SBC News FDJ hits lotto drags ahead of ZEturf and PLI enlargement

FDJ hits lotto drags ahead of ZEturf and PLI enlargement

Groupe FDJ has cited stable year-to-date trading ahead of its corporate expansion integrating the new assets of ZEturf and Premier Lotteries Ireland (PLI).

In a YTD trading update, FDJ revealed that corporate revenues to September stood at €1.87bn, up 1% on YTD 2022 comparatives.

Headline revenues remain on par with 2022 results, despite the Francaise des Jeux lottery unit recording a 1% decrease in YTD revenues to €1.4bn. 

Q3 trading saw FDJ encounter a slowdown in lottery due to a decrease in sales of its Amigo POS network “linked to the new game formula, revised at the request of the regulator” and Euromillions draws registering a drop in high value jackpots.

Retail adjustments saw the Francaise des Jeux unit register a 6% decline in like-for-like Q3 revenues to €449m (Q32022: €478m). 

Lottery declines were offset by the continued growth of FDJ’s sports betting and online gambling unit which achieved a 6% increase in Q3 revenues to €103m (Q32022: €98m).

On a YTD basis, FDJ sports betting and online gambling revenues stand at €360m (+9%), alongside a further €103m income generated from ‘non-core activities’. 

“Business growth, strong both at the point of sale and online, benefited from the continuing momentum of the FIFA World Cup at the end of 2022, despite a slightly less favourable football calendar in the 3rd quarter of 2023,” FDJ noted.

Period trading saw FDJ complete the acquisitions of ZEturf and Premier Lotteries Ireland (PLI) – branded as strategic deals to “enhance FDJ’s commercial profile”. 

Acquired for €175m, ZEturf is the French market’s second-largest horse racing operator. FDJ expects to double the revenues performance of its online sports betting unit.

It told investors: “The ZEturf acquisition enables the FDJ Group to become the fourth largest competitive online gaming operator in France (sports betting, horse betting and poker), with a market share of over 10%.” 

Announced in July, the €350m acquisition of PLI, the operator of Ireland’s National Lottery, is deemed as “a major step in the deployment of the FDJ Group’s international strategy”.

As authorised by the Irish government, FDJ is scheduled to take full control of PLI business from November onwards. “The strategic plan currently being drawn up jointly aims to accelerate PLI’s growth and increase its profitability,” it reported. 

Concluding its update, FDJ maintains its FY2023 targets of achieving a corporate revenue growth +5% and EBITDA margin of 24%. The firm’s corporate outlook is boosted as group income is expected to almost “double the figure recorded at the end of June”.

Stéphane Pallez, Chairwoman and CEO of FDJ Group, said: “Our growth remains solid, with strong players’ demand, even though it has been affected by the low number of Euromillions high jackpot draws. 

“At the same time, the completion of the acquisition of ZEturf at the end of September and the forthcoming closing of Premier Lotteries Ireland acquisition in November illustrate our strategy of internationalisation and diversification.

“We are delighted that the teams of these two operators are joining FDJ and that these operations will contribute to the Group’s sustainable and profitable growth.”

SBC News FDJ hits lotto drags ahead of ZEturf and PLI enlargement

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