“MegaFon” will pay for 2016 32,25 RUB per share

Moscow. June 30. INTERFAX.RU – MegaFon’s Stockholders at the annual meeting on Friday approved the payment of dividends for the year 2016 in the amount of 20 billion rubles, or 32.25 RUR for an ordinary share (or GDR), said in a statement. Thus, the amount of dividend including interim for the year 2016 will amount to 40 billion roubles, which corresponds to 64.5 ruble per ordinary share (or GDR).

The list of shareholders entitled to receive dividends will be compiled according to the register on July 11. During 2016, “the Megaphone” has twice paid interim dividends for the first quarter and 9 months of 2016. In sum – 20 billion rubles.

The current dividend policy of “Megaphone” assumes the payment in the amount of 70% of free cash flow or 50% of net profit for the year on the condition that debt at the level of 1.2-1.5 to OIBDA. By the end of 2016, the free cash flow of MegaFon grew by 12.8%, to 47 billion rubles. Net profit last year amounted to 25.5 billion rubles, which is 34.7% lower than in 2015. The ratio of net debt to OIBDA amounted to 1.6.

At the end of may “the Megaphone” announced update dividend policy, which specifies the minimum amount of dividends at 70% of free cash flow to shareholders without the inclusion of the results of Mail.ru. The net debt / OIBDA ratio should not exceed a value of 2 excluding the financial results Mail.ru. At the end of the first quarter of 2017, the net debt / OIBDA ratio amounted to 1.91.