MTel shareholders put earnings into profit reserves rather than pay dividend
Shareholders of Magyar Telekom (MTel), the Hungarian subsidiary of German telecom giant Deutsche Telekom, approved a proposal at an annual general meeting yesterday to place all of last yearʼs profit into profit reserves rather than pay a dividend, Hungarian news agency MTI reported.
MTel had after-tax profit of HUF 36.7 bln last year, according to Hungarian Accounting Standards, MTI said, adding that the companyʼs board decided not to propose a dividend because of a fall in free cashflow last year and to keep the gearing ratio at 30-40%
CEO Christopher Mattheisen told shareholders that the company had held or expanded its market share in all of its strategic markets last year. Revenue rose and churn was "radically reduced" from earlier years, he added.
The CEO acknowledged the impact on MTelʼs performance of the favorable economic environment and government measures that have boosted household consumption.
Shareholders authorized MTelʼs board to buy treasury shares on the bourse for a period of 18 months. Total treasury share stock is not to exceed 10% of registered capital. MTelʼs treasury share stock was just 0.04% of registered capital at the end of March.
Hungary Gasoline Prices 3% Over Regional Avg
Gov't Wants Sustainable Business Model for Magyar Posta
120,000 Guest Workers Employed in Hungary
Budapest Airport Wins 'Best Airport in Eastern Europe' for 1...
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
