CFM pays 4cents dividend in strong earnings

November 12, 2009 07:33:10 PM

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Radio conglomerate Communications Fiji Ltd today announced a first interim dividend payment of four cents per share for its 2009 financial year. 

This comes on the back of expected buoyant earnings at the end of the third quarter, driven by strong performance in the Fiji and Papua New Guinea markets in which the group operates. 

“As promised previously, the Board made this decision following a review of the third quarter performance. Our Fiji operations continue to deliver strong results and we are delighted at the way PNG FM has grown in the second half of the year,” said CFM managing director William Parkinson.

The company had forecasted an end of the year Group profit of $960,000 after tax, which Parkinson said was still achievable.

“We are still on track to deliver but of course the final quarter is critical, however, so far so good,” he said.

In a recent meeting with brokers, Parkinson said the company was expecting its Fiji operations to deliver $650,000 of total after tax earnings while the PNG business would deliver around $300,000. The Waimanu Road property was expected to contribute $100,000 while ISP business Unwired Fiji would post a loss of around $90,000. 

“All that adds up to an after tax net profit of just under the million dollar mark.  Last year was $864,000, so I think that’s about a 10 percent or 11 percent growth on last year,” Parkinson had told brokers.

CFM’s dividend payment of four cents per share sees it closing its dividend gap again after a sluggish financial performance over the past three years.

CFM listed on SPSE in 2002 and last traded at $1.70 per share.