GO Plc

Quarterly Report • Aug 7, 2020

COMPANY ANNOUNCEMENT

The following is a Company Announcement issued by GO p.l.c. ("the Company") pursuant to the Listing Rules as issued by the Listing Authority in accordance with the provisions of the Financial Markets Act (Chapter 345 of the Laws of Malta) as they may be amended from time to time.

Quote

In a meeting held earlier today, the Board of Directors of the Company approved the attached Group Interim Unaudited Financial Statements for the six-month period ended 30 June 2020.

The Interim Financial Statements are also available for viewing on the Company's website through the following link: https://cms.go.com.mt/wp-content/uploads/2020/08/Interim-Financial-Statements-2020.pdf

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Dr. Francis Galea Salomone LL.D. Company Secretary

7 August 2020

GO plc, Fra Diego Street, Marsa, MRS 1501 Malta PO Box 40, Marsa MRS 1001 t. +356 2124 6200 e. customercare@go.com.mt Company Registration Number: C22334 VAT Number: MT 12826209

LTRH - Apr 15 – 317

go.com.mt

Condensed Consolidated Interim Financial Statements

For the Period 1 January 2020 to 30 June 2020

Company Registration Number: C 22334

Condensed Consolidated Interim Financial Statements

For the period 1 January 2020 to 30 June 2020

Contents

	Pages
Directors' Report pursuant to Listing Rule 5.75.2	1 - 2
Condensed Consolidated Interim Financial Statements:
Condensed Consolidated Interim Statement of Financial Position	3 - 4
Condensed Consolidated Interim Income Statement	5
Condensed Consolidated Interim Statement of Comprehensive Income	6
Condensed Consolidated Interim Statement of Changes in Equity	7 - 8
Condensed Consolidated Interim Statement of Cash Flows	9 - 10
Notes to the Condensed Consolidated Interim Financial Statements	11 - 20
Statement pursuant to Listing Rule 5.75.3	21
Independent Auditor's Report on Review of Condensed Consolidated Interim Financial Statements

Directors' Report pursuant to Listing Rule 5.75.2

For the period 1 January 2020 to 30 June 2020

This Half-Yearly Report is being published in terms of Chapter 5 of the Listing Rules of the Listing Authority – Malta Financial Services Authority and the Prevention of Financial Markets Abuse Act, 2005. The Half-Yearly Report comprises the reviewed (not audited) condensed consolidated interim financial statements for the six months ended 30 June 2020 prepared in accordance with International Financial Reporting Standards adopted for use in the EU for interim financial statements (International Accounting Standard 34, "Interim Financial Reporting"). The condensed consolidated interim financial statements have been reviewed in accordance with the requirements of ISRE 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". The comparative statement of financial position has been extracted from the audited financial statements for the year ended 31 December 2019.

Principal activities

The Group is Malta's leading integrated telecommunications services provider and its high-speed networks form the backbone of the island's modern communications infrastructure. The services provided by the Group include fixed-line and mobile telephony, data and TV services for both residential and business clients. The Group also provides business clients with data centre facilities and ICT solutions.

The Group also operates in Cyprus through its 60.3% shareholding in Cablenet Communication Systems Limited ("Cablenet") which provides broadband, cable TV and telephony services to residential and business clients.

Review of financial performance

The period under review was characterised by unprecedented events brought about by the COVID-19 pandemic which had far-reaching social and economic impacts both locally and internationally. The Group's performance was also impacted during this extraordinary period but with the measures taken, the impact on the financial results was significantly mitigated.

Group revenue amounted to €91.6 million, an increase of 7.8% over the same period last year. The main driver of this increase related to revenue growth of €5.6 million in Cablenet which growth was fuelled by the Company's diversification into premium sports content. Revenue from data centre operations increased by €0.5 million. The telecommunication's arm in Malta also registered an increase in revenue which was the result of the launch of the Easy buy product, consolidation of traditional fixed line services and sale of hardware. The increase was partially impacted by the reduction in mobile roaming revenue which was directly impacted by the measures taken by the Government as response to the COVID situation.

Group EBITDA remained stable compared to the same period last year, however operating profit decreased by €3.9 million mainly due to higher depreciation and amortisation charges.

Cash generation from operations remains strong and stable across the entire Group and during the period under review amounted to €26.1 million (2019: €24.8 million). The continued strong cash generation from operations enabled the Group to fund investments of €30.0 million (2019: €16.9 million).

