At the current share price, the dividend yield is 7.3%.

After the meeting of the Supervisory Board held on the 28 of March 2018 Triglav released a statement in which they propose a DPS of EUR 2.5. This amounts to a total dividend payment of EUR 56.8m which represents a 70.3% payout ratio. The proposed payment gives a dividend yield of 7.3% in relation to the closing price of EUR 34.1 per share a day prior the announcement of the proposal.

Looking at the 2014-2019 period, Triglav was paying out a steady dividend of EUR 2.5 per share according to their dividend policy. The minimum dividend payout set by Triglav’s dividend policy is 50% of the consolidated net profit for the previous year. However, Triglav has been surpassing the minimum payout ratio every year since 2013 as it aims not to reduce its dividend payment below the level of the previous year.

Since Triglav raised its DPS to 2.5 in 2015 dividend yields have been steady at 9%-10% before decreasing to 7.9% in 2018 and amounting to 7.3% in 2019. This can be attributed to the company’s share price which went over the EUR 30 per share since the beginning of 2018 and its average price since then until today amounts to EUR 31.2 per share. The price has peaked at the beginning of March this year at level of EUR 35.4 per share and currently stands close to its highest level.

In 2018 Triglav’s GWP went up 7% (from EUR 999.9m to EUR 1068.4m) as premiums grew across markets (Slovenia +7.0%, Other markets +8%) and segments (Non-life +8%, Life & Pension +2%, Health +11%). This has resulted in 32% growth of PBT from underwriting. PBT from investments has decreased by 29% caused by continuation of low-yield environment. It was partly offset by EUR 4.3m one-off net profit before tax from non-insurance operations. Net profit growth was also influenced by favourable claims ratio and moderate growth of operating costs (+5.8%). Triglav’s 2018 net profit increased by 16% YoY (from EUR 69.7m to EUR 80.8m). Therefore, Triglav’s net profits has revisited the level of above EUR 80m last time observed in the period from 2014 to 2016. This was period when exceptionally high income from investments was observed and maximum was seen in 2015 when net investment income has reached EUR 176m.

In 2018, Telekom Slovenije recorded flat sales revenues YoY, increase in EBITDA of 10% and net income of EUR 33.3m. The company also proposed EUR 4.5 DPS, translating to a dividend yield of 7%.

As Telekom Slovenije published their 2018 results, we are bringing you some key takes from the report. According to it, Telekom Slovenije recorded sales revenues of EUR 715m, which is flat compared to 2017.

Compared to 2017, the company increased their revenues of fixed and IT services by 8%, while they also increased revenues in the field of energy and insurance and financial services. Total operating revenue amounted to EUR  731.2m, which is an increase of 0.7% compared to 2017 and 3% less than planned.

Operating Revenues (2015 – 2019e) (EUR m)

When observing the company’s EBITDA, it increased by 10% YoY, amounting to EUR 185.5m. Meanwhile, Net income amounted to EUR 33.3m, which is an increase by EUR 24.3m (+269.3%). Increase in both EBITDA and net income could be attributed to a low 2017 base as Telekom Slovenije in 2017 recorded provisions for lawsuits of EUR 25m. Besides that, the regular part of the business did not shine in 2017, which could be seen when observing their 2017 adjusted EBITDA which decreased by 4.4%.

In 2018 Telekom Slovenije has ended its court dispute involving sum of EUR 130m with the competitor T-2 by out-of-court settlement that was finalized in September. The outcome has negatively affected the planned EBITDA and net income.

EBITDA & Net Income (2015 – 2019e) (EUR m)

Investments in 2018 have reached EUR 133.9m. The majority of investments were used for expansion of optical network and further modernization of wireless network in preparation for the 5G.

Note that for 2019, Telekom Slovenije expects to observe operating revenues of EUR 711.9m, EBITDA of 216m and net income of 30.3m. Investments are expected to amount to EUR 211.9m.

Dividend

The supervisory board together with the management board has also proposed a dividend of EUR 4.5 per share. The GSM will take place on 30 August 2019 and the payout ratio amounts to 75%. At the current share price, dividend yield amounts to 7%.