Finally, MedView makes history in West Africa, declares $5m profit in 2017
Following the declaration of profit in the aviation industry in West Africa by Togolese carrier, Asky Airlines in 2016, another carrier, Medview Airlines has declared a profit of $5 million in the 2017 operational year.
For achieving this feat, Medview made history by becoming the first Nigerian airline to have declared profit in the industry.
According to nairametrics.com, Medview Airline Plc released its audited financial statements for the year ended December 2017. Gross revenue increased from ₦26 billion in 2016 to ₦36 billion in 2017. Profit before tax literally doubled from ₦840 million in 2016 to ₦1.5 billion in 2017. Profit after tax also increased from ₦772 million in 2016 to ₦1.2 billion in 2017. Earnings per share moved from 7.93 kobo in 2016 to 12.86 kobo in 2017.
The company has proposed a 3 kobo dividend for shareholders, indicating a 23.3% payout ratio. The payout ratio is the proportion of a company’s earnings paid as dividends to shareholders.
International Operations provide more revenue
Medview made ₦36.9 billion as revenue in 2017, a 41.9% increase compared to the ₦26 billion it made in the corresponding period of 2016. The company made ₦8.2 billion from Hajj and cargo operations which is a 46% increase from the ₦5.6 billion it made in 2016. ₦14.8 billion was earned from domestic operations, a 27.5% increase from ₦11.6 billion made in 2016. ₦13.8 billion was generated from international/regional operations, a 58.6% increase from the ₦8.7 billion made in the corresponding period of 2016.
International operations comprised 30% of the ₦26 billion in revenue generated in 2016. This increased to 36% of the ₦36.9 billion made in 2017.
Capital raise on the horizon?
In its Annual General Meeting (AGM) notice sent to the Nigerian Stock Exchange (NSE) today, the directors will seek the approval of shareholders to offer 2.2 billion ordinary shares of 50 kobo at a price to be determined by the directors acting in the best interests of the company.
Medview Airline shares closed at ₦2.17 in yesterday’s trading session, unchanged. Year to date, Medview shares are up 9.05%.