Ljubljana, 17 April (STA) - The management of the telecoms incumbent Telekom Slovenije has proposed that the 2023 net profit be allocated for reserves instead of being paid out to the shareholders as dividends, as the company would otherwise have to return EUR 3.57 million in state aid used to mitigate the effect of high electricity prices.
For the same reason, Telekom Slovenije did not share the 2022 net profit among its shareholders last year, deciding that it will be paid out this year.
The company's distributable profit as at 31 December 2023 amounted to EUR 66.5 million.
Regarding distributable profit for 2022, EUR 40.3 million was allocated for dividends under the shareholders' decision at the AGM in February this year.
The company paid out the first part of the dividend in the amount of EUR 3.10 gross per share on 22 March, and will pay out the second part in the same amount on 23 August.
The shareholders are scheduled to decide on the remaining distributable profit in the amount of EUR 26.2 million at the AGM on 17 June, Telekom Slovenije announced on Wednesday.
The management and supervisory boards have proposed that almost EUR 23.9 million, which is the amount of the net profit posted in 2023, be allocated to other reserves from profit, and the rest remain undistributed.
The company said that the reason for such a proposal is the use of state aid to mitigate the effect of high electricity prices.
Companies are obliged to return this aid if they pay out the net profit for 2023 as dividends. If Telekom Slovenije paid it out, it would have to return EUR 3.57 million in state aid.
The company increased its net profit by 15% last year, while sales revenue was up by 4% to EUR 601.7 million, according to the audited annual report confirmed on Tuesday.
The Telekom Slovenije group, which has subsidiaries in seven countries in Southeast Europe, increased its revenue by 7% to EUR 708.2 million last year.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) was up by 6% to EUR 228.6 million, and net profit by 25% to EUR 47.1 million.
The group plans to increase its revenue to EUR 717.4 million this year, while the net profit is expected to amount to EUR 43.2 million, CEO Boštjan Košak said in the annual report. EUR 235.7 million is planned to be allocated for investments.
Telekom Slovenije is in the majority state ownership, with the state holding a direct 62.54% stake, and the state-owned KAD fund a 5.59% stake and Slovenian Sovereign Holding, the custodian of state assets, a 4.25% stake.
