(AOF) – The FDJ announces a turnover for the first quarter of 710 million euros, an increase of 7%. The games of chance operator specifies that its turnover from gaming activities in France reached 645 million euros, an increase of 3%, with a high basis of comparison in the first quarter of 2023. The dynamics of online games is “good” with a turnover of 100 million euros, or almost 15% of the turnover of the group’s gaming activities. The completion of the takeover bid for Kindred remains subject in particular to obtaining regulatory authorizations.
“All of our activities are growing, thanks to our network of more than 29,000 points of sale and the continued strong momentum of digital games, which today represent 15% of the turnover of the company’s gaming activities. group”, summarizes CEO Stéphane Pallez.
“FDJ had a good start to the year, in line with its 2024 objectives,” he added. In February, the group announced that it was targeting an increase in turnover from lottery and sports betting and competing online gaming activities in France of around 5%, and 8% for the group. The EBITDA margin during 2024 should be around 24.5%.
AOF – LEARN MORE
Find out more about the FDJ
Key points
– Second European lottery, created in 1933 and 4th worldwide, key player in sports betting in France with 50% market share under the brands Loto, Cash, Parions Sport, etc.;
– Turnover of €2.5 billion achieved 77% in lottery, 19% in sports betting & online games and the rest in diversification – payment & services, entertainment, international;
– “Raison d’être” business model based on 4 pillars – the games offering, the societal model, territorial anchoring and sustainability:
– benefiting from a regulated framework, a lottery monopoly guaranteed for 25 years and a network of 30,000 points of sale ensuring regular growth in sales;
– aiming to become a leading international player in games and services;
– Capital held at 20.46% by the French State (27.11% of voting rights), the veterans’ mutual (15.16% and 19.82%), Stéphane Pallez being president and CEO of the board of directors administration of 15 members;
– Unlevered balance sheet with €925 million in equity, €941 million in net surplus at the end of June 2023 and €1 billion in cash.
Challenges
– Strategic plan 2020-2025:
– in 3 points: lottery dynamics, progression of sports betting and growth levers (export of expertise, new services at points of sale),
– increased objectives: annual increase of 4 to 5% in revenues including 20% from digital investments, operating margin rate of +25% and distribution rate of 80 to 90%;
– Innovation strategy: commitments, for €75M, in start-up financing funds (300 supported) with 2 own investment funds, Aria and V13Invest and, internally, an inno Lab;
– Environmental strategy aimed at a 50% reduction in CO2 emissions in 2025 vs. 2017 for the entire value chain, scope 1 carbon neutrality having been achieved in 2019 by financing carbon offset projects;
– Acceleration of distribution activities in the physical network – invoices from public treasuries, payment services under the Nirio brand for landlords or energy companies, etc. – and the rise of digital (nearly 13% of total stakes);
– International development with the acquisition of Premier Lotteries Ireland and recovery of the British Sporting Group;
– Strategic visibility with the confirmation by the State Council of the gaming monopoly.
Challenges
– Uncertainties regarding the maintenance of the participation in the Chinese BZCP;
– Spinoffs from investments in online games: in online poker, in sports betting in France through the acquisition of Zeturf (20% of horse racing betting in France) and, through partnership with Scientific Games, in scratch games phygital;
– After growth of 6.3% in revenues and net profit in the first half, 2023 targets raised: revenues up +5% and margin rate stable around 24%.
Find out more about the “hospitality and leisure” sector
Global tourism still on the rise
Over the first nine months of 2022, 700 million tourists traveled internationally, more than double (+133%) the figure recorded for the same period in 2021. This figure reached 63% of 2019 levels , which should allow the sector to reach 65% of its pre-pandemic levels in 2022. This result is due to a high level of demand and the gradual lifting of restrictions in a large number of countries. Europe is significantly supporting this rebound with the arrival of 477 million people between January and September 2022 (68% of the global total), reaching 81% of the pre-covid level. Tourism there is driven by strong intra-regional demand and travel from the United States. Some destinations saw notable increases in revenue, including Serbia, Romania, Turkey, Latvia, Portugal, Pakistan, Mexico, Morocco and France.