FDJ maintains growth as lotto loses shine in 2023

Groupe FDJ lauds its improved operating efficiencies to overcome a year of stagnant results in its flagship Française des Jeux (FDJ) lottery offering.

This morning, the Paris Euronext gambling group published its full-year 2023 accounts, declaring corporate revenues of €2.61bn, up 6% on FY2022 comparative income of €2.46bn.

Corporate leadership underlined new efficiencies achieved in 2023, as FDJ’s recurring EBITDA increased by 11.5% to €657m (FY2022: €590m), with earnings from business activities bolstered by an operating EBITDA margin of 25%.

The group’s improved earnings results bolstered FDJ’s net income profits to €425m, up 33% on FY2022 profits of €308m.

FDJ’s lottery trading in 2023 registered a 1% growth in sales (+€21m) to €1.91bn (FY2022: €1.90bn).

The stagnant growth of the FDJ lottery unit was attributed to performance being matched against 2022’s record of “43 high jackpot EuroMillions draws” engaging French customers.

Further impacts saw FDJ revise the ‘game formula’ of its AMIGO point-of-sales network as ordered by the French gambling regulator Autorité Nationale des Jeux (ANJ). As cited, “The revision notably concerns the reduction in the number of draws (with a suspension of 15 minutes per hour between 6:00 and 14:00) and the maximum amount per bet (€8 vs. €20).”

Lottery drags were offset by the continued growth of FDJ’s sportsbook and online gaming unit, which accumulated revenues of €518m, up 10% on FY2022 results of €467m.

FDJ lauded the ‘market share gains’ of its ParionsSport subsidiary, continuing to benefit from strong post-World Cup trading. FDJ’s sportsbook unit will be revamped by the addition of French racing operator ZeTurf – consolidated during the fourth quarter of trading.

Fulfilling its social mandate, FDJ declared that 2023 activities generated a “€3bn contribution to public finances,” distributed to French civic and cultural causes generating €6.6bn – “0.25% of Gross Domestic Product (GDP).”

Year trading saw FDJ accumulate a total cost of sales of €1.39bn, of which €983m was rewarded to French retailers and a further €643m to French suppliers, “mainly SMEs and mid-cap businesses.”

Marketing Costs (including IT expenses) remained at €455m, as FDJ cited that it had reduced advertising exposure in 2023.

Closing 2023 accounts, FDJ maintains a free corporate cash flow of €855m, a figure which includes a recent investment of €480m to acquire ZeTurf and Premier Lotteries Ireland.

FDJ proceeds into 2024 having put forth a ‘recommended all-cash offer’ to acquire Stockholm-listed Kindred Group Plc for €2.6bn – with the deal awaiting approval by investors.

Updating investors, Stéphane Pallez, Group CEO of FDJ Group, said: “FDJ delivered solid growth and results this year. The Group reached a major milestone in 2023 with the completion of the acquisition of Premier Lotteries Ireland and ZeTurf. The proposed acquisition of Kindred, announced at the end of January, will enable the creation of a European champion and significant value creation for the benefit of all stakeholders, in line with our model combining performance and responsibility.”