The exchange rate for Airtel Africa’s 2023 final dividend has been set at N1485.99 per dollar.
The company declared earlier in the year that the final dividend for FY 2023–2024 would be 3.57 US cents per share.
Airtel’s final dividend in Naira, at this exchange rate, is approximately N53.05 per share, or a 2% dividend yield.
As per the group’s corporate notice, shareholders whose names are on the register at the close of business on June 21, 2024, will receive their dividend from Airtel Africa on July 26, 2024.
Dividends from Airtel for FY 2023 will amount to N276 billion
Airtel Africa will distribute N276 billion ($224 million) in dividends, even though the company reported a net loss of $89 million for the fiscal year that concluded on March 31, 2024.
In December 2023, the group had previously distributed an interim dividend of 2.38 US cents per share, calculated at an exchange rate of N858.24/$. The amount of Airtel’s intermediate dividend payout was N76.8 billion.
At a currency rate of N1485.99/$, the group’s last dividend payment of 3.57 US cents per share will come to N199.4 billion, making the total dividend payment of N276 billion.
The total dividend paid by Airtel, which is 5.95 US cents per share, is 9% more than the 5.45 US cents per share total dividend paid during the previous fiscal period. The entire dividend payout for 2023–2024 will be Naira equivalent to 130% more than the N120.1 billion given for FY 2022–2023.
Remember that in November 2022, Airtel Africa distributed an interim dividend of 2.18 US cents per share, calculated at an exchange rate of N446.1/$. The organization then distributed a final dividend in May 2023 at a rate of N680.2/$, or 3.27 US cents per share.
Airtel is paying dividends even though the company lost $89 million in net revenue during the fiscal year.
Even the group is presently undertaking a $100 million share repurchase program, which is scheduled to conclude in August 2024, in its first phase.
The group has repurchased shares of about 17,086,055 million shares, or £17.83 million. As the agent, Citigroup Global Markets is presently conducting the buyback’s initial phase on the London Stock Exchange.
Whether the group will proceed with the second phase of the NGX buyback is still up in the air.
For Airtel Africa, the operational margins for the fiscal year that ended on March 31, 2024, were outstanding. The group’s operating margin was maintained at 32.9%, a tiny decrease from 33.4% in the prior year, despite a slight 6.7% reduction in operating profit to $1.64 billion from $1.76 billion at the end of the previous fiscal year.
During the fiscal year, the group spent $737 million on capital projects, a 1.4% decrease from $748 million the year before.
The acquisition of spectrum and license renewal costs totaling $152 million were the main drivers of the capital expenditure.
Airtel recently declared that one of its companies has repaid a $550 million bond. In addition to its continuing share repurchase program and $224 million dividend payment, Airtel plans to invest a substantial sum of money during the current fiscal year.
On May 20, 2024, the corporation did, however, emphasize its capital allocation approach in their notification.
“The Group’s effective capital allocation strategy, which has been in place since our IPO, is reflected in the current leverage and capital structure, and it will aim to continue reducing foreign currency debt obligations across its OpCos.”
