KeyTech Reduces Dividend From $0.12 To $0.09
The KeyTech Group of Companies announced a cash dividend of 9 cents a share payable on April 15, 2014, to shareholders of record as of April 3, 2014.
The currently declared dividend rate of 9 cents per share is supported by the earnings of KeyTech’s core businesses, the Company said.
The dividend is reduced from a recent quarterly rate of 12 cents a share, and KeyTech said this action has been taken by the directors of KeyTech in response to “increased investment in its subsidiaries over the past year.”
KeyTech CEO Lloyd Fray says: “Although we achieved synergies during the year, the North Rock amalgamation and TeleCayman acquisition resulted in one-time costs associated with these business changes.
“In addition, we have invested in Logic TV, which launched in January with high start-up costs; BTC’s infrastructure in order to increase access speeds and develop a wholesale product in order to comply with regulatory requirements; aerial fibre deployment to support Logic TV and triple play services in Cayman as well as corporate market growth and the increased ICOL fees and the cost of dealing with regulation in general.
“Historically we have had a high dividend rate, however, the directors felt it was prudent to use the company’s funds to strengthen our position in the marketplace and reduce the dividend.”
