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Telecom Dividend Payout Ratio
Telecom Dividend Payout Ratio
There has been some
confusion in early media reports of Telecom’s
dividend
payout ratio for the coming year.
On a like for like basis, the target payout ratio is unchanged.
The
write-down of Australian operations recognised at 30 June
2006 will
have the flow-on effect of reducing next
year’s depreciation charge.
If we had not adjusted the
target ratio to 75% of net earnings to reflect
this, we
would actually be increasing our distributions potentially
to the
detriment of our target credit ratios.
Adjusting
for the depreciation impact of the write-down, Telecom’s
target
payout ratio for the 2007 financial year remains
constant at 85% of net
earnings, the same as for
2006.
ENDS
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