Zavod VZMD proposed a dividend payment of EUR 4 per share, compared to initially no dividend payment proposed by the Management Board. Dividend yield is 9.1%.

Telekom Slovenije received a counterproposal by the shareholder Zavod VZMD (Pan-Slovenian Shareholders’ Association) regarding the dividend payment in 2020. Zavod VZMD proposed a dividend payment of EUR 26.02m which translates into a dividend of EUR 4 per share. As a reminder, the Management Board initially proposed no dividend payment (EUR 30.16m to remain undistributed).

The newly proposed dividend translates into a yield of 9.1%, while the proposed ex-date is 17 June 2020.

Both proposals are subject to approval at the GSM which will be held on 5 June 2020. Given the current situation regarding the Covid-19 pandemic and the implications and uncertainties which come with the situation, it is highly unlikely that the counterproposal ends up being approved on the GSM.

In the graph below, we are bringing you historical overview of the company’s dividends.

Telekom Slovenije Dividend per Share (EUR) & Dividend Yield (%) (2010 – 2019)

Trading statistics for April show an average daily turnover of EUR 1.75m (+44% YoY). Meanwhile, the major index CROBEX ended April with an increase of 4.3% ending at 1,544.30 points.

After witnessing a selloff in March, which resulted in a very high total equity turnover on the Zagreb Stock Exchange (ZSE) of EUR 86.3m (HRK 651.2m), the ZSE observed a somewhat of a stabilization in April. The total equity turnover in April amounted to EUR 35.1m, which translates to an average daily turnover of EUR 1.75m (+44%).

Of the total value traded in the period in April (excluding block transactions), Valamar Riviera generated 17%. HT comes second, accounting for 14%. Next come Adris preferred and Optima Telekom with 10% and 7.3%, respectively. AD Plastik follows with 7.1%. These five shares generated more than half of the turnover recorded by the entire (equity) market, excluding block transactions.

Share Price Performance of Croatian Blue Chips in April (%)

When observing the total equity market capitalization, it observed an increase of of 3.2% MoM, amounting to HRK 130.21bn (EUR 17.1bn). Ina’s share is the biggest constituent of the total exchange’s equity market capitalization, accounting for about 23.6% of the total value. Next, come two Croatian banks – PBZ and ZABA with 12.7% and 12.5%, respectively. Further, HT holds 10.5%.

In April, the main index of ZSE, recorded a slight recovery of +4.31%, ending the month at 1544.30 points. It is worth noting that all sector indices ended the month in green as well, with CROBEXkonstrukt recording the highest monthly increase of 23%. As a reminder, in March CROBEX recorded a sharp decrease of 20.55%. Such a high monthly decrease of the index was last time recorded in November of 2008 when CROBEX dropped by 26.7%.

Daily Changes of CROBEX (March & April 2020) (%)