Date:20/12/11
Telekom Austria on Friday became the latest European telecoms operator to lower planned dividend payments on the back of a deteriorating macro-economic situation.
The Austrian incumbent halved its planned dividend payment for 2011 and 2012 to €0.38 per share, noting that as of 2013 its payout ratio remains at 55% of free cash flow.
The move comes just days after Spain's Telefonica reduced its dividends for 2012 and 2013. It will maintain its 2011 dividend at €1.60 per share, falling to €1.50 the following year and staying at a similar level in 2013.
Financial analysts, including Nomura and JP Morgan, warned that other telcos would follow suit, naming Belgacom and Telecom Italia as the most likely candidates, Dow Jones Newswires reported, adding that Deutsche Telekom quashed speculation that it would make a similar move.
Telekom Austria said the economy and volatile forex markets will continue to affect its group operations for the foreseeable future. It also noted that planned investments – in forthcoming spectrum auctions, for example – will put pressure on cash flows and increase the company's leverage.
"Maintaining a stable investment grade rating of BBB (stable) remains the key parameter of Telekom Austria Group's cash use policy," the operator said
Telekom Austria cuts dividend
Telekom Austria on Friday became the latest European telecoms operator to lower planned dividend payments on the back of a deteriorating macro-economic situation.The Austrian incumbent halved its planned dividend payment for 2011 and 2012 to €0.38 per share, noting that as of 2013 its payout ratio remains at 55% of free cash flow.
The move comes just days after Spain's Telefonica reduced its dividends for 2012 and 2013. It will maintain its 2011 dividend at €1.60 per share, falling to €1.50 the following year and staying at a similar level in 2013.
Financial analysts, including Nomura and JP Morgan, warned that other telcos would follow suit, naming Belgacom and Telecom Italia as the most likely candidates, Dow Jones Newswires reported, adding that Deutsche Telekom quashed speculation that it would make a similar move.
Telekom Austria said the economy and volatile forex markets will continue to affect its group operations for the foreseeable future. It also noted that planned investments – in forthcoming spectrum auctions, for example – will put pressure on cash flows and increase the company's leverage.
"Maintaining a stable investment grade rating of BBB (stable) remains the key parameter of Telekom Austria Group's cash use policy," the operator said
Views: 1131
©ictnews.az. All rights reserved.
Similar news
- Mobile operators of national market to reduce roaming tariffs
- Iran vows to unplug Internet
- China Targeting Telecoms in Corruption Probe
- Bangladesh to use electronic voting system for next elections
- Philippine IT sector to launch five-year digital strategy plan
- Russian Premier Vladimir Putin meets ITU Secretary-General Hamadoun Touré
- US lawmakers propose to regulate use of geolocation data
- Unlimited mobile data plans dying as telcos gear up for cloud future
- Europe at risk of falling behind US and Asia on 4G use
- Netherlands first to regulate on net neutrality
- Korean Co Takes Aim At Display Patents
- Regulators, Banks Look for IT Hires After Breakdowns
- Electron transactions spreading
- Schools in remote rural areas will connect to the single database via network without SIM
- Obama to Personally Tweet From Twitter Account
