Airtel Africa Defies Downturn: Telecom’s Dividend Payout Stands Out Amid Industry Challenges

Airtel Africa will pay a final dividend of N276 billion for 2023, despite a net loss of $89 million (N133 billion) for the financial year ending March 31, 2024. This is stated in corporate consulting with the Nigerian Exchange Corporation (NGX). With the group announcing a return of 3.57 US cents per share for the 2023/2024 financial year.
The Group also set the final dividend exchange rate at 1,485.99/$ for 2023.
The Group, one of Africa’s leading mobile money and telecommunications services providers, present in 14 countries across Africa, previously paid an interim dividend of 2.38 US cents per share at an exchange rate of N858.24/$ in December 2023. Amount interim dividend payment amounting to 76.8 billion naira Reports have that Airtel Africa’s dividend payment has received applause from shareholders, at a time when most companies in telecommunications, food and beverages, and other sectors otherwise, do not pay dividends.

Although MTN Group, the parent company of MTN Nigeria Communications PLC, has paid dividends to shareholders, the Nigerian subsidiary has not declared any dividends at its Annual General Meeting (AGM) held recently. Other food and beverage companies also did not pay dividends amid shareholder complaints. But Airtel Africa chose to take a different route by declaring a dividend of 3.57 US cents per share for the 2023/2024 financial year.
At this exchange rate, Airtel’s final dividend in Naira is approximately 53.05 Naira per share, which represents a dividend yield of 2%. The company’s filings also indicate that the final dividend was paid on July 26, 2024, to shareholders on the register at the close of trading on June 21, 2024.
According to the company, shareholders holding their shares on the London Stock Exchange can choose to receive dividend payments in British Pounds or US Dollars. The statement added: “The closing date for the selection of dividend currency with the Limited Coroner Registrar in Nigeria is 8 July 2024. “Shareholders hold their shares on NSE does not indicate which currency of their choice before July 8, 2024, will receive dividends in Nigerian naira.

According to former Secretary of the Independent Shareholders Association of Nigeria (ISAN), Adeleke Adebayo, said, “The payment of dividends depends on the amount of retained profits. Companies are allowed to pay dividends from retained earnings, i.e. past profits that the company has retained. So if they are confident that the business will do well, they will overcome the current challenges and they have enough retained earnings reserves then you can still pay dividends from retained earnings, This is allowed by law. I think that’s what they paid for.” Speaking further, he said, “I think the main problem that most of these companies are facing has to do with the foreign exchange conversion process, but you also need to know that this is not Airtel Nigeria. This is Airtel Africa, their revenue and everything is not just based on the economy of Nigeria.”