Belgacom unlikely to continue high dividend pay-outs, says CEO

Belgacom unlikely to continue high dividend pay-outs, says CEO

Belgacom’s newly appointed CEO, Dominique Leroy, told a Belgian radio station today that the state-controlled company will not pay exceptionally high dividends in the future, Reuters reports.

Leroy was officially appointed CEO at the company yesterday, and she said that it is looking to balance its shareholder payouts with investments needed in its networks.

Belgacom’s existing dividend scheme saw the company pay €2.49 per share in 2012, up from €2.18 in the previous year.

“In the past two years we have had an exceptional dividend,” Leroy said.

“I think that will be difficult to maintain in the future. In any case, it will have to be part of the discussions with the government and the board.”

Leroy had not dismissed the notion of paying some kind of dividend and told reporters that Belgacom was still at a profitability level whereby it could continue to invest and remunerate its shareholders.

The Belgian government holds a 53.5% stake in Belgacom, although in August last year the government was looking into reducing its stake to 50%.

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