Magyar Telekom Jumps Most in 11 Months on Dividend Plan, Profitby
Magyar Telekom eyes 25 forint/share dividend from 2016 profit
Profit more than doubles in fourth quarter, beats estimates
Magyar Telekom Nyrt. rose the most in almost a year as Hungary’s former telephone monopoly plans to boost dividends in 2016 and after earnings beat analysts estimates.
The shares jumped 4.2 percent to 427 forint, the highest since June, as of 1:56 p.m. in Budapest. The company said it plans to pay a dividend of 25 forint per share from this year’s results, up from the proposed 15 forint a share from 2015 profits. The company last paid a dividend in 2013.
"The positive news, although highly expected, was the return to paying dividend, which could translate to a 3.7 percent dividend yield, " Helena Naffa, a Budapest-based analyst at UniCredit SpA, said in an e-mailed note.
Net income was 3.35 billion forint ($11.9 million) in the fourth quarter, exceeding the 2.95 billion forint median estimate of four analysts in a Bloomberg survey.
Magyar Telekom has issued a new management guidance with targets of between 187 billion and 191 billion forint this year in earnings before interest, taxes, depreciation and amortization and between 189 billion and 193 billion forint in 2017. The company has also updated its revenue targets and sees a 10 percent drop in capital expenditures in both this year and the next.