Telekom Austria Cuts Dividend by Half, Confirms Forecast
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Telekom Austria AG cut the minimum dividend it will pay for this year and 2012 by half to 38 euro cents ($0.50) a share, citing an adverse economic environment and investments that will weigh on cash flow and increase debt.
Austria’s former telephone monopoly, which had previously planned to pay at least 76 cents a share, will pay a dividend of about 55 percent of free cash flow from 2013 as long as this doesn’t lead to a “deterioration of group equity,” Vienna-based Telekom Austria said in a statement today. The company reiterated its guidance for 2011.