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Magyar Telekom board approves HUF 15.3 bln dividend

Telco

The board of Magyar Telekom approved payment of a HUF 15.3 billion dividend on 2020 earnings at a meeting on Friday, state news wire MTI reports.

The dividend will be paid from MTel's 2020 after-tax profit of HUF 41.6 bln.

Empowered by a government decree, MTel's board approved AGM resolutions in lieu of shareholders, because of a ban on gatherings to contain the spread of the coronavirus.

The board also adopted a resolution authorizing it, for 18 months, to purchase MTel shares for shareholder remuneration and employee incentive plans, with a treasury share threshold of 10% of share capital.

MTel said in February, after releasing Q4 earnings, that its board would propose the HUF 15.3 bln dividend, equivalent to HUF 15 per share, as well as a HUF 10.2 bln share buyback program.

Chairman Robert Hauber acknowledged at the time that the proposed level of shareholder remuneration, equivalent to HUF 25 per share, was "significantly higher than the free cash flow generation of the company in 2020 thus further increasing indebtedness", but said that "dedicated improvement and development efforts" had put MTel "on solid foundations with further growth potential ahead", adding that the company aimed to "put shareholder remuneration on a progressive trajectory moving forward".

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