The Group continues to enjoy a healthy financial position. As at 30 June 2020 the Group had a total asset base of €327.7 million which is 39.4% (2019: 38.3%) funded through equity. During the first six months of 2020, borrowings net of cash holdings increased from €56.1 million as at 31 December 2019 to €65.7 million as at 30 June 2020.

Directors' Report pursuant to Listing Rule 5.75.2

For the period 1 January 2020 to 30 June 2020

Commentary on COVID-19 pandemic

GO commenced preparations for the pandemic, well before the first positive case was recorded in Malta. It set up a multi-disciplinary COVID-19 response team which designed a response for every possible scenario to ensure that every measure was taken to ensure the wellbeing and safety of our employees and customers, whilst safeguarding the interests of our shareholders and other stakeholders. The Group adopted rigorous health and safety measures often going beyond the requirements imposed by the health authorities to ensure the wellbeing of our frontline employees and our customers. A fully remote working environment was implemented for all other employees of the Group.

Throughout the pandemic, GO continued to obsess about its customers, keeping them connected to what matters most to them, be it remote working, online learning, entertainment or simply connecting with friends and family. It also ensured that no one was left behind in the process. GO gave free and unlimited access to its premium TV content to the entire island including non-GO customers through the innovative and flexibility of the GO TV app. Furthermore, GO supported Malta's front-line workers by extending free mobile voice and data connectivity throughout the pandemic. It also ensured that any customer who was stranded in red-zone countries had the necessary means to stay connected to family and friends.

GO was also instrumental in ensuring that hospitals, clinics, major call centres, banks, as well as all other businesses from different sectors continued to operate seamlessly and where possible from the safety of their employees' homes. It proactively reached out to its customers with bespoke solutions for their respective operations, ensuring that their employees were connected to the best technology, with increased bandwidth, as required.

The Group took various measures aimed at mitigating the short-term financial impact of the pandemic while ensuring the long-term sustainability of the business.

Related party transactions

During the period under review, the Group acquired services amounting to €0.002 million from entities ultimately controlled by Société Nationale des Télécommunications (Tunisie Telecom), the intermediate parent company, and €0.04 million from other related entities.

Dividends

On 12 March 2020, the Board of Directors approved the payment of a final dividend in respect of the year ended 31 December 2019 of €0.14 over and above the special interim dividend of €0.41 paid during 2019. However in light of the COVID pandemic and the current economic situation, the Board revised its decision and proposed a final dividend of €0.10. This dividend was approved for payment during the Annual General Meeting of GO plc on 28 July 2020 and was paid to the shareholders on 30 July 2020.

Approved by the Board of Directors on 7 August and signed on its behalf by

Director Director

Faker Hnid Paul Testaferrata Moroni Viani

Condensed Consolidated Interim Financial Statements

Statement of financial position As at 30 June 2020

ASSETS	Note	As at 30 Jun 2020 Unaudited €000	As at 31 Dec 2019 Audited €000
Non-current assets Property, plant and equipment Right-of-use assets Intangible assets Investment in associate Trade and other receivables	5	154,253 47,098 66,786 18 3,022	147,091 50,131 71,035 18 2,106
Total non-current assets		271,177	270,381
Current assets Inventories Trade and other receivables Current tax assets Cash and cash equivalents		5,799 37,426 225 13,065	6,146 36,535 1,488 13,186
Total current assets		56,515	57,355
Total assets		327,692	327,736
EQUITY AND LIABILITIES
EQUITY Share capital Reserves Retained earnings		58,998 37,524 18,894	58,998 37,544 13,853
Total equity attributable to equity holders of the Company		115,416	110,395
Non-controlling interests		13,620	15,175
Total equity		129,036	125,570

Condensed Consolidated Interim Financial Statements

Statement of financial position - continued As at 30 June 2020

	Note	As at 30 Jun 2020 Unaudited €000	As at 31 Dec 2019 Audited €000
LIABILITIES
Non-current liabilities Borrowings Lease liabilities		66,049 40,951	53,865 43,781
Deferred tax liabilities		3,180	2,451
Provisions for pensions	6	1,789	1,931
Trade and other payables		4,447	8,478
Total non-current liabilities		116,416	110,506
Current liabilities
Borrowings		12,739	15,380
Provisions for pensions	6	3,308	3,237
Lease liabilities		6,817	6,228
Trade and other payables		59,376	66,280
Current tax liabilities		-	535
Total current liabilities		82,240	91,660
Total liabilities		198,656	202,166
Total equity and liabilities		327,692	327,736

The notes on pages 11 to 20 are an integral part of these condensed consolidated interim financial statements.

