Groupe FDJ states that it is back to its ‘intended Paris IPO trajectory’ following ‘very strong 2022 results’, benefitting from France’s post-COVID recovery and World Cup 2022 performance.
Publishing its full-year 2022 results, FDJ achieved corporate revenues of €2.49bn, up 9% on FY2021 comparative results of €2.2bn.
The Paris EuroNext group hailed an “exceptional environment” for all units that achieved growth as group wagering/sales across lottery and sports betting hit the €20bn mark (FY2021: €18.9bn).
The uninterrupted performance of FDJ’s lottery network, which operated a ‘stable 30,000 points of sale’, generating €18bn in sales/stakes as the unit achieved headline revenues of €1.9bn, up 11% on FY2021 results of €1.7bn.
Lottery growth was buoyed by the Parions Sport unit outperforming record 2021 comparative results, delivering wagers of €2.5bn (+16%) and revenues of €500m (+2%).
FDJ cited that Parions Sport would have achieved record-breaking results but was hindered in Q4 by France’s strong performance at World Cup 2022, impacting payout ratios, which were 6% above standard trading.
Group costs of sales increased by 8% to €1.33bn, which reflected a payout of €965m to lottery POS retailers and further retail commissions of €324m.
In addition, FDJ accounted for a higher marketing expenditure of €461m during FY2022. Yet, marketing expenses were allocated to promoting digital products and upgrading creative designs, as TV advertising remained stable, in respect of new rules imposed by l’Autorité Nationale des Jeux (ANJ).
Accounting for operating costs, FDJ’s recurring EBITDA stood at €590m, up 13% on FY2021 corresponding results of €522m, helping the company declare net profits of €308m (FY2021: €294m).
FDJ President, Stéphane Pallez, commented: “FDJ recorded very strong results for the year as a whole, marked by an increase in all of our business activities, supported by significant growth in our 30,000 points of sale and sustained momentum online.”
This good performance benefits all our stakeholders, in particular our employees, our retailers and our shareholders. The Group also continued to strengthen its social commitments, in particular its actions to prevent excessive and underage gambling. The Group is confident in its strategy and its prospects to “create balanced value in the medium term.”
FDJ concluded its update by announcing its FY2023 targets to achieve “+€2.5bn revenues (+5%), with a maintained recurring EBITDA margin of 24%.”
2023 targets will be supported by FDJ integrating its new payment assets of Aleda and L’Addition to upgrade the payment capabilities of the FDJ lottery network.
Elsewhere FDJ seeks to complete its acquisition of ZeTurf Group by H1 2023, which will expand its sports betting services within French horse racing.