Skip to main content

NeraTel Cuts Dividend from Two Cents to One Cent

NeraTel Payment Terminal

NeraTel announces its 4Q2015 results on 24th February 2016. Profit after tax for the full year fell 17.4% from $16.2 million to $13.4 million. A final dividend of one cent was declared as compared to two cents a year ago.

NeraTel business comprises of two main segments. They are Telecommunications and Info-communications.

Telecommunications

Compared to FY 2014, turnover for FY 2015 declined 6.7% ($4.1 million) from $61.9 million to $57.8 million. The decrease was due to lower sales in the Middle East and Africa market.

Info-communications

Network Infrastructure

Compared to FY 2014, turnover for FY2015 declined 4.5% ($3.6 million) YOY from $80.6 million to $77.0 million. The decline in turnover for the quarter and FY2015 mainly resulted from lower sales of network equipment to the Service Provider market sector.

Payment Solutions

Compared to FY 2014, turnover for FY2015 increased 17.2% ($6.8 million) YOY from $39.9 million to $46.7 million as a result of higher contribution from terminal sales and leasing.

Dividends

With the final one cents dividend being declared, this brings the total dividend paid for 2015 to 3.5 cents.

Year 2010 2011 2012 2013 2014 2015
Total dividend (cents)  3  4  4  6  4  3.5
Earnings per share (cents)  3.02  3.73  5.36  6.48  4.48  3.7
Dividend payout ratio (%) 99  107  75 93  89  94.6

Again NeraTel’s dividend payout ratio near to 100%. Is this sustainable?

Subscribe to My Sweet Retirement via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.