Qantas’ share price up on stock buyback and higher dividend announcement
Investors disregarded the weaker-than-expected results as the airline said it plans to buy back up 79.7 million shares in an off-market tender and announced a higher dividend pay-out.
Australian airline Qantas Airways’ share price rose as much as 4.5% on Thursday after the group proposed an A$400 million share buyback and higher dividend pay-out as it revealed its full-year results.
This is after the group posted a 17% fall in annual net profit, down from A$1.57 billion to A$1.30 billion for the year ended June 30, driven by fuel costs and a weaker Australian dollar. The number was below analysts’ estimates of A$1.36 billion.
Qantas posted a 5% rise in revenue, at A$17.97 billion.
Investors disregarded the weaker-than-expected results as the airline said it plans to buy back up 79.7 million shares in an off-market tender, which is worth almost A$400 million at its most recent share price. It also declared a final dividend of 13 Australian cents per share for the period, up from 10 cents.
The group’s shares rose 4.5% in midday trade but cooled later to close the day’s session 1.38% higher, at A$5.86.
The airline said that it would keep its capacity flat to follow with a lacklustre Australian economy.
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