Kazakhtelecom cuts dividend to fund development

Kazakhtelecom cuts dividend to fund development

Kazakhtelecom has cut its shareholders' dividend to fund a $200 million investment in development and new technologies over the next two years.

The company, which is 51% owned by Kazakh welfare fund Samruk-Kazyna, will pay substantially less dividends to shareholders for 2012 compared to 2011.

Stockholders will receive $1.07 a share, down from a respective $8.80 in 2011.

Total dividend payout will fall from $99 million in 2011 to $11.8 million for 2012. However, the company’s chief financial director Arnur Nurkatov renewed optimism by stating the company expects to see profits of $132 million in 2013.

“Our actions will depend on how it all goes. This is a long-term project, so the structure and volume of financing may change,” added Nurkatov.

The Kazakh fixed-line operator had paid a special dividend totalling $1.4 billion in 2012 after selling its 49% share of Kcell to TeliaSonera for $1.519 billion.

Kazakhtelecom launched 4G LTE service in capital Astana and financial centre Almaty in 2012.

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