FDJ Reports 4% Revenue Growth in 9 Months

Solid Growth and Acquisitions

On a like-for-like basis, the company achieved a 1% growth, which rises to an impressive 5% when excluding Amigo and Euromillions. The lottery segment recorded sales of €1,407 million, a slight decline of 1%, but a remarkable 3% growth when excluding the impact of Amigo and Euromillions.

The reduction in Amigo’s revenue is attributed to regulatory-driven adjustments to the game formula, while Euromillions suffered from a drop in high jackpot draws, especially during the third quarter. Despite these challenges, competitive sports betting and online gaming open to competition continued to perform well, contributing to a 9% revenue increase, reaching €360 million.

Expansion and Strengthening

FDJ’s expansion took a significant step forward with the successful acquisition of ZEturf at the end of September. With this move, FDJ becomes the 4th largest operator in the competitive sports betting and online gaming market in France, holding a market share exceeding 10%. The addition of ZEturf, the second-largest online horse betting operator in France, further solidifies FDJ’s position in the market.

Moreover, the acquisition of Premier Lotteries Ireland (PLI), authorized by the Irish lottery regulator in early October and expected to be finalized in November, marks a major milestone in FDJ’s international strategy. PLI recorded gross gaming revenue (GGR) of €399 million in 2022, and this acquisition is set to strengthen FDJ’s presence in the international B2C lottery market.

Future Prospects and Commitments

Looking ahead to 2023, FDJ sets ambitious targets, aiming for revenue growth of around 5%. On a like-for-like basis, this translates to a growth rate between 1.5% and 2%. These goals are backed by maintaining the current EBITDA margin at approximately 24%, driven by rigorous cost management.

In addition to these financial milestones, FDJ anticipates a substantial increase in financial income, nearly doubling the figures reported at the end of June. The company also reiterates its commitment to distribute between 80% and 90% of its consolidated net income.

Our comment on the article

La Française des Jeux (FDJ) has displayed solid financial performance in the first nine months of 2023, reporting a 4% increase in revenue. This growth is even more impressive when we consider that it rises to 5% when excluding the impact of Amigo and Euromillions. While the lottery segment experienced a slight dip, competitive sports betting and online gaming open to competition delivered an impressive 9% revenue increase.

The strategic acquisitions of ZEturf and Premier Lotteries Ireland (PLI) are set to bolster FDJ’s position in the market, with ZEturf’s integration making FDJ the fourth-largest player in the sports betting and online gaming sector in France. The PLI acquisition marks a significant step in the company’s international expansion strategy.

Looking ahead to 2023, FDJ maintains ambitious growth targets, anticipating a revenue increase of around 5% and the maintenance of a 24% EBITDA margin. These goals are supported by rigorous cost-control measures. Additionally, FDJ expects a substantial increase in financial income and remains committed to distributing a significant portion of its consolidated net income.

Overall, FDJ’s performance, expansion, and forward-looking goals indicate a promising trajectory for the company, cementing its status as a key player in the gaming and lottery industry.