LONDON (Alliance News) - Manx Telecom PLC Thursday proposed its maiden interim dividend and expressed confidence for meeting market expectations for growth in the full-year, as profit in the half-year to the end of June was hit by listing costs.
The Isle of Man-focused communications provider proposed a maiden interim dividend of 3.3 pence; it plans to announce a final dividend of 6.6 pence with its full-year results.
The company posted a pretax loss of GBP5.1 million, swung from a profit of GBP315,000, hit by exceptional costs relating to its listing on AIM in February and writing off loan costs of GBP4.5 million, which offset a rise in revenue to GBP39.5 million from GBP37.9 million.
Stripping out these costs, pretax profit rose to GBP7.0 million from GBP3.6 million, said the company.
Revenue growth was boosted by the expansion of its Global Solutions business, and its ongoing investment in its fibre-to-the-cabinet network.
In Fixed, Broadband and Data services, revenues rose 1.9%, boosted by the continued roll out of high speed broadband.
Mobile revenues declined 4.2%, due to increased roaming discounts, and lower mobile termination rates agreed with the regulator in 2013. The company launched its 4G network, replacing its existing 2G and 3G services, at the end of July. It said its main competitor is due to launch 4G in November, although it has been granted an extension to March 2015.
Global Solutions revenues were up 29.8% as the company funnelled resources and focus into the business. It saw strong growth from its machine to machine markets, the strongest signal mobile market, and the Mobile Virtual Network Enabler traveller market, which more than offset declines in revenues in its wholesale voice market.
Manx said that the completion of two key capital projects, the first phase of its new GBP10 million Greenhill Data Centre and the launch of 4G, gives it a good platform for the remainder of the year and 2015. It expects current trading momentum to continue into the second-half.
"These developments have contributed to a six month performance that helps to underpin our confidence for the Company's longer term prospects," said Chief Executive Mike Dee in a statement.
Shares in Manx were trading up 1.0% at 175.25 pence Thursday morning.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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