(Alliance News) - Ryanair Holdings PLC on Monday reported a half-year profit rise and outlined ordinary dividend policy plans, which will kick off with a maiden EUR400 million payout.
The dividend outlook came in its first-half results, which showed revenue jumped 30% on-year in the six months to September 30 to EUR8.58 billion from EUR6.62 billion. Profit after tax, before one-offs, surged 59% to EUR2.18 billion from EUR1.37 billion. Pretax profit rose at the same pace to EUR2.46 billion from EUR1.42 billion.
"Ryanair Holdings reported a strong half-year profit... thanks to a strong Easter in the first quarter, record summer traffic and higher fares which offset significantly higher fuel costs," the company statement said Monday.
Traffic grew 11% to 105 million passengers, while average fares jumped by almost one quarter.
Ryanair still targets full-year traffic of 183.5 million passengers. It expects profit after tax of EUR1.85 billion to EUR2.05 billion.
Ryanair declared a maiden ordinary dividend of EUR400 million, some EUR0.35 per share, though an interim and final dividend of EUR200 million each. These will payable in February and September of next year.
"Ryanair's shareholders invested EUR400 million in a share placing during the peak of the Covid crisis in September 2020, which was key to Ryanair subsequently issuing a timely, low cost, EUR850 million bond, which helped the group emerge from the Covid pandemic in a position of unrivalled strategic and financial strength," the firm said.
For subsequent financial years, Ryanair will return about 25% of profit after tax, adjusted for non-recurring gains or losses, through ordinary dividends.
In addition, Ryanair said it will "will retain the flexibility to consider, when or if appropriate, the return of surplus cash to shareholders through special dividends and/or share buybacks".
By Eric Cunha, Alliance News news editor
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