Are you sure?

Magyar Telekom board proposes HUF 50-per-share dividend

The board of Magyar Telekom will propose to shareholders payment of a HUF 50-per-share dividend on 2010 profit, the telco said.

Last year, Magyar Telekom paid HUF 74 per share on 2009 profit.

The proposed dividend is in line with Magyar Telekom's dividend policy of maintaining its net debt ratio in the 30-40% range. At the same time, it reflects the company's consolidate financial position and cash flow generation in 2010 as well as the impact of a crisis tax levied on telecommunications companies, the company said.

The board will also ask shareholders for a mandate to buy treasury shares up to 10% of registered capital to "supplement Magyar Telekom's current shareholder remuneration policy in line with international practice," the company said. The board "believes dividend should remain the main method for shareholder remuneration," it added.

The mandate would be valid for 18 months from the date of approval.

Shortly after publishing its 2010 results, investment agency Concorde released a statement recommending Magyar Telekom shares for buying.