By Veronika Gulyas
BUDAPEST--Magyar Telekom Nyrt. (MTELEKOM.BU), Hungary's largest
telecommunications company, won't pay a dividend from its 2014
profit, the company said Tuesday, citing its financial position and
the operating and business environment.
Magyar Telekom said its policy of maintaining a net debt to
capital ratio of between 30% and 40% meant it didn't expect to be
able to pay a dividend.
It would be the second year in a row that the company hasn't
paid a dividend.
Magyar Telekom recently won significant band width at a spectrum
tender for 58.65 billion forints ($241 million), which analysts
said earlier would obstruct any dividend payment plans.
Magyar Telekom said its plan not to pay a dividend is subject to
shareholder approval.
Magyar Telekom shares were down 0.8% at HUF358 Tuesday
morning.
Write to Veronika Gulyas at veronika.gulyas@wsj.com; Twitter:
@VeronikaGulyas1
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