The condensed consolidated interim financial statements set out on pages 3 to 20 were approved by the Board of Directors on 7 August 2020 and were signed on its behalf by:

Director Director

Faker Hnid Paul Testaferrata Moroni Viani

Condensed Consolidated Interim Financial Statements

Income statement For the period 1 January 2020 to 30 June 2020

	Six months ended 30 Jun 2020 Unaudited €000	Six months ended 30 Jun 2019 Unaudited €000
Revenue Cost of sales	91,556 (58,402)	84,899 (48,236)
Gross profit Administrative and other related expenses Other income Gain on transactions in property rights	33,154 (23,260) 530 -	36,663 (23,936) 720 900
Operating profit	10,424	14,347
Analysed as follows: EBITDA	35,501	35,654
Depreciation and amortisation	(25,077)	(21,307)
Operating profit	10,424	14,347
Finance income Finance costs	195 (1,648)	179 (1,597)
Profit before tax Tax expense	8,971 (3,334)	12,929 (5,087)
Profit for the period	5,637	7,842
Attributable to: Owners of the Company Non-controlling interests	5,041 596	6,390 1,452
Profit for the period	5,637	7,842
Earnings per share (euro cents)	5	6c3

The notes on pages 11 to 20 are an integral part of these condensed consolidated interim financial statements.

Condensed Consolidated Interim Financial Statements

Statement of comprehensive income For the period 1 January 2020 to 30 June 2020

Comprehensive income	Six months ended 30 Jun 2020 Unaudited €000	Six months ended 30 Jun 2019 Unaudited €000
Profit for the period	5,637	7,842
Other comprehensive income Items that will not be reclassified to profit or loss Remeasurements of defined benefit obligations Income tax relating to components of other comprehensive income: - Remeasurements of defined benefit obligations	(32) 12	(189) 66
Total other comprehensive income for the period, net of tax	(20)	(123)
Total comprehensive income for the period	5,617	7,719
Attributable to: Owners of the Company Non-controlling interests	5,021 596	6,267 1,452
Total other comprehensive income for the period	5,617	7,719

The notes on pages 11 to 20 are an integral part of these condensed consolidated interim financial statements.

Condensed Consolidated Interim Financial Statements

Statement of changes in equity For the period 1 January 2020 to 30 June 2020

Unaudited	Share capital €000	Reserves €000	Retained earnings €000	Total €000	Non controlling interests €000	Total equity €000
Balance at 1 January 2019	58,998	(2,343)	55,983	112,638	7,539	120,177
Comprehensive income Profit for the period	-	-	6,390	6,390	1,452	7,842
Other comprehensive income Remeasurements of defined benefit obligations, net of deferred tax	-	(123)	-	(123)	-	(123)
Total other comprehensive income	-	(123)	-	(123)	-	(123)
Total comprehensive income	-	(123)	6,390	6,267	1,452	7,719
Transactions with owners in their capacity as owners Distributions to owners:
Dividends to equity holders	-	-	(55,720)	(55,720)	-	(55,720)
Changes in ownership interest that do not result in loss of control:
Disposal of non-controlling interest in subsidiary	-	45,290	-	45,290	3,593	48,883
Total transactions with owners	-	45,290	(55,720)	(10,430)	3,593	(6,837)
Balance at 30 June 2019	58,998	42,824	6,563	108,475	12,584	121,059

Condensed Consolidated Interim Financial Statements

Statement of changes in equity For the period 1 January 2020 to 30 June 2020

Unaudited	Share capital €000	Reserves €000	Retained earnings €000	Total €000	Non controlling interests €000	Total equity €000
Balance at 1 January 2020	58,998	37,544	13,853	110,395	15,175	125,570
Comprehensive income Profit for the period	-	-	5,041	5,041	596	5,637
Other comprehensive income Remeasurements of defined benefit obligations, net of deferred tax	-	(20)	-	(20)	-	(20)
Total other comprehensive income	-	(20)	-	(20)	-	(20)
Total comprehensive income	-	(20)	5,041	5,021	596	5,617
Transactions with owners in their capacity as owners Distributions to owners: Dividends to equity holders	-	-	-	-	(2,151)	(2,151)
Total transactions with owners	-	-	-	-	(2,151)	(2,151)
Balance at 30 June 2020	58,998	37,524	18,894	115,416	13,620	129,036

The notes on pages 11 to 20 are an integral part of these condensed consolidated interim financial statements.

