Dhiraagu reports decrease in revenue, prices interim dividends at MVR 2.07 per share

Following a decrease in the revenue in comparison to the previous quarter, Dhiraagu has priced their interim dividends at MVR 2.07 per ordinary share.

In a press release to declare interim dividends for the financial year 2020 on Friday, the telecommunications provider revealed that the Covid-19 virus, a globally-declared pandemic by the World Health Organization (WHO) during March 2020, has had a “significant” impact on Dhiraagu’s results during the second quarter of 2020.

As such, a 25 percent decrease in revenue was reported in comparison to the previous quarter, primarily due to the pandemic’s impacts on the country’s economic growth.

Last year’s interim dividend was priced at MVR 4.14 per share, revealed Dhiraagu.

The reduction in revenue came from all key areas of the business, the most significant impact however, was felt due to the closure of borders and the tourism industry coming to a complete standstill throughout the second quarter for the year, said Dhiraagu.

Further, the company’s net profits decreased by 49 percent and earnings per share decreased by 50 percent in comparison to the previous quarter due to the revenue impact from the current heath emergency.

In this regard, Dhiraagu revealed that the company’s Board of Directors remains committed to create the right balance between strategic long-term investments and a strong financial position to steer the telecom provider through these challenging market conditions whilst attempting to maintain sustainable value for shareholders.

The Board of Directors approved MVR 2.07 per ordinary share amounting to a total dividend of 157,320,000 after taking these factors into consideration. These will be declared and paid out as interim dividend for the financial year 2020.

The interim dividend will be payable to all shareholders listed in the Company’s register as at 4pm on August 11, said Dhiraagu.