April 30, 2020 / 7:31 AM / a month ago

BRIEF-Lagardere Considers Sufficient Liquidity For 2020, Cancels Proposed 2019 Dividend

April 30 (Reuters) - LAGARDERE SCA:

* FOR LAGARDERE PUBLISHING, ADVERSE IMPACT ON FULL-YEAR 2020 RECURRING EBIT COULD BE IN REGION OF 35% TO 40% OF DECREASE IN ITS REVENUE

* Q1 REVENUE FELL 12.5 PERCENT TO 1.361 BILLION EUR

* POSTS A RESILIENT PERFORMANCE IN THE FIRST QUARTER OF 2020

* ON CORONAVIRUS: GROUP IS TAKING FIRM CORRECTIVE ACTION TO MITIGATE IMPACTS OF CRISIS

* CANCELLING PROPOSED 2019 DIVIDEND TO BE PAID IN 2020

* REDUCING REMUNERATION PAYABLE TO EXECUTIVE COMMITTEE BY 20% UNTIL SUMMER AND FOR AS LONG AS SITUATION CONTINUES, ON INITIATIVE OF ITS MEMBERS

* CREATING A COVID-19 SOLIDARITY FUND TO FINANCE GROUP’S INITIATIVES IN SUPPORT OF ITS EMPLOYEES AND PARTNERS WORLDWIDE

* HAS SUFFICIENT LIQUIDITY FOR FULL-YEAR 2020

* FUND IS TO BE ENDOWED WITH EUR 5 MILLION DEDUCTED FROM CASH INITIALLY SET ASIDE TO PAY DIVIDEND

* IS CURRENTLY UNABLE TO ASSESS IMPACTS OF CRISIS ACCURATELY AND RELIABLY IN TERMS OF DECREASE IN REVENUE AND OPERATING PROFIT OF FULLY-CONSOLIDATED COMPANIES (RECURRING EBIT)

* AT 31 MARCH 2020, GROUP’S LIQUIDITY STOOD AT EUR 1,940 MILLION

* ADVERSE IMPACT ON FULL-YEAR 2020 RECURRING EBIT OF LAGARDÈRE TRAVEL RETAIL COULD BE IN REGION OF 20% TO 25% OF DECREASE IN ITS REVENUE

* REMAINS CONFIDENT IN ITS BUSINESS MODEL AS REFOCUSED ON LAGARDÈRE PUBLISHING AND LAGARDÈRE TRAVEL RETAIL

* LAGARDÈRE GROUP EXPECTS TO WEATHER COVID-19 CRISIS AND TO BE WELL PLACED TO PROACTIVELY BENEFIT FROM UPTURN IN ITS MARKETS Source text for Eikon: Further company coverage: (Gdansk Newsroom)

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