PNG DataCo pays K6.2m dividend to KCH

PNG DataCo has presented 50 percent of its total net profit worth K12.3 million to Kumul Consolidated Holdings as dividend payment for 2023.

The state-owned enterprise declared a net operating profit after tax of K12,337,582 after last year’s financial window, contributing a K6.168m dividend to the government through KCH.

This was the third payment made to its shareholders since its establishment as an SOE in 2014.

“Today we witness the dividend payment of K6.168 million and we hope and strive to give a higher dividend in the next financial year,” DataCo chairman Dr Thomas Webster said when presenting the payment.

“I thank you our good Minister [William Duma, SOE minister] for your continued support together with KCH for the oversight and support to our business.

“I also wish to extend my gratitude to Mr. Paul Komboi and the Management Team for leading a team of capable Papua New Guineans under the Board's guidance for running a well-managed SOE and for returning value to our people through dividends to the State.

“The Information and Communications Sector is a capital-intensive industry which requires heavy upfront capex loading.

“Over the past 10 years, DataCo through the support of our Shareholder KCH and the Government of PNG had invested over K1.2 billion in Modern Digital infrastructure as part of the National Transmission Network and the related Digital infrastructure.”

DataCo’s first dividend payment of K1.53m was made in 2020 before the second presentation in 2022 which was worth K1.14m.

The SOE faced a serious financial issue when the three coral cables were damaged in 2021 in Madang.

This led to a loss of about K33m, in repairing cost, but a quick turnaround last year saw the company leapfrog its performance, resulting in a commendable net profit of K12.337m.

“DataCo is now well placed to provide critical digital infrastructure to support the Country’s digital transformation needs and demands,” Dr Webster said.

“There is still a lot of work to do to push the boundaries to bridge the digital divide and ensure our people and businesses participate in development as well as the digital economy in our beautiful country.”

State Enterprise Minister William Duma when receiving the payments said DataCo was amongst 3 leading SOE’s in the country.

Mr Duma said PNG Ports Corporation, Motor Vehicle Insurance Limited, and DataCo are the key government agencies that have proved robust financial performance.

The minister commended DataCo for demonstrating quality leadership at the board level, complemented by strong management under chief executive officer Paul Komboi.

“These are the sort of results we can achieve. We as a country can do it. And PNG DataCo, as we know, owns the national broadband network we have in this country, Internet services.

“We've got those domestic cable plus the overseas cable network. Very good, solid income-producing assets, but at the same time enabling our people to communicate and to use the Internet and the other services to conduct business in this country as well as overseas.

“So as far as the performance of DataCo for the last three years is concerned, from what I know and I can confirm that, it is one of the shining lights of the SOE group companies.

In addition to the dividend payment in cash, DataCo has also paid K14.7m tax comprising of GST [K9.6m] and other taxes worth K5.1m.

The company further made a K5.9m contribution to community service obligation through education, health, and government connectivity.