Manx Telecom Plc (AIM:MANX), the leading communication solutions provider on the Isle of Man, is pleased to provide this pre-close trading update prior to the release of its interim results for the first six months of 2018, due to be announced on 12 September 2018.
The Board confirms that trading during the first half of 2018 has been in line with management expectations and has continued to generate positive free cashflow, supporting the increased dividend announced with our 2017 results.
The Company’s core domestic business of Fixed Line, Broadband, Data and Mobile performed well, delivering another solid revenue performance. Our high-speed broadband services are available to 93% of customer premises on the island, with penetration of this premium service in our customer base having now reached 56%. The rollout of our ultrafast FTTP broadband service (‘Fibre to the Premise’) has progressed well with over 2,500 premises now passed increasing to 4,600 due to be passed by the year end. The Mobile business performed as expected with good take up of our UK and EU roaming package, Smartroam, introduced last year.
Our Global Solutions business continues to experience further growth, whilst Data Centre revenue remained broadly flat. Both of these areas show opportunity for growth through the remainder of the year.
The Company’s Transformation Programme remains on track with the associated benefits starting to accrue and further investment made into our systems and processes. As previously stated these exceptional costs will continue into the second half of the year as the programme comes to completion.
Vannin Ventures, our business incubator, continues to provide exciting opportunities with significant medium-term growth expected from its investment in Goshawk Communications and the development of its telecom solution for those with hearing difficulties. This is progressing well, with good results seen from our current pilot, ahead of an Isle of Man launch in the second half of the year and subsequent launch in the UK in 2019.