TeleMasters gives stellar performance
TeleMasters, which listed in March last year, has declared a dividend of 3c for this quarter. So far this year it has paid 9c a share in dividends.
The company provides telecoms products and services such as least-cost routing, a service that diverts calls to the cheapest network.
Mario Pretorius, the executive chairman of TeleMasters, said: "It has been a good period for the company."
It reported an 8.66 percent increase in earnings per share to R19.75 for the nine months to June.
Profit after tax increased to R8.2 million from R7.56 million for the previous period.
Revenue grew to R128.4 million for the nine months to June from R108.3 million in the previous period, helped mostly by organic growth.
TeleMasters’ total cash at the end of the period amounted to R12.4 million, an improvement from R11.3 million in the same period last year.
Pretorius is confident that the decision to pay quarterly dividends is sustainable.
The company paid 12c a share in dividends last year. It said the subprime crisis had left many investors wary, hence its decision to give more frequent updates to shareholders.
Pretorius said: "Quarterly reporting and quarterly payment of dividends is our way of communicating our performance regularly [to shareholders] … who we believe are keen to receive a 13.3 percent dividend yield quarterly."
He added: "We hope the payment of quarterly dividends will be well received in the market and it will make TeleMasters attractive to investors." He said prospects for further growth were good.
The shares fell 1.48 percent to close at R1.33.
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