admin
Oliver Kazunga Senior Business Reporter
ZIMBABWE’S largest telecommunications company, Econet Wireless has declared a $13,3 million dividend to be shared among shareholders this year.
The firm’s profit after tax for the year ended February 29, 2016 was $40 million compared to $70 million, which was recorded last year.
Last year, the company declared a $15 million dividend.
In a notice to shareholders, Econet group company secretary Charles Banda said the dividend will be payable to members registered in its share register by the first week of August.
“The board of directors of Econet Wireless Zimbabwe Limited declared dividend of 0,90 United States cents per share, amounting to $13,3 million for the year ended 29 February 2016.
“The dividend is payable to members registered in the Share Register of Econet Wireless Zimbabwe,” he said.
The shares would be traded cum-dividend on the stock exchange up to the market day of July 29 and ex-dividend as from August 1, 2016.
Econet said dividend warrants will be posted or direct payments made on or about Friday, August 12, 2016.
“Withholding tax will be deducted at a rate of 10 percent, where applicable,” it said.
Banda said payments to foreign shareholders would be subject to exchange control approval and payment guidelines for foreign remittances.
“Foreign shareholders should appoint and make their own arrangements with a local bank of their choice to receive dividend on their behalf and to facilitate the foreign remittance for them,” he said.
Since the adoption of a multicurrency system in February 2009, a number of companies in the country have not been declaring dividends in an attempt to sustain their business operations.
According to Econet’s financial statement for the year ended February, 2016, the company’s revenues from broadband continue to increase, although at a slower rate of 9.7 percent.
For the period under review, the total revenue collected from broadband was $113 million, up by $10 million compared to the previous year.
The firm’s total revenue for the period ending February 29, 2016 was $641 million, down 14 percent from $746 million recorded in 2015.
Revenue from Econet’s mobile money transfer service, EcoCash continues to grow, recording $87 million compared to last year’s $73 million.
Online Reporter