Cairo – Mubasher: The board of directors of Telecom Egypt decided to raise its proposed dividend for 2020 by 50% to EGP 0.75 per share instead of EGP 0.50.
The dividend represents about 50% of Vodafone Egypt’s distribution to Telecom Egypt and a total payout ratio of 86% for Telecom Egypt, according to a bourse disclosure on Tuesday.
On 18 March, Vodafone Egypt’s shareholders approved a dividend of EGP 2 billion, of which Telecom Egypt’s share stands at about EGP 900 million.
The proposal will be referred to the telecom operator’s ordinary general meeting (OGM), which will be held on 29 March, for approval.
Adel Hamed, Telecom Egypt’s Managing Director and CEO, said: “The proposed distribution is three times our distribution last year, and we expect our ongoing operational growth, coupled with capital expenditures (CapEx) rationalisation and continued distribution from Vodafone Egypt, to lead to free cash flow (FCF) improvements that would allow us to continue distributing a regular dividend stream to our shareholders.”
In 2020, Telecom Egypt’s net profits increased by 10% year-on-year (YoY) to EGP 4.9 billion.
