Shares in Vivendi sink 7.9 percent, its biggest one-day drop in nearly two years, after the French telecoms and entertainment group slashes its dividend and predicts a drop in core profit of up to 15 percent at its SFR telecom business, which has lost around 200,000 subscribers in the first two months of the year.
“The dividend cut is steeper than our warning in January. Positive surprise in Music and solid growth at ATVI and GVT (units) is offset by the warning at SFR,” Raymond James analysts write in a note.
So far this year, the stock is down 11.7 percent, lagging a 4.1 percent rise in the STOXX media index and a 2.2 percent fall by the STOXX telecom index.
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