Italy drives growth in Triglav's business, profits reduced by higher losses

Telekoma Slovenije has confirmed to its shareholders a dividend of 4.6 euros per share for the year ending December 31, 2023. This decision was made during the company’s annual general meeting, which took place in Ljubljana on April 5, 2024. The dividend amount represents a slight increase compared to the previous year, reflecting the company's continued profitability despite challenging economic conditions. The announcement came after a comprehensive review of the company’s financial performance, including revenue growth and cost management strategies. According to internal reports shared with shareholders, Telekoma Slovenije recorded a net profit of approximately 42 million euros in 2023, up from 38 million euros in 2022. The improvement was attributed to increased broadband subscriptions and efficient operational adjustments. Shareholders were presented with detailed financial statements showing a stable balance sheet and robust cash reserves, which supported the decision to distribute a portion of the earnings. The meeting was attended by representatives from major shareholder groups, including institutional investors and long-term stakeholders. A representative from the Slovenian Investment Fund stated that the dividend reflects confidence in the company’s strategic direction and its ability to navigate market volatility. Meanwhile, a spokesperson for the European Union’s competition authority noted that the decision aligns with broader trends in the telecommunications sector, where companies are increasingly focusing on reinvestment rather than excessive payouts. In contrast, some smaller investors expressed concerns about the relatively modest dividend yield, arguing that the stock price has remained stagnant over the past two years. One investor, who requested anonymity, pointed out that while the dividend is stable, the overall return on investment has been limited due to inflation and rising interest rates. Despite these concerns, the majority of attendees voted in favor of the proposed dividend distribution, citing the importance of rewarding long-term commitment to the company. The company’s board of directors emphasized that the decision was based on careful analysis of both internal and external factors. They highlighted the impact of regulatory changes in the digital communications sector, which have required additional investments in infrastructure and cybersecurity. These expenses, combined with a more competitive market environment, contributed to a cautious approach toward dividends. However, the board maintained that the current payout level provides value to shareholders while ensuring sufficient capital for future growth initiatives. Looking ahead, Telekoma Slovenije plans to focus on expanding its 5G network coverage and enhancing customer service through digital transformation projects. The company has allocated funds for research and development, particularly in emerging technologies such as AI-driven analytics and smart home solutions. Investors are being encouraged to monitor upcoming quarterly reports, which will provide further insight into the company’s financial trajectory and strategic priorities.