#Swissport Tanzania’s profits decline as cargo and passenger volumes shrink

NO DIVIDEND FOR SWISSPORT SHAREHOLDERS AS PROFITS GO DOWN BY 27 PERCENT

(Posted 07th November 2017)

Profits fell from last year’s 8.64 billion Tanzania Shillings to only 6.27 billion Tanzania Shillings, a drop by over a quarter compared to the same period in 2016.
It is understood that this was to a large part caused not by competition, which proved to be largely inferior so far, but by a drop of 7 percent in handled cargo and a reduction of 10 percent in flight movements handled by the company.
This led to a revenue drop of 12 percent and subsequent considerations by the board of directors not to declare an interim dividend but to retain the funds for investments.
The trend of lesser cargo and flight movements speaks a clear language in the face of official assurances that the economy was doing well as local media are finding themselves between a rock and a hard place to accurately report on realities like this one.
It remains to be seen if the company will declare a dividend when the year end results are in.

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