Emtel, a Mauritian telecommunications operator, has announced the introduction of a Scrip Dividend Scheme, allowing shareholders to choose between receiving their dividend in cash or in the form of new shares. The scheme was approved by the company's board on November 5. This move enables shareholders to opt for a dividend payout in either cash or new shares, providing them with greater flexibility. The scheme applies to the final dividend of Rs 0.77 per share, scheduled for payment in December.
Under the Scrip Dividend Scheme, new shares will be issued at a price 3% lower than the average market price, with no brokerage fees. Shareholders who do not communicate their preference will receive their dividend in cash. This scheme allows Emtel to retain some of the liquidity that would have been used for dividend payments. For shareholders, it offers an opportunity to increase their stake in the company. The new shares will also be entitled to future dividends.
Emtel's financial performance has been positive, with an 8.8% increase in revenue to Rs 3.23 billion for the first nine months of 2026, compared to the same period in 2025. The company's profit after tax from continuing operations rose 29.9% to Rs 488 million. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) increased 10.2% to Rs 1.63 billion, with a corresponding margin of 50.5%. Recurring service revenues, including mobile, home internet, and enterprise solutions, accounted for Rs 2.98 billion.
The company's non-service revenues stood at Rs 253 million. Emtel's financial results reflect a positive trend, with significant growth in revenue and profitability. The introduction of the Scrip Dividend Scheme provides shareholders with an additional benefit, allowing them to choose between cash or new shares.
The Scrip Dividend Scheme is a common practice among companies, allowing them to conserve cash while providing shareholders with an alternative option. Emtel's decision to introduce this scheme demonstrates its commitment to enhancing shareholder value. The company's financial performance and growth prospects make it an attractive investment opportunity.
Emtel's management has expressed confidence in the company's growth prospects, citing a strong performance in the first nine months of 2026. The introduction of the Scrip Dividend Scheme is expected to benefit both the company and its shareholders. The scheme provides shareholders with greater flexibility and an opportunity to increase their stake in the company.
The telecommunications sector in Mauritius is highly competitive, with Emtel being a major player. The company's financial performance and strategic initiatives, such as the Scrip Dividend Scheme, position it well for future growth. Shareholders will have the opportunity to benefit from the company's growth prospects and dividend payments.
Key points
- Emtel's Scrip Dividend Scheme allows shareholders to choose between cash or new shares for dividend payments.
