Back on track
04 Apr 17
With funding in place, GO is stepping up the implementation of its network and we reduce FY17 EPS forecasts to capture this profile as well as the new €1.75m loan, but leave FY18 estimates largely unchanged. A pick-up in the pace of subscriber additions could trigger upside to our base case DCF of €2.8/share. In addition, with 3.5GHz now earmarked for 5G services, GO’s spectrum could be used for a wider service offering in the longer term and may put it in focus for operators looking to secure 5G capacity.
Rights issue for accelerated network roll-out
10 Oct 16
The proposed €4m rights issue, if successful, will be used to re-accelerate the roll-out of GO’s high speed network both within its existing regions and beyond, via its new agreement with Enel Open Fibre. While the offer is dilutive to earnings, the share price has been heavily marked down and appears to discount a continued slowing of subscriber growth, rather than the pick-up we expect as the network roll-out gets back on track.
24 Mar 16
GO internet’s (GO’s) FY15 results reflect the steady expansion of its network. FY16 has started somewhat slower and we now anticipate a more measured network expansion ahead of the funding from its majority shareholder and the proposed capital increase. We reduce our forecasts and valuation accordingly.
GOing for more growth
17 Dec 15
GO internet (GO) is provisioning its 100Mbps service, which should drive ongoing subscriber growth. It may also have the opportunity to increase its footprint if it decides to participate in spectrum auctions during 2016. With its proposed €8m fund-raising, management seems to be positioning for this. However, the shares are discounting a slowdown in growth, rather than the prospects for a company gearing up for growth.
LTE network a GO-GO!
25 Sep 15
GO Internet’s H1 results show steady expansion in subscribers with solid average revenue per user (ARPU). The roll-out of its 100Mbps equipment has now started and we expect to see acceleration in the pace of growth as a result. The shares do not yet reflect the progress GO Internet is making in its current regions and the possibility that it will be allocated additional spectrum next year, which would enable it to expand further afield, adds further upward valuation potential.