Fortuna Tumbles Most in Almost Two Years on Plan to Cut DividendKrystof Chamonikolas
Fortuna Entertainment Group NV fell the most since June 2013 after the Czech betting company announced a plan for a “substantial” dividend cut and its 2014 earnings missed analysts’ estimates.
The shares slumped 13 percent to 114 koruna by 3:07 p.m. in Prague, valuing the company at 5.9 billion koruna ($238 million). Traded volume on Fortuna shares on Thursday has been more than 13 times the daily average over the past three months.
Fortuna will pay out less to shareholders than the current 70 percent to 100 percent of profit to allow for “investments into future growth,” the company said in a regulatory filing on Thursday. Net income rose 2.3 percent last year to 15.9 million euros ($18 million), missing the 16.5 million-euro average estimate in a Bloomberg survey of four analysts.
“We consider the results disappointing,” analyst Milan Lavicka at J&T Banka AS in Prague said by e-mail. “The revision of the dividend policy is also a negative surprise as we had expected the pay-out ratio of about 85 percent to be sustainable over the long term.”