Orange said its board of directors has proposed to cut the 2019 dividend in response to the Covid-19 crisis, from EUR 0.70 to EUR 0.50 per share. Alongside this reduction of nearly 30 percent, the group has decided to review the objective to distribute a EUR 0.70 per share dividend over the 2020-2023 period, saying that a reassessment will be carried out at a later date in light of the evolving situation. The board of directors has also provided for the right to offer shareholders the option of being paid a 2020 interim dividend in Orange shares.
The announcement comes amid increasing pressure on French companies to review their dividend policies. At the end of March, the government said that any business applying for state financial support during the current crisis would be requested to scrap dividend payments to shareholders. Trade unions have called for all companies in the country to scrap dividends, starting with state-backed groups.
Commenting on the company’s financial performance, CEO Stephane Richard said that “Orange does not expect a significant deviation from its 2020 objectives”, while adding that management is closely monitoring developments during the crisis.
