News: HVN UPDATE 1-Harvey Norman to pay special dividend after domestic sales jump

(Adds details on H2 to date sales, background)

June 10 (Reuters) - Australia's No. 2 electronics retailer Harvey Norman Holdings Ltd (HVN) reported on Wednesday a 17.5% jump in second-half sales to date at its domestic franchisees and said it would pay a special dividend.

The surprise announcement comes at a time when most firms have either nixed or deferred dividend payments to save cash and weather a coronavirus-induced downturn.

Harvey Norman, which scrapped its regular dividend and cut management pay in April, announced a special 6 cents-per-share payout for its shareholders.

It said sales at Australian franchisees benefited as all but two of its franchised complexes remained open through the coronavirus pandemic.

Harvey's stores abroad were shut for weeks due to virus-enforced restrictions, leading to a 7.3% drop in second-half sales to date from New Zealand and an almost 22% slide in Singapore, where its shops are still closed.

New Zealand made up a third of the company's total revenue for 2019, while Asia contributed nearly a fifth of sales.