Leading telecom operator Grameenphone Limited has recommended a final cash dividend of Tk17 per share for the year 2024 on top of an interim cash dividend of Tk16 per share earlier, resulting in its highest total cash dividends ever announced.
The declaration came on Monday after the company held its board meeting to consider the audited financial statements for the preceding year.
Grameenphone registered net earnings of Tk3,654 crore or Tk26.89 per share in 2024, growing by 9.7% over the previous year, due to an additional provision made in 2023 for regulatory disputes, according to the latest financial statements.
The company reported earnings of Tk5.01 per share for the October-December quarter, which was Tk4.34 per share in the same quarter last year.
Grameenphone, however, witnessed a decline in its revenue during the quarter amid challenging macroeconomic conditions and high inflation, said a report published by the company on its website.
The telecom operator will be paying out an excess of Tk6.11 per share in total cash dividends for 2024 over its earnings of Tk26.89 per share during the year.
Historically the company has maintained a healthy payout ratio of approximately 100% but macroeconomic headwinds and company-specific challenges led to a lower payout in 2023, said Anik Mahmood Ibne Anwar, equity research analyst at UCB Stock Brokerage Limited.
In 2024, the company increased its payout ratio, aligning it more closely with past trends, supported by strong and well-covered cash flows, he added.
The record date for the final cash dividend has been set on February 26, said a press release.
Date for the annual general meeting has been fixed on April 23, which will be held on a digital platform.
Currently, the sponsors and directors of the company hold 90% of its shares, while institutional investors 6.31%, foreign investors 0.98% and general investors 2.71%.
Grameenphone was listed with the bourses in the year 2009.
