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Vodafone Hands Over $33m To FNPF, ATH As Dividends

Vodafone Fiji has handed over yet another record dividend cheque of $33 million to its two major shareholders; the Fiji National Provident Fund and Amalgamated Telecom Holdings (ATH). ATH, 51
17 Jun 2016 10:54
Vodafone Hands Over $33m To FNPF, ATH As Dividends
Vodafone declared a dividend payout of $33 million to its shareholders yesterday. From Left: General Manager ATH-Ivan Hong, Chairman FNPF-Mr. Ajith Kodagoda, Vodafone Fiji CEO Pradeep Lal, Chief Operating Officer FNPF- Mr. Jaoji Koroi Photo:Roneel Karthik

Vodafone Fiji has handed over yet another record dividend cheque of $33 million to its two major shareholders; the Fiji National Provident Fund and Amalgamated Telecom Holdings (ATH).

ATH, 51 per cent shareholders, received $16,830,000 while FNPF, 49 per cent shareholders, received $16,170,000.

Vodafone Fiji chief executive officer, Pradeep Lal, said their business has grown significantly and they had an 18 per cent growth in terms of the turnover of the company compared to the previous financial year.

Mr Lal said they have added over $120 million in shareholders’ value for both the shareholders.

“So what this means is FNPF, directly and indirectly, owns 86 per cent of Vodafone Fiji Limited,” he said.

“FNPF has over 400,000 members who contribute to FNPF. This company is locally owned and whatever dividend is paid, it goes back to the members.

“This also takes after we became a local company. In the two years, we have paid $66 million in dividends so that’s quite significant.”

Mr Lal said this has been possible because Vodafone Fiji continues to grow and invest into infrastructure.

“Over the past few years, we have invested over $100 million in infrastructure taking the 4G coverage to 60 per cent of the population,” he said.

“This financial year, we will be putting another $35 million to take our 4G coverage from around 65 per cent to 80 per cent.”

 

The right decision

FNPF chairman, Ajith Kodagoda, said the fund took a relatively big risk two years ago when it bought out Vodafone’s entire 49 per cent stake in Vodafone Fiji Limited.

“Obviously, the results have proven that our decision was right. I think it is important to emphasise all this money is now going to remain in the country,” he said.

“It is important the dividend we get from Vodafone ultimately will end up in the pockets of every Fijian on the street.

 

Competition heating up

ATH general manager, Ivan Fong, said the dividend payout was good showing good results and obviouslt has been sustained.

“It is on the back of improvements at Vodafone Fiji Limited and we look forward to the new services that are coming,” he said.

Mr Fong said the state of competition in Fiji is heating up for ATH.

“It is one of the reasons we are looking at a regional place looking now since we started last year with Kiribati,” he said.

“So, more than being a shareholder of Vodafone, we are also working in partnership as active shareholders looking at some of these markets and developing and growing those markets as well.

“So we look forward to working in partnership in other projects that we are doing in the Pacific and hope for sustain success for future.”

 

Expansions

Together with this, Mr Lal said they have also been supporting ATH as its shareholder.

“Last year we helped them in the acquisition of ATH Kiribati,” he said.

“We are happy to briefly say that ATH Kiribati is also meeting our expectations and the results are looking very promising.

Vodafone Fiji has also acquired, DATEC, the largest IT company in the country.

Mr Lal said they were pleased to report DATEC is doing exceptionally well and also becoming a major regional player.

 

Edited by: Rachna lal

Feedback:  christine.nikola@fijisun.com.fj

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