The Ordinary General Assembly of Vodafone Egypt has decided to distribute profits worth EGP 2bn, which it earned over fiscal year (FY) 2019/20.
This entails that Telecom Egypt (TE) will receive EGP 900m in dividends for its 45% stake in the global telecommunications company’s Egypt operations.
The Board of Directors at TE has decided to increase the profit distribution proposal for FY 2019/20, to reach EGP 0.75 per share instead of the previous EGP 0.50 per share.
This reflects a 50% increase over the previous proposal, equivalent to nearly half of the company’s share in Vodafone Egypt dividends and a total distribution of 86%. TE owns a 45% stake in Vodafone Egypt, compared to 55% for the Vodafone Global Group.
TE said that the new proposal for dividend distribution will be presented during its ordinary general assembly, which is scheduled for 29 March.
Adel Hamed, Managing Director and CEO at the Egyptian company, confirmed that the increase in dividends distribution to shareholders was based on the distinguished operating performance throughout the year and the dividends of Vodafone Egypt.
Hamed added that TE had communicated extensively with Vodafone International Group during the last period, to ensure that the value of its strategic investment in Vodafone Egypt reflected on the wealth of its shareholders. He also said that TE’s proposed distribution amounted to three times the distribution of last year.
“With the continued growth in operating performance and the rationalization of capital expenditures, as well as the continuation of dividends from Vodafone Egypt, the cash flow of TE will increase, which will enable it to distribute regular profits to its shareholders,” he said.
In another context, TE achieved a leap in its revenues during FY 2019/20 to nearly EGP 32bn. Total consolidated revenues amounted to EGP 31.9bn, a growth rate of 24% compared to the previous year, mainly driven by the outstanding revenues of data services.
Data services achieved a growth of 39% compared to the same period of the previous year, which represented 53% of the total growth in revenues.