(AOF) – The diversified Idsud group announces the sale of 543,300 shares of the company La Française des Jeux, the leading gambling operator in France, for a total sale price of more than 18 million euros (i.e. a price average per share of 33.17 euros). These 543,300 shares represent 0.284% of the capital of FDJ. Following this operation, Idsud, historic shareholder of La Française des Jeux, retains a stake in FDJ in the amount of 2.797 million shares representing 5.594 million voting rights, or 1.464% of the capital and 1.938% of the rights. vote.
The Management Board, in agreement with the Supervisory Board, has decided to partially allocate the net proceeds from this sale to the reconstitution of Idsud’s equity as well as the reduction of its financial debt.
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.