Sky TV makes $124.5m special dividend to distribute tax credits
Sky Network Television, whose long-standing cornerstone shareholder Todd Communications exited this month, will pay a $124.5 million special dividend to shareholders to share its tax credits with investors.
The Auckland-based company will make a special dividend of 32 cents per share with a record date on December 13 and payment on December 19, it says in a statement. Last year Sky TV paid a special dividend of 25 cents per share.
The payment was being made after the company was left with $44 million in tax credits, having settled its tax bill of $16 million yesterday, spokeswoman Kirsty Way told BusinessDesk.
The shares were unchanged at $5.07 yesterday and have slipped 4.3% this year. The stock is rated an average "hold" based on 10 analyst recommendations compiled by Reuters with a median target price of $5.30.
Sky TV made a profit of $123.7 million, or 31.78 cents per share, in the 12 months ended June 30 and paid a dividend of 22 cents in the 2012 financial year.
As at June 30, the company had cash and equivalents of $27.9 million.