Menu

Dividends

06/24/2016 - 09:45 PM

- + Text size
Print

The dividend is the portion of the profit paid by the company to its shareholders. Payment of annual dividends is subject to approval by the holders of Ordinary Shares at the annual general shareholders’ meeting, which must be held within 180 days after the end of the financial year to which it relates (pursuant to article 18, second paragraph, of the Company’s Bylaws).

Dividend Policy for 2016 (on the basis of FY 2015 Results)

The determination of our future dividend policy, and the amounts thereof, will depend upon a number of factors, including but not limited to our earnings, financial condition and cash requirements, prospects and such other factors as may be deemed relevant at the time.

 

The Board of Directors held on March 17, 2016 proposed the distribution of only the privileged dividend to savings shares, in the amount of 2.75 euro cents per share.

This proposal is consistent with the strategic priority of directing available resources to increasing the pace of making innovative investments, one of the pillars of the 2016-2018 Plan presented to the Financial Community on February 16, 2016.

On May 16, Telecom Italia presented the First Quarter 2016 Results. In that occasion, the CEO Flavio Cattaneo, appointed on March 30, discussed an update to the 2016-2018 Plan, centered around the better allocation of investments and the more effective recovery of efficiencies.

 

Telecom Italia Annual General Meeting held on May 25, 2016 approved the distribution of the only privileged dividend to savings shares.


The amounts for dividends has been paid in favour of entitled parties, on the basis of the evidence of the share deposit accounts at the end of the record date of 21 June 2016, starting from 22 June 2016, while the coupon date was 20 June 2016.

Dividends per Ordinary Shares and per Savings Shares

The following table sets forth the dividends per Ordinary Share and per Savings Share declared by Telecom Italia with respect to each of the last five fiscal years (dividend history is available above, on the right) and the aggregate dividends paid in such years. Actual dividends paid are rounded to the nearest whole cent. No ordinary share dividend is being paid for the year ended December 31, 2015.

  Dividends on Ordinary Shares Dividends on Savings Shares
Dec 31,
2011
2012
2013
2014
2015
€ per share
U.S. $ per share* (millions of euros)
0.0430 0.0563 575.30
0.0200 0.0260 267.59
-
- -
- - -
- - -
€ per share
U.S. $ per share* (millions of euros)
0.0540 0.0707 325.41
0.0310 0.0403 186.81
0.0275 0.0377 165.72
0.0275 0.0299 165.72
0.0275 0.0314 165.76

* Euro amounts have been translated into U.S. dollars using the Noon Buying Rate in effect on the respective payment dates. For the year ended December 31, 2015, Euro amounts have been translated into U.S. dollars using the Noon Buying Rate in effect on April 8, 2016.

 

(Table Source: Telecom Italia Form 20F)

 

About Telecom Italia type of shares...

The amount and conditions for the payment of the dividend are proposed by the Board of Directors to the General Meeting, which is usually convened within 120 days from the end of the Financial Year (December 31).

The share capital (*) of Telecom Italia is divided into two different types of shares:

  • ordinary shares, the holders of which have the right to attend, intervene and vote during ordinary and extraordinary Shareholders’ Meetings. They also have the right to obtain a part of the net income allocated by the company, subsequent to its distribution to savings shareholders.
  • savings shares, the holders of which do not have the right to vote neither in ordinary nor in extraordinary Shareholders’ Meetings but benefit from the distribution of the net income for the year up to five per cent of 0,55 euros per share and, in any case, a higher dividend by two per cent of 0.55 euros per share.