MTDC Announces 60 Laari Per Share Dividend From Last Year’s Profits

Maldives Tourism Development Corporation (MTDC) has resolved to distribute a dividend of 60 Laari per share from last year’s profits. 

This decision was confirmed with 99 per cent of shareholder votes at MTDC’s annual general meeting, which took place last night at the Manhattan Business Hotel.

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A total of MVR 20.4 million will be allocated to shareholders at the rate of 60 Laari per share. This is consistent with the dividend amount distributed in the past two years.

Despite the dividend announcement, MTDC has reported a significant decline in revenue for the previous year. Revenue fell by USD 6.7 million (MVR 103 million), representing a 9 per cent decrease from 2022, which had seen revenue of USD 7.3 million (MVR 113 million). The company’s gross profit for 2023 was USD 1.4 million (MVR 21 million), marking a 41 per cent decrease from the previous year’s profit of USD 2.5 million (MVR 38 million).

The reduction in revenue is attributed to the termination of the sublease for Haa Dhaalu atoll Naagoshi. Additionally, the decline in profit is linked to an increase in deferred tax liabilities.

MTDC had returned to profitability in 2021 after an eleven-year period, driven by favourable changes in agreements for leased islands. The company primarily generates income through leasing islands designated for tourism.

Looking forward, MTDC has announced plans to begin development of Haa Dhaalu atoll Naagoshi as a resort in the last quarter of this year. The island has been undeveloped for 17 years despite its tourism designation.

During the AGM, MTDC Managing Director Ahmed Niyaz acknowledged the challenges faced in developing Naagoshi. He assured that preparations are underway to commence work on the island later this year.

The initial contract for developing Naagoshi as a resort was awarded to Russian firm Threek International Pvt Ltd in 2007. This contract was terminated in 2016 due to incomplete construction and unpaid rent. At that time, 37 per cent of the work had been completed.

In 2017, the government reclaimed Naagoshi from MTDC. The island was re-leased to MTDC in 2020, with an agreement to develop the resort with Dubai’s Galadari Holdings. This agreement was also terminated last year due to a lack of progress, contributing to the revenue decline.