon).
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon except as explicitly stated within the Report on other legal and regulatory requirements.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
The directors are responsible for the preparation of financial statements that give a true and fair view in accordance with IFRSs as adopted by the EU and the requirements of the Maltese Companies Act (Cap. 386), and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group’s and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
● Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s and the Parent Company’s internal control.
● Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
● Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s or the Parent Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern.
● Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
● Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Report on other legal and regulatory requirements
Report on compliance with the requirements of the European Single Electronic Format Regulatory Technical Standard (the “ESEF RTS”), by reference to Capital Markets Rule 5.55.6
We have undertaken a reasonable assurance engagement in accordance with the requirements of Directive 6 issued by the Accountancy Board in terms of the Accountancy Profession Act (Cap. 281) - the Accountancy Profession (European Single Electronic Format) Assurance Directive (the “ESEF Directive 6”) on the Annual Financial Report of GO p.l.c. for the year ended 31 December 2023, entirely prepared in a single electronic reporting format.
Responsibilities of the directors
The directors are responsible for the preparation of the Annual Financial Report, including the consolidated financial statements and the relevant mark-up requirements therein, by reference to Capital Markets Rule 5.56A, in accordance with the requirements of the ESEF RTS.
Our responsibilities
Our responsibility is to obtain reasonable assurance about whether the Annual Financial Report, including the consolidated financial statements and the relevant electronic tagging therein, complies in all material respects with the ESEF RTS based on the evidence we have obtained. We conducted our reasonable assurance engagement in accordance with the requirements of ESEF Directive 6.
Our procedures included:
● Obtaining an understanding of the entity's financial reporting process, including the preparation of the Annual Financial Report, in accordance with the requirements of the ESEF RTS.
● Obtaining the Annual Financial Report and performing validations to determine whether the Annual Financial Report has been prepared in accordance with the requirements of the technical specifications of the ESEF RTS.
● Examining the information in the Annual Financial Report to determine whether all the required taggings therein have been applied and whether, in all material respects, they are in accordance with the requirements of the ESEF RTS.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
In our opinion, the Annual Financial Report for the year ended 31 December 2023 has been prepared, in all material respects, in accordance with the requirements of the ESEF RTS.
Other reporting requirements
The Annual Financial Report and Consolidated Financial Statements 2023 contains other areas required by legislation or regulation on which we are required to report. The Directors are responsible for these other areas.
The table below sets out these areas presented within the Annual Financial Report, our related responsibilities and reporting, in addition to our responsibilities and reporting reflected in the Other information section of our report. Except as outlined in the table, we have not provided an audit opinion or any form of assurance.
Area of the Annual Financial Report and Consolidated Financial Statements 2023 and the related Directors’ responsibilities |
Our responsibilities |
Our reporting |
Directors’ report The Maltese Companies Act (Cap. 386) requires the directors to prepare a Directors’ report, which includes the contents required by Article 177 of the Act and the Sixth Schedule to the Act. |
We are required to consider whether the information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements.
We are also required to express an opinion as to whether the Directors’ report has been prepared in accordance with the applicable legal requirements.
In addition, we are required to state whether, in the light of the knowledge and understanding of the Company and its environment obtained in the course of our audit, we have identified any material misstatements in the Directors’ report, and if so to give an indication of the nature of any such misstatements.
With respect to the information required by paragraphs 8 and 11 of the Sixth Schedule to the Act, our responsibility is limited to ensuring that such information has been provided. |
In our opinion: ● the information given in the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ● the Directors’ report has been prepared in accordance with the Maltese Companies Act (Cap. 386).
We have nothing to report to you in respect of the other responsibilities, as explicitly stated within the Other information section. |
Corporate Governance – Statement of compliance The Capital Markets Rules issued by the Malta Financial Services Authority require the directors to prepare and include in the Annual Financial Report a Statement of Compliance with the Code of Principles of Good Corporate Governance within Appendix 5.1 to Chapter 5 of the Capital Markets Rules. The Statement’s required minimum contents are determined by reference to Capital Markets Rule 5.97. The Statement provides explanations as to how the Company has complied with the provisions of the Code, presenting the extent to which the Company has adopted the Code and the effective measures that the Board has taken to ensure compliance throughout the accounting period with those Principles.
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We are required to report on the Statement of Compliance by expressing an opinion as to whether, in light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have identified any material misstatements with respect to the information referred to in Capital Markets Rules 5.97.4 and 5.97.5, giving an indication of the nature of any such misstatements.
We are also required to assess whether the Statement of Compliance includes all the other information required to be presented as per Capital Markets Rule 5.97.
We are not required to, and we do not, consider whether the Board’s statements on internal control included in the Statement of Compliance cover all risks and controls, or form an opinion on the effectiveness of the Company’s corporate governance procedures or its risk and control procedures. |
In our opinion, the Statement of Compliance has been properly prepared in accordance with the requirements of the Capital Markets Rules issued by the Malta Financial Services Authority.
We have nothing to report to you in respect of the other responsibilities, as explicitly stated within the Other information section. |
Remuneration report The Capital Markets Rules issued by the Malta Financial Services Authority require the directors to prepare a Remuneration report, including the contents listed in Appendix 12.1 to Chapter 12 of the Capital Markets Rules. |
We are required to consider whether the information that should be provided within the Remuneration report, as required in terms of Appendix 12.1 to Chapter 12 of the Capital Markets Rules, has been included. |
In our opinion, the Remuneration report has been properly prepared in accordance with the requirements of the Capital Markets Rules issued by the Malta Financial Services Authority. |
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Other matters on which we are required to report by exception We also have responsibilities under the Maltese Companies Act (Cap. 386) to report to you if, in our opinion: ● adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us. ● the financial statements are not in agreement with the accounting records and returns. ● we have not received all the information and explanations which, to the best of our knowledge and belief, we require for our audit.
We also have responsibilities under the Capital Markets Rules to review the statement made by the directors that the business is a going concern together with supporting assumptions or qualifications as necessary. |
We have nothing to report to you in respect of these responsibilities. |
Other matter – use of this report
Our report, including the opinions, has been prepared for and only for the Parent Company’s shareholders as a body in accordance with Article 179 of the Maltese Companies Act (Cap. 386) and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior written consent.
Appointment
We were first appointed as auditors of the Company on 17 May 2010. Our appointment has been renewed annually by shareholder resolution representing a total period of uninterrupted engagement appointment of 14 years.
Fabio Axisa
Principal
For and on behalf of
PricewaterhouseCoopers
78, Mill Street
Zone 5, Central Business District
Qormi
Malta
20 March 2024