The French lottery and sports betting operator Francaise des Jeux (FDJ) has cut its dividend as the impact of coronavirus on its business led to a dip in Q1 sales.
FDJ said it would cut its dividend by 30% resulting in a dividend payout of 0.45 euros per share, while overall group revenues fell 1% from a year earlier to 511.2 million euros.
FDJ added it had already started looking at cost-cutting plans aimed at saving more than 80 million euros.
Stéphane Pallez, Chairwoman and CEO of Group FDJ: “Since the beginning of this unprecedented health crisis, the FDJ Group has strengthened its mobilisation to limit the effects on the company, its employees and its stakeholders in a spirit of responsibility and solidarity. The exceptional situation is already having very significant effects on the company’s activity. That is why we have decided to draw up a substantial cost-savings plan to limit the impact on the company’s results while preserving its ability to resume all of its activities as soon as possible. At the same time, we are continuing to take practical initiatives in support of our stakeholders, and above all our retailers. Against this backdrop, the Board of Directors has decided to propose to the Annual General Meeting of 18 June to maintain the payment of dividends on the 2019 results, but to cut the amount by 30% due to the uncertainties about the duration and scale of the consequences stemming from the current crisis in 2020.”
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