Condensed Consolidated Interim Financial Statements

Statement of cash flows

For the period 1 January 2020 to 30 June 2020

	Six months ended 30 Jun 2020 Unaudited €000	Six months ended 30 Jun 2019 Unaudited €000
Cash flows from operating activities
Operating profit	10,424	14,347
Adjustments for:
Depreciation and amortisation	25,077	21,307
Net increase in provisions and write-
downs in relation to receivables and inventories	780	596
Expenses in relation to disposal of non-controlling interest in subsidiary	-	1,534
Gain on transactions in property rights	-	(900)
Provisions for pensions	-	7
Voluntary retirement costs	1,574	954
	37,855	37,845
Changes in working capital:
Inventories	325	970
Trade and other receivables	(2,392)	(5,605)
Trade and other payables	(5,295)	(5,043)
Cash generated from operations	30,493	28,167
Interest paid on bank overdrafts	(27)	(6)
Interest paid on lease liabilities	(736)	(818)
Tax paid	(1,887)	(1,507)
Payments under voluntary retirement scheme	(1,713)	(954)
Payments in relation to pension obligations	-	(40)
Net cash from operating activities	26,130	24,842

Condensed Consolidated Interim Financial Statements

Statement of cash flows For the period 1 January 2020 to 30 June 2020

	Six months ended 30 Jun 2020 Unaudited €000	Six months ended 30 Jun 2019 Unaudited €000
Cash flows from investing activities Payments to acquire property, plant and equipment and intangible assets Proceeds from disposal of property right Proceeds from disposal of non-controlling	(29,975) -	(16,939) 500
interest in subsidiary	-	47,349
Net cash (used in)/from investing activities	(29,975)	30,910
Cash flows from financing activities
Repayment of bank and other loans	(3,693)	(5,280)
Proceeds from bank and other loans	11,600	5,400
Principal elements of lease payments	(3,058)	(3,123)
Dividends paid	(15)	(55,207)
Dividends paid to non-controlling shareholders Loan interest paid	(2,151) (656)	- (514)
Net cash from/(used) in financing activities	2,027	(58,724)
Net movements in cash and cash equivalents	(1,818)	(2,972)
Cash and cash equivalents at beginning of period	8,681	4,693
Exchange differences on cash and cash equivalents	(14)	2
Movement in cash pledged as guarantees	(13)	(15)
Cash and cash equivalents at end of period	6,836	1,708

The notes on pages 11 to 20 are an integral part of these condensed consolidated interim financial statements.

Condensed Consolidated Interim Financial Statements

Notes to the Condensed Consolidated Interim Financial Statements For the period 1 January 2020 to 30 June 2020

1 General information

GO p.l.c. ("the Company") is a limited liability company domiciled and incorporated in Malta. The condensed consolidated interim financial statements of the Company as at 30 June 2020 and for the six-month period then ended comprise the Company and its subsidiaries (together referred to as the "Group"). The Group is Malta's leading integrated telecommunications services provider and its high-speed networks form the backbone of the island's modern communications infrastructure. The services provided by the Group include fixed-line and mobile telephony, data and TV services for consumers and business clients. The Group also provides business clients with data centre facilities and ICT solutions.

The Group also operates in Cyprus through Cablenet Communication Systems Limited ("Cablenet") which provides broadband, cable TV and telephony services to consumers and business clients.

The Company also has an interest in an associate, Forthnet S.A. registered in Greece, which provides fixed-line telephony, broadband and satellite TV services in Greece.

The consolidated financial statements of the Group as at and for the year ended 31 December 2019 are available upon request from the Company's registered office at Fra Diegu Street, Marsa, MRS 1501, Malta. They are also available for viewing on its website at www.go.com.mt.

These condensed consolidated interim financial statements were approved for issue by the Board of directors on 7 August 2020.

The condensed consolidated interim financial statements have been reviewed in accordance with the requirements of ISRE 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity".

2 Basis of preparation

The condensed consolidated interim financial statements as at and for the six-month period ended 30 June 2020 has been prepared in accordance with International Financial Reporting Standards ("IFRSs") as adopted by the EU applicable to interim financial reporting (International Accounting Standard 34, "Interim Financial Reporting"). The condensed consolidated interim financial statements information should be read in conjunction with the annual financial statements for the year ended 31 December 2019, which have been prepared in accordance with IFRSs as adopted by the EU.

