Due to the scarcity of forex in Nigeria and other markets where it operates, MTN Group has suspended dividend payout for the 2020 financial year, its annual report published on Wednesday stated.
Other reasons for the suspension of dividend given by MTN include the timing of proceeds from the asset realisation programme and the impact of Covid-19 pandemic.
However, the telecommunications company reported a strong set of results for the 2020 financial year, adding 29 million customers, growing adjusted headline earnings per share by 52 per cent and more than doubling operating cash flow to R28.3-billion.
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The report stated that MTN Board would consider returning further cash to shareholders in the form of special dividends or share repurchases after the release of 2021 full year results.
The report read in part, “In light of these material uncertainties, the board has also suspended the dividend policy and anticipates communicating a revised medium-term dividend policy when we announce our 2021 results in March 2022.”
“During this transition, the Board anticipates paying a total ordinary dividend of at least 260cps for the 2021 financial year. We anticipate that this will be a final dividend, with no interim dividend for FY 2021.”
MTN also announced a new strategy, called Ambition 2025, to “accelerate growth and unlock the value of its infrastructure assets and platforms”.
