Multimedia betting, gaming and content production company FL Entertainment has reported a strong performance across the board in Q3, despite the liquidation of its bet-at-home brand, with trading bolstered by the Betclic sportsbook and Banijay content division.
Updating its Amsterdam Euronext investors on third quarter and year-to-date trading performance, the Paris-based multinational company reported group-wide revenue of €2.7bn from January-September, improving 15% on the year prior (€2.3bn).
This was accompanied by a 17.5% increase in adjusted EBITDA from €379.8m to €446.4m, with a margin of 16.5% (16.1%), with operating profit rising by 2.2% from €133.9m in 2021 to €154.1m in 2022.
With regards to sports betting, much of the success was driven by its Betclic brand, a French international operator headquartered in Bordeaux and Malta, offsetting challenges faced by Germany-facing bet-at-home.
“Our online sports betting & gaming business performed very well also, with an outstanding earnings growth, driven by its appealing digital platform and lean cost structure,” said François Riahi, FL Entertainment CEO.
“With an 11% growth in unique active players year on year, Betclic is well placed to capitalise on opportunities from the football world cup, underpinned by its robust commitment to the highest standards of responsible gaming.”
FL’s sportsbook and gaming division experienced a ‘strong rebound’ in Q3, the firm explained, with revenue rising by 29% to €194.m (€150.4m) during the quarter and 5.7% YTD from €559.1m to €591m.
Sports betting was the primary revenue generator for the gaming unit with quarterly income of €154.8m (€111.8m) and YTD earnings of €477.1m (€445.6m), corresponding to a 38.5% and 7.1% growth rate respectively.
This was followed by igaming with €25.3m (€26.9m) quarterly and €71.8m (€76.9m) YTD – both marking a decline on the previous year – and poker €11.7m (€10.5m) during Q3 and €34.9m (€32.1m) for the full nine months.
Formed in May via a SPAC merger with Pegasus Entrepreneurs, FL Entertainment launched on the Euronext in July, but the group’s start to public trading was dragged by some sportsbook hurdles.
However, the firm still recorded H1 revenue of €1.80bn, up 18% on the corresponding 2021 results of €1.51bn reported by its now merged assets of Banijay Group and Betclic Everest.
Of the two, Banijay Group has proven to be the most profitable throughout the year, with the firm’s Q3 report stating that the content product and distribution asset’s revenue rose 3.4% YoY to €717.6m (€694.2m).
“In an inflationary environment with several macroeconomic challenges, FL Entertainment is focused on driving productivity gains, particularly in content production, to protect margins and strong cash generation levels,” Riahi concluded.
“The positive momentum seen in the year to date, combined with our leading positions in attractive and growing segments of the entertainment industry, puts us in a strong position to maintain continued sustainable growth in line with our 2022 guidance and mid-term outlook.”