Manx Telecom treading water in first half results

The AIM-traded firm said fixed Line, broadband and data revenues were up 1.3%, driven by good take-up of high speed broadband, and core mobile revenues were up 4.7%, but offset by lower roaming charges.

Its board also claimed strong growth in Global Solutions revenues, up 12.4%, although data centre revenues were down 15.7% due to a decline in low margin kit sales and customer consolidation.

EBITDA was in line with last year at £13.8m, and underlying profit before tax was slightly ahead at £8.3m, against £8.2m in 2015.

Manx Telecom’s operational cash flow was £10.1m, down from £10.4m, with free cash flow up 32.2% to £8.0m.

Net debt reduced to £53.1m from £56.1m during the period.

The company’s board declared an interim dividend of 3.7p, up from 3.5p, in line with its progressive dividend policy.

“We have had a solid six months of trading which saw the group continue to make progress with its strategic objectives and perform in line with the board's expectations,” said chief executive Gary Lamb.

“Demand for superfast broadband and the increased speeds offered by 4G mobile services continue to grow and help drive growth in our highly cash generative core.

“We recently introduced 4G roaming to our customers, as well as trialling superfast 4G+ during the summer period, underlying our commitment to bring exciting new products to our local market.”

Lamb said the company will continue to explore new ways to grow the business by leveraging its mobile technology platform and getting the most out of the range of talent amongst its employees.

“We are confident in the long term outlook for the business which continues to trade in line with the board's expectations for the full year.”