(a) Accounting policies

The accounting policies applied are consistent with those of the annual financial statements for the year ended 31 December 2019, as described in those annual financial statements.

New and amended standards adopted by the Group

A number of new or amended standards became applicable for the current reporting period. The impact of the adoption of these revisions on the Group's accounting policies and on the Group's financial results is insignificant.

Condensed Consolidated Interim Financial Statements

Notes to the Condensed Consolidated Interim Financial Statements For the period 1 January 2020 to 30 June 2020

2 Basis of preparation - continued

Impact of standards issued but not yet applied by the Group

Certain new standards, amendments and interpretations to existing standards have been published by the date of authorisation for issue of these financial statements but are mandatory for the Group's accounting periods beginning after 1 January 2020. The Group has not early adopted these revisions to the requirements of IFRSs as adopted by the EU, and the Company's directors are of the opinion that there are no requirements that will have a possible significant impact on the Group's financial statements in the period of initial application.

(b) Financial position of the Group

As at 30 June 2020, the Group's current liabilities exceeded its current assets by €25.7 million (2019: €34.3 million). However, the Group envisages that a significant level of earnings will be generated throughout the forthcoming year, through its cash generating units, which will enable the Group to manage effectively its forecasted cash flows and liquidity needs. The Group has unutilised banking facilities which are considered in the context of the Group's liquidity management programme. These factors are embedded within the Group's cash flow forecasts.

(c) Impact of COVID-19

Following the outbreak of the COVID-19 pandemic, the Group implemented strategic initiatives aimed at ensuring continuity of service and aimed at mitigating the potential negative impact on the Group's business. Despite the challenges presented by the outbreak of this pandemic, the Group has effectively managed the impact on its operations and financial performance to date, taking cognisance of the Group's financial results for the six month period ended 30 June 2020. In this regard and as detailed further in Note 3, the directors are of the opinion that there are no impairment indicators in respect of the carrying value of the Group's cash-generating units, to which tangible and intangible assets are allocated. The directors also believe that the credit quality of the Group's customer portfolio has not deteriorated in a significant manner, and therefore it was not deemed necessary to materially revise the expected credit loss assessment for the Group's receivables. The directors firmly believe that there is no material uncertainty which may cast significant doubt on the Group's ability to continue as a going concern, also based on the financial results and financial position of the Group. The directors continue to adopt the going concern assumption in the preparation of the financial statements.

3 Fair values of financial and non-financial instruments

Financial instruments

The Group is required to disclose fair value measurements by level of a fair value measurement hierarchy for financial instruments (Level 1, 2 or 3). The different levels of the fair value hierarchy are defined as fair value measurements using:

• Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1).
• Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly i.e. as prices, or indirectly i.e. derived from prices (Level 2).
• Inputs for the asset or liability that are not based on observable market data i.e. unobservable inputs (Level 3).

Condensed Consolidated Interim Financial Statements

Notes to the Condensed Consolidated Interim Financial Statements For the period 1 January 2020 to 30 June 2020

3 Fair values of financial and non-financial instruments - continued

At 30 June 2020 and 31 December 2019, the carrying amounts of certain financial instruments not carried at fair value, principally comprising cash at bank, receivables, payables, accrued expenses and short-term borrowings, reflected in the financial statements are reasonable estimates of fair value in view of the nature of these instruments or the relatively short period of time between the origination of the instruments and their expected realisation. The fair value of advances to related parties and other balances with related parties, which are short-term or repayable on demand, is equivalent to their carrying amount.

The fair value of non-current financial instruments, mainly borrowings and lease liabilities, is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the Group for similar financial instruments. The fair value of the Group's non-current floating interest rate bank borrowings and lease liabilities at the end of the reporting period is not significantly different from the carrying amounts. The current market interest rates utilised for discounting purposes, which were almost equivalent to the respective instruments' contractual or related interest rates, are deemed observable and accordingly these fair value estimates have been categorised as Level 2.

Non-financial instruments

Intangible assets held by the Group mainly consist of goodwill arising on the excess of the purchase price attributable to acquisitions in previous years over the carrying amount of net assets acquired allocated to the identifiable assets and liabilities of the acquired entity. The Group makes judgements and estimates in relation to the fair value allocation of the purchase price. The amount of goodwill initially recognised as a result of a business combination is dependent on the allocation of the purchase price to the fair value of the identifiable assets acquired and the liabilities assumed. The determination of the fair value of the assets and liabilities is based, to a considerable extent, on management's judgement. Allocation of the purchase price affects the results of the Group as intangible assets with a finite life are amortised, whereas intangible assets with an indefinite life and goodwill are not amortised.

