Francais des Jeux (FDJ), a French lottery and betting operator came to a difficult decision to cut its dividend by 30%. This comes after its sales in Q1 dropped due to the impact of the novel coronavirus.
The 30% dividend cut results in a dividend payout of 0.45 euros per share, while overall group revenues fall 1% from a year earlier to 511.2 million euros.
Stéphane Pallez, Chairwoman and CEO of Group FDJ said “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.”
