SBC News Voice of the Sports Betting Industry
Française des Jeux’s (FDJ) H1 revenue climbed 11% YoY to €1.4bn thanks to contributions from Zeturf and Premier Lotteries Ireland (PLI) and a 15% rise in its online betting and gaming activities to €294m that were boosted by “exceptionally favourable” sports results.
The Zeturf and PLI acquisitions helped the group’s digital revenues rise 40% to €201m (+25% like-for-like) thanks to an increase in player numbers, and digital’s share of group revenues is now at 15%.
Period trading saw the Francaise des Jeux (FDJ) lottery unit achieve net income of €1.05bn, a 5% increase on H1 2022 results of €958m.
FDJ’s lottery performance was buoyed by the success of new instant win game launches and higher customer engagement with ‘more attractive’ EuroDreams and EuroJackpot draws. Leadership underscored a positive commercial outlook for the lottery, as FDJ’s Amigo retail network returned to its full technical capacity from the beginning of June.
Though FDJ registered sports betting growth, accounts detailed that “second quarter, betting on the Euro football championship fell short of expectations, but revenue was boosted by results that defied the odds and therefore played in the operator’s favour”.
H1 accounts saw FDJ report on its new unit of international and payment services, contributing revenues of €129m.
Strong prospects were cited for FDJ new unit as its launches its Nirio payment solution for free-flow motorway toll payments and across its network of approved bars, tobacconists, and newsagents. The service is further available to customers on the A14 and A79 motorways.
Group EBITDA was up 23% to €370m with sports betting margins coming in at 26%. The group confirmed its 2024 revenue growth targets of c8% and c5% for gaming activities in France.
As its acquisition target Kindred commented yesterday, FDJ said its discussions with France’s competition authorities were progressing as planned, and the timing of a decision on the buyout remains set for November. Prior to its results announcement, there had been rumours the deal might be waved through this month.
Stéphane Pallez, Chairwoman and CEO of the FDJ Group, was reappointed to her role for a four-year term. Commenting on the results, she said they “confirmed the positive trend” and “digital momentum” seen since the start of the year.
She added that the FDJ hoped “to finalise the acquisition project of Kindred in the near future, thereby marking a major new step in the Group’s development, both internationally and in our online sports betting and gaming activity.”
