(14 March 2006 – Australia) Bendigo Bank’s move into the telecommunication market through its Bendigo Community Telco (BCT) venture is paying dividends – literally.The telco, which floated on the Bendigo Stock Exchange in October 2005, will pay shareholders a dividend of 4.5 cents per share with the total payout amounting to A$251, 325.
Bendigo Bank managing director and BCT chairman Rob Hunt said the payment of the dividend showed that the telco was a viable, sustainable business.
The telco was launched in 2001, based on the same business model as Bendigo’s community bank. It has 420 shareholders based predominantly in Bendigo.
“BCT has succeeded because it is a very different business model. Local ownership means money is retained here in the local economy for the benefit of the whole community, and that is a big incentive for customers to support our business,” Hunt said.
He said Bendigo had a competitive edge that most regional centres would covet.