Lagardère Group has suspended its 2020 market guidance.

Lagardère Group has established a ‘Covid solidarity fund’ as the Paris-headquartered firm announces its shareholders will not receive a dividend.

The Group is contributing €5 million/$5.4 million to the fund, with deductions made from amounts initially allocated to the dividend payments.

It will provide backing for the Group’s initiatives to support its employees around the globe and, where possible, its partners who are suffering the effects of the crisis.

“These measures are in addition to the major action plans implemented by the Group from the outset of the crisis to mitigate its financial impacts and to enable operations to resume as soon as conditions allow, with the primary and constant concern of protecting its employees as well as all of its stakeholders,” read a statement.

Having taken note of government announcements, Lagardère Group’s managing partners and supervisory board have agreed not to pay dividends scheduled to be proposed at the firm’s annual general meeting on 5 May.

As reported, it had previously decided to modify the proposed ordinary dividend from €1.30/$1.4 to €1/$1.1 per share, and withdraw the stock dividend option, ahead of the meeting.

Lagardère Group has suspended its 2020 market guidance (originally issued as part of its full-year 2019 results) due to the negative effects of government lockdowns and shop closures on its operations in many countries.