The Portugal Telecom’s Group General Shareholders meeting took place on the 29th of April in which the consolidated and individual accounts related to 2004 were approved.
The meeting began with the intervention of the Chairman of the Board, Ernâni Rodrigues Lopes who underlined the fact that, throughout the last two years, PT has “successfully faced the main challenges which were presented to the Group”, while highlighting “the excellent work, merit and high quality of all of the members of the Executive Commission”. According to the Chairman of the Board “the Group is in the position to successfully respond to threats and opportunities which may appear on the horizon”.
This was followed by an intervention by the Executive Commission Chairman who presented in detail, the results related to 2004. According to Miguel Horta e Costa “2004 was marked by a strong operational and financial performance, with the investment within the domestic market and in Brazil, with the cost rationalizing programmes and with the continuation of the attractive shareholder payments”.
In his presentation, Miguel Horta e Costa also highlighted the integration strategy of different platforms as a way of meeting client needs, and the emphasis on broadband. The Executive Chairman also highlighted along these lines, the success of the PT Schools project as a way of fighting IT illiteracy and recalled the objective of reaching one million broadband clients by the end of 2005. The solid financial situation which allowed the Group to invest in its growth and shareholder payout was also highlighted, “which is, one of the most attractive within this sector”.
AG approved the share buyback programme and dividends of 35 cents per share.
The share buyback program of up to 10% of capital was approved in the General Meeting. The possibility of reducing social capital to the same value was also approved.
A dividend of 35 cents per share was also approved and will be paid out to clients on the 27th of May.
It is also important to mention the approval of the vote of honour for the management of the Portugal Telecom for the way in which they led the company throughout the year.
Portugal Telecom distributed 40 shares per employee.
Following the policy initiated in 2003, the distribution of a new lot of shares among their employees was approved in the Shareholders General Meeting.
With this, each employee should receive a new lot of 40 shares, and an extra 5 shares will be given out to those who have kept their lot from 2005 and another 5 for those who have kept their lot from 2003.
Almost all employees will receive these shares in which an investment of more than 6 million euros is estimated. A lot of 50 shares had already been given out in 2003, an initiative which involved a total investment of about 4,8 million euros.
Bearing in mind the value per share at the time of carrying out this operation (6,20 euros) the accumulated value today would be superior to 40%.
A new lot of 45 shares were attributed in 2004, with an additional attribution of another 5 shares as a loyalty bonus, to employees who had held onto the shares given to them in 2003.
In relation to the distributed dividends, in the case of the shares given out in 2003, the dividend per shared paid in the previous year rose to 22 cents. Now, Portugal Telecom proposes the payment of a dividend of 35 cents per share which includes the lots distributed among employees in 2003 and 2004.
Those who have kept their shares have today a lot of 100 Portugal Telecom shares, which has a value of 85 euros which has then a 46 euro dividends added, considering the value of the distribution that will be made in the following month of May.