SEL DIVIDEND DROPS BY 30%

MBABANE – Swazi Empowerment Limited (SEL) received a dividend of E46.7 in 2018, a drop from E66.3 million and a decline of 30 per cent from 2017.

Board of Directors Chairman Cleopas Dlamini reported that the decline in dividend was due to the fact that dividends declared and paid by Swazi MTN Limited in the 2017/2018 financial year were 80 per cent of profit after tax as opposed to the 100 per cent of profit after tax declared in the 2016/2017 financial year.

He explained to shareholders during the Annual General Meeting (AGM) convened at the Swaziland Water Services Corporation (SWSC) on Friday that the declaration was in line with Swazi MTN Limited dividend policy which pays dividends at a minimum of 80 per cent of profit after tax and a maximum of 100 per cent of profit after tax.

“Interest earned during the year amounted to E9.8 million compared to E10.9 million in 2017,” said Dlamini. 

interest

Dlamini said the current year’s interest income was mainly from investments in government of Eswatini bonds amounting to E25.4 million, Eswatini Development Finance Corporation (FINCORP) bonds amounting to E20 million and Select Limited bonds amounting to E20 million.

The primary investment of SEL is the 19 per cent shareholding in MTN, which is valued at E492 million as at  March 31, 2018.  MTN is the largest mobile telecommunications company in Eswatini with an estimated market share of over 90 per cent.

A second operator (Swazi Mobile) opened for business in July 2017, in an attempt to capture market share, the operator offered substantially lower prices forcing price competition in the market.

Dlamini said a positive spin-off of this development was increased service utilisation by consumers which stabilised turnover for MTN.
Dlamini disclosed that a dividend of E 23.9 million was received in January 2018 and paid out to shareholders in March 2018.

decreased

“A dividend of E22.8 million was received in July 2018 and paid out to shareholders in August 2018. Profit after tax decreased by 28 per cent to E 52.8 million from E 73.1 million in 2017. This decrease was mainly due to the 30 per cent decrease in dividends received,” said Dlamini. 

The chairman said SEL’s investment in Swazi MTN Ltd was revalued in accordance with International Financial Reporting Standards from E449 524 496 in 2017 to E491 661 148 in 2018.

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