Special divvy would have been faster - but they are achieving the same thing in a way that ensures nobody pays any tax. They are returning over $80M in total which is a lot higher than many expected.
Bit of a process to get the capital distribution signed off by the courts etc, which is why I thought they might just go special dividend in the end.
But it is a big distribution so I think we should be pleased with that. And guidance for next year looks pretty solid despite increase in content costs hitting.
Have to say, in terms of running the operations of Sky TV - Sophie and the team are doing a very good job.
Very strong result. Prudent choice for the capital distribution. And, excellent guidance for the following year. Market will probably hate it though lol
Not that generous with their hand outs are they ..... suppose beggars got to take whats offered
How do you mean?
They are distributing $82M between the capital return and the dividend? That's at the higher end of the ranges we have all been predicting this last month?
They are distributing $82M between the capital return and the dividend? That's at the higher end of the ranges we have all been predicting this last month?
I'd decided I'd be delighted with 50c, which is about what we are getting once you add some imputation credits onto the dividend. Pretty pleased. A special dividend would have suited me better, but the capital distribution although slower, makes more sense for most I would have thought.
They are distributing $82M between the capital return and the dividend? That's at the higher end of the ranges we have all been predicting this last month?
Couldn’t agree more, guess some people are looking for instant returns. What they’ve done is probably the best outcome for long term holders. Less share on issue is better from earnings and dividend point of view going forward. Very pleased they listened to shareholders.
Chris Keall likes it. Tom Pullar-Strecker likes it. I guess that means some folk who like dividend paying stock will be on the phones today saying Buy! My guess it will be an UP day.
Couldn’t agree more, guess some people are looking for instant returns. What they’ve done is probably the best outcome for long term holders. Less share on issue is better from earnings and dividend point of view going forward. Very pleased they listened to shareholders.
Yeah the only downside is that you have to wait longer, but the upside is zero tax if you aren't set up as a company.
Your comments around earnings and dividends is inaccurate though.
As the shares are cancelled on a pro-rata basis the dividend you receive next year will be exactly the same as it would have been if they just did a special dividend this year (and didn't cancel shares). The dividend per share might appear higher...but you will own less shares, so the total you receiv will be unchanged.
You would only get higher dividends if they were returning capital by an on market buyback, whereby your % ownership of Sky would increase as they purchased shares and you did not sell.
Same thing goes for any 'increase' in earnings per share. It is smoke and mirrors.
They are distributing $82M between the capital return and the dividend? That's at the higher end of the ranges we have all been predicting this last month?
Yeah....ive been scratching my head and trying to figure out what Winner meant......happy as here.
What will be interesting will be where the SP settles today.
People with more powerful calculators than mine will be trying to figure that out.
Mr T...thought they would go the Capital Return way....few more months is not really material in the bigger scheme of things.
Originally Posted by winner69
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