The recoverable amount of the cash-generating units (CGUs), to which intangible assets were allocated, as at 30 June 2020 was determined based on value in use (VIU) calculations consistent with the methods used as at 31 December 2019 (for further details refer to Note 8 of the 2019 annual report). Following the outbreak of COVID-19 in 2020, market conditions have affected business confidence and spending patterns. In the circumstances, management determined the deterioration in performance or long-term growth rates which would need to occur, or the increase in discount rate which would need to be applied to the models, that may lead to impairment of goodwill or other intangible assets. The VIU of the CGUs, as a result of this assessment, remains in excess of the carrying amounts by a comfortable headroom.

Condensed Consolidated Interim Financial Statements

Notes to the Condensed Consolidated Interim Financial Statements For the period 1 January 2020 to 30 June 2020

4 Segment information

4.1 Operating segments

The Group has three reportable segments, which are effectively the Group's key and distinct strategic business units and cash-generating units, as they represent the lowest level at which separately identifiable cash flows can be identified. The strategic business units are managed separately with their own separate management structure and board of directors.

The following summary describes the operations in each of the Group's reportable segments:

MaltaTelecommunication Services (Malta Telecommunications CGU) comprise the Group's fixedline telephony services, mobile telephony services, digital television services, sale of broadband, internet services and other business communication solutions provided within Malta.

Data Centre Services (Data Centre CGU) comprise the Group's operations of BMITT, which provides data centre facilities and ICT solutions in Malta.

Cyprus Telecommunication Services (Cyprus Telecommunications CGU) comprise the Group's operations of the Cypriot subsidiary, Cablenet Communications Systems Limited. The company provides broadband, cable television and telephony services. The operations of the Cypriot subsidiary constitute a reportable segment in view of the specific nature and characteristics of the Cypriot telecommunications sector, giving rise to a varied degree of business risks and returns.

The Group's internal reporting to the Board of Directors and Senior Management is analysed according to these three segments. For each of these three strategic business units, the Board of Directors reviews internal management reports at least on a monthly basis.

Condensed Consolidated Interim Financial Statements

Notes to the Condensed Consolidated Interim Financial Statements For the period 1 January 2020 to 30 June 2020

4 Segment information - continued

4.1 Operating segments – continued

	Malta Operations			Cyprus Operations		Total
	Telecommunications		Data Centre		Telecommunications
		30 June
Unaudited	2020 €000	2019 €000	2020 €000	2019 €000	2020 €000	2019 €000	2020 €000	2019 €000
Revenue from external customers Inter-segment revenue	58,066 (843)	57,254 (767)	11,709 (581)	11,167 (377)	23,205 -	17,622 -	92,980 (1,424)	86,043 (1,144)
Revenue from external customers	57,223	56,487	11,128	10,790	23,205	17,622	91,556	84,899
Reportable segment profit before tax	6,228	8,242	4,147	4,134	(1,404)	553	8,971	12,929
Reportable segment assets	197,408	196,641	34,799	33,074	106,110	105,956	338,317	335,671
Reportable segment liabilities	134,796	140,920	16,157	12,579	58,328	56,602	209,281	210,101

Condensed Consolidated Interim Financial Statements

Notes to the Condensed Consolidated Interim Financial Statements For the period 1 January 2020 to 30 June 2020

4 Segment information - continued

4.1 Operating segments - continued

A reconciliation of reportable segment results, assets and liabilities, to the amounts presented in the consolidated financial statements, is as follows:

	30 Jun 2020 Unaudited €000	30 Jun 2019 Unaudited €000
Profit Total profit for reportable segments and consolidated profit
before tax	8,971	12,929
	30 Jun 2020 Unaudited €000	31 Dec 2019 Audited €000
Assets
Total assets for reportable segments	338,317	335,671
Inter-segment eliminations	(10,625)	(7,935)
Consolidated total assets	327,692	327,736
Liabilities Total liabilities for reportable segments Inter-segment eliminations	209,281 (10,625)	210,101 (7,935)
Consolidated total liabilities	198,656	202,166

4.2 Information about geographical segments

The Group's revenues are derived from operations carried out in Malta and in Cyprus. The Telecommunications segment for both Malta and Cyprus also derives revenue from incoming interconnect traffic and inbound roaming from foreign operators worldwide. Considering the nature of the Group's activities, its non-current assets are predominantly located in Malta and Cyprus.

