Medview to boost shareholders’ earnings via expanded operations
Investors in Medview Airlines’ Plc, the only listed airline company in Nigeria, should expect better returns on their investments, following the company’s strategic business plan of boosting flight operations targeted at enhancing earnings.
The company has announced the commencement dates for new routes in Francophone African countries and Dubai, new flight destinations expected to boost the Medview earnings and close the 2017 financial year on a better earnings’ ratio compared to 2016 results.
The company recently announced that it has commenced flight operations to Francophone countries, West Coast region, with the acquisition of its new B737-800 aircraft.
However, experts say that the new flights to Abidjan, Conakry and Dakar, would enhance the company’s financial fortunes to further better rewards to shareholders in terms of dividend payment.
Also, Mediview Airline, in its plan to lift services and flight operations to wider international destinations, also recently acquired modern Airplane, B77-200ER; and has also scheduled to commence its Dubai operations in December 2017.
Daily Times Nigeria, recalls that the new earning opportunities embedded in the new flight destinations, are addition to the earlier Anglophone countries of Accra, Monrovia and Freetown.
Medview in a statement signed by its Chief Executive officer, Muneer Bankole, said that the new the inaugural flight to the new Francophone countries, which has increased its west coast destinations to six, will take place on 27th October, 2017.
Med-View Airline, on 31 January, 2017, listed by introduction on the official list of the Nigerian Stock Exchange (NSE) 9,750,649,400 ordinary shares at N1.50 per share valued N14, 625,974,100 billion.
Med-View Airline Plc for the earlier in the year of its listing on the NSE paid a dividend of 3 Kobo to shareholders, following approval secured at the AGM held on 17th May 2017.
It will be recalled that Med-view Airline reported a growth of 27 per cent in profit after tax (PAT) to N857 million for the half year ended June 30, 2017, compared to N672 million recorded in the preceding period of 2016.
Its gross revenue for the period, grew to N13.007billion in 2017, from N8.7bn, reflecting 48 per cent growth, while operating cost however rose to N9.982bn,from N7.748bn, which was driven by rise in costs of aviation fuel and lease of aircraft for local operations.
The airline spent N1.257bn on lease of aircraft in H1, compared with nothing in the corresponding period of 2016.
Similarly, N4.506bn was spent on aviation fuel, showing an increase of 60.2 per cent above the N2.811bn recorded in 2016. The amount spent on aviation alone accounted for 45 per cent of the total operating cost in 2017, compared with 37 per cent in 2016.
Med-view Airline ended the H1 with a profit before tax (PBT) of N945 million, from N739m; and a PAT of N857m; as against N672m.
Stories by Bonny Amadi
