Hrvatski Telekom shareholders saw a financial gain within only two days of the company launching its share buyback.
According to Poslovni, they increased the value of their assets through the purchase of shares rather than dividends.
Following last Wednesday’s announcement of the HRK500 million (€67.4 million) buyback, due to be completed by April 20, 2021, the share price rose to HRK183.70 the next day, or 4.19% more than on Tuesday.
This compared to the HRK6 dividend that shareholders received this year, representing a dividend yield of 3.3%, or the lowest in five years.
The market is understood to have reacted positively to the buyback because Hrvatski Telekom plans to cancel the redeemed shares.
This will reduce the total number of shares in circulation and should increase the earnings per share in the future.