4.3 Information about major customers

The Group does not have any particular major customer, as it largely derives revenue from a significant number of customers availing of its services. Accordingly, the Group does not deem necessary any relevant disclosures in respect of reliance on major customers.

Condensed Consolidated Interim Financial Statements

Notes to the Condensed Consolidated Interim Financial Statements For the period 1 January 2020 to 30 June 2020

5 Property, plant and equipment

(a) Acquisitions and disposals

During the six months ended 30 June 2020, the Group acquired assets, primarily plant and equipment, with a cost of €23.4 million (six months ended 30 June 2019: €16.3 million).

(b) Capital commitments

The following are capital commitments of the Group:

	30 Jun 2020 Unaudited €000	31 Dec 2019 Audited €000
Contracted for: Property, plant and equipment Intangible assets	6,384 5,801	8,432 32,069
Authorised but not yet contracted for:
Property, plant and equipment	6,147	4,301
	18,332	44,802

6 Provisions for pensions

As disclosed in the 2019 annual financial statements, GO p.l.c. was required to set up a pension scheme in favour of ex-Cable and Wireless employees following a judgement by the Court of Appeal on 7 July 2008. Subsequently the Company also received other claims for pension rights from a number of employees and former employees. The Company established the scheme on 1 July 2009 with effect from 1 January 1975. Subsequent to the setting up of the scheme, the Company offered a number of beneficiaries a one-time lump sum settlement in lieu of joining the scheme. As at 30 June 2020, the Company estimated that its obligations towards the remaining potential beneficiaries amounted to €5.1 million (31 December 2019: €5.2 million).

7 Operating profit

During the interim period the following items of unusual nature, size or incidence have been charged/(credited) to operating profit:

	30 Jun 2020 Unaudited €000	30 Jun 2019 Unaudited €000
Voluntary retirement costs Expenses in relation to disposal of non-controlling interest in	1,573	950
subsidiary	-	1,534
Gain on transactions in property rights	-	(900)

Condensed Consolidated Interim Financial Statements

Notes to the Condensed Consolidated Interim Financial Statements For the period 1 January 2020 to 30 June 2020

8 Dividends

A dividend in respect of the year ended 31 December 2019 of €0.10 (2019: €0.14) per share, amounting to €10,131,048 (2019: €14,183,468), was proposed by the Board of Directors. The 2019 dividend was approved for payment by the Board of Directors during the Annual General Meeting held on 28 July 2020 and accordingly was reflected within the financial statements subsequent to 30 June 2020.

On 8 March 2019, the Board of Directors approved the payment of a special dividend of €0.41 (2018: nil), net of taxation, per share for the year 2019. The payment of this special interim dividend amounting to €41,537,300 was effected in view of the profits generated from the sale by the Company of its 49% shareholding in BMITT. This dividend was paid on 30 May 2019.

9 Contingencies

There were no major changes in the contingencies of the Company and its subsidiaries from those disclosed in the consolidated financial statements of the Group for the year ended 31 December 2019.

10 Related party transactions

(a) Parent and ultimate controlling party

The Company and its subsidiaries have a related party relationship with Société Nationale des Télécommunications (Tunisie Telecom), the Company's ultimate parent, related entities ultimately controlled by Tunisie Telecom, together with the Company's directors (key management personnel). 65.4% of the issued share capital of the Company is held by TTML Limited, a wholly owned subsidiary of Tunisie Telecom, which is registered in Malta. Dubai Holding LLC (GO's former ultimate parent) and all entities ultimately controlled by it are still considered to be related parties, in view of Dubai Holding LLC's interest in and significant influence on GO's current ultimate parent. The Tunisian Government holds a 65% shareholding in Tunisie Telecom, and Emirates International Telecommunications ("EIT"), a subsidiary of Dubai Holding LLC, owns the other 35%.

(b) Related party transactions

Consistent with the disclosures in the audited financial statements for the year ended 31 December 2019, the Group has a related party relationship with its ultimate parent and entities ultimately controlled by it (see above); key management personnel together with close members of their family and entities controlled by them.

