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?
Hi My Sweet Retirement
I just happen to write about Neratel too.
I think the dividends you wrote there might be incorrect.
For FY 2015, interim dividends are at 2.5 cents while final dividends are at 1 cents, so total is 3.5 cents. You shouldn’t add the previous dividends paid in May 2015 because that belongs to the final dividends for FY14.
Hi B,
Thanks for pointing that out!
I have correct the dividends table after checking SGX website and the annual reports.
Looking forward to your analysis on NeraTel.