Med-View Airline To Pay Second Dividend, As It Records 62% Profit Growth
Med-View Airline Plc, the only airline listed on the Nigerian Stock Exchange (NSE), is set to pay shareholders second dividend since becoming quoted on the exchange. This follows the company’s improved performance for the year ended December 31, 2017.
According to the audited results of the company released last week, revenue grew by 41 per cent from N26.039 billion in 2016 to N36.962 billion in 2017. Operating cost rose from N21.895 billion to N30.949 billion, while gross profit stood at N6.012 billion, showing an increase of 45 per cent above N4.144 billion in 2016. Administrative expenses moved up to N4.179 billion, from N3.321 billion, while finance cost was driven by high charges on overdraft to N227 million, from N193 million.
Med-View Airline ended the year with a profit before tax of N1.506 billion, up 79 per cent from N840 million. However, higher tax of N252 million in 2017, which was an increase of 276 per cent compared with N67 million in 2016, made the profit after tax (PAT) to grow slower. Specifically, PAT rose by 62 per cent from N772 million to N1.253 billion in 2017. Based on the performance, the directors have recommended a dividend of three kobo per share.
This is the second dividend the airline would be paying, having paid the first dividend last year. The Managing Director/Chief Executive Officer of Med-View Airline Plc, Alhaji Muneer Bankole had assured the capital market community that unlike other airlines that listed on the exchange and did not pay dividend before they went under, the Med-View would create wealth for shareholders.
According to him, Med-View is a company that has been known for excellent services delivery, stressing that the service excellence would be replicated in the company dealing with investors and other market stakeholders.
He had said that the future of the aviation industry was very bright and Med-View Airline was positioning to be a leader, hence the decision to list on the NSE.
Prospects of recording more earnings and giving higher returns to shareholders brightened last December when Med-View commenced schedule flights to Jeddah .
According to Bankole, Med-View is a designated carrier for the Nigerian government on Jeddah route, noting that this recognition has made the Kingdom of Saudi Arabia to grant schedule flight operations to the airline as approved by General Authority of Civil Aviation (G.A.C.A).
“Jeddah route is highly significant to the corporate and economic standing of Med-View as this is one sector through which the company generates substantial fund particularly during Hajj operations. The flight is schedule to depart Lagos via Kaduna and Kano to Jeddah. The airline is poised to making the operation a memorable and worthwhile experience having mastered flights operation to the route over the years,” Bankole said.