MTDC Announces MVR 20M Dividend Distribution at 60 Laari per Share

Maldives Tourism Development Corporation (MTDC) has announced a dividend of 60 Laari per share from last year's profits. This decision, made at the company’s annual general meeting held at the Manhattan Business Hotel, received overwhelming support with 99 percent of shareholder votes in favor.

The total dividend payout amounts to MVR 20.4 million. This marks the third consecutive year MTDC has issued a 60 Laari dividend per share. Despite this positive move, the company experienced a significant revenue drop last year, falling by USD 6.7 million (MVR 103 million) to USD 7.3 million (MVR 113 million), reflecting a 9 percent decrease from the previous year. The gross profit also saw a notable decline, dropping by 41 percent to USD 1.4 million (MVR 21 million) from USD 2.5 million (MVR 38 million) in 2022.

The revenue decline is primarily attributed to the termination of the sublease for Haa Dhaalu atoll Naagoshi. Additionally, the profit decrease is linked to an increase in deferred tax liabilities. Despite these challenges, MTDC has been able to sustain dividend payments, a testament to its resilient financial management.

The corporation, which began generating profits in 2021 after a long period of losses, relies heavily on leasing agreements for islands designated for tourism. MTDC’s efforts to adjust these agreements have played a key role in its recent financial performance.

As MTDC continues to navigate these financial challenges, its commitment to maintaining shareholder returns underscores its focus on long-term stability and growth in the tourism sector.