Ryanair proposed (01-Jun-2010) to pay a one-off dividend of EUR500 million (EYR0.34 per share) in Oct-2010, subject to shareholder approval at its September AGM. The carrier has previously stated it would end its no-dividend policy in 2013, coinciding with plans to scale back growth (Reuters, 01-Jun-2010). Ryanair has not paid dividends in the past, but has invested more than EUR300 million on share buybacks in the past three years.
Ryanair: "In December 2009 we ended our discussions for a 200 new Boeing aircraft order. Since we don’t anticipate a new deal with Boeing for the foreseeable future, our gross capex will fall substantially over the next three years. We expect to generate up to EUR1 billion in surplus cash by the end of FY13. We now propose to return EUR500 million of this cash in a one off dividend in October 2010 subject to shareholder approval at our September AGM. We also anticipate that there may be a further EUR500m (absent any new aircraft orders or other capex) available for return to shareholders either via share buy backs or another one off dividend by the end of FY13. This EUR500 million dividend if approved in September will bring to EUR846 million the amount of funds returned to shareholders by Ryanair in share buy backs and dividends over the past three years," Company Statement, 01-Jun-2010.
Ryanair: "People often listen to what Ryanair says and say this is just palaver or putting it on. It's probably come a little bit sooner than others would have expected but notwithstanding that, it's here for real now," Michael Cawley, Deputy CEO. Source: Reuters, 01-Jun-2010.