Condensed Consolidated Interim Financial Statements

Notes to the Condensed Consolidated Interim Financial Statements For the period 1 January 2020 to 30 June 2020

10 Related party transactions - continued

(b) Related party transactions - continued

The principal related party transactions during the six-month period under review comprise:

	Six months ended 30 Jun 2020 Unaudited €000	Six months ended 30 Jun 2019 Unaudited €000
Current ultimate parent and related entities Dividends paid to	-	36,441
Former ultimate parent and related entities Services provided by Payments effected relating to leased assets	44 1,260	253 1,405

The principal balances with related parties are analysed as follows:

		30 Jun 2020 31 Dec 2019
	Unaudited	Audited
	€000	€000
Current ultimate parent and related entities
Amounts payable to	(31)	(34)
Amounts receivable from	55	70

11 Transactions relating to non-controlling interests

Disposal of non-controlling stake in subsidiary

On 7 January 2019, the Company announced that an application was made to the Listing Authority for all the shares of its subsidiary, BMITT, to be admitted to listing on a regulated market and a prospectus was approved for the initial public offering of up to 49% of the ordinary shares of BMITT at an offer price of 49 euro cents per share.

Shares in BMITT were admitted to listing on the Official List of the Malta Stock Exchange on 15 February 2019, whereas trading commenced on 18 February 2019.

On 7 February 2019, GO announced that the offer for sale of 99,761,701 ordinary shares in BMITT at the offer price of 49 euro cents per share was oversubscribed and accordingly GO was disposed 49% of its shareholding in BMITT, thus retaining control over the subsidiary.

Condensed Consolidated Interim Financial Statements

Notes to the Condensed Consolidated Interim Financial Statements For the period 1 January 2020 to 30 June 2020

11 Transactions relating to non-controlling interests - continued

The impact of the disposal of the non-controlling stake on GO's consolidated financial position upon disposal is reflected in the tables below:

	30 Jun 2019 Unaudited €000
Proceeds received Non-controlling interests recognised upon disposal	48,883 (3,593)
Gain on disposal recognised directly in equity	45,290

The excess of consideration received was recognised as a gain on disposal of non-controlling interest in subsidiary, directly in equity. Expenses in relation to the disposal of non-controlling interest in subsidiary amounting to €1,534,000 were recognised within "Administrative and other related expenses" in the income statement for the period ended 30 June 2019. The net of the proceeds received of €48,883,000 and the related expenses of €1,534,000, is disclosed within cash generated from investing activities within the cash flow statement.

12 Events after the end of the reporting period

On 3 July 2020, GO announced that Cablenet's board of directors has authorised the submission of an Application for Authorisation for Admissibility to Listing to the Listing Authority requesting the approval of a prospectus in relation to a proposed public issue of 4% unsecured bonds with an aggregate principal amount of up to €40 million on the Malta Stock Exchange.

On 10 July 2020, Cablenet submitted the Application for Authorisation for Admissibility to Listing to the Listing Authority requesting the approval of a prospectus in relation to the proposed public issue of the bonds. The Listing Authority indicated its approval on 21 July 2020.

Statement pursuant to Listing Rule 5.75.3

I hereby confirm that to the best of my knowledge:

• the condensed consolidated interim financial statements give a true and fair view of the financial position of the Group as at 30 June 2020, and of its financial performance and cash flows for the six-month period then ended in accordance with International Financial Reporting Standards as adopted by the EU applicable to interim financial reporting (International Accounting Standard 34, "Interim Financial Reporting");
• the Interim Directors' report includes a fair review of the information required in terms of Listing Rules 5.81 to 5.84.

Faker Hnid

Director

7 August 2020

Independent auditor's report

To the Board of Directors of GO p.l.c. Report on Review of Condensed Consolidated Interim Financial Information

Introduction

We have reviewed the accompanying condensed consolidated interim statement of financial position of GO p.l.c. and its subsidiaries (the Group) as at 30 June 2020, the related condensed consolidated income statement and statements of comprehensive income, changes in equity and cash flows for the six-month period then ended and other explanatory notes ("the condensed consolidated interim financial statements"). The directors are responsible for the preparation and fair presentation of these condensed consolidated interim financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the EU applicable to interim financial reporting (International Accounting Standard 34 "Interim Financial Reporting"). Our responsibility is to express a conclusion on these condensed consolidated interim financial statements based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of condensed consolidated interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34 "Interim Financial Reporting".

PricewaterhouseCoopers

78 Mill Street Zone 5, Central Business District Qormi Malta

Fabio Axisa Partner

7 August 2020

a) The maintenance and integrity of the GO p.l.c. website is the responsibility of the Directors of the Company; the work carried out by the auditors does not involve consideration of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the condensed consolidated interim financial information since this was initially presented on the website. b) Legislation in Malta governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.