(AOF) – The FDJ, the leading gambling and gambling operator in France, has announced its 2022 results and confirmed its outlook for 2023. Net income came to 308 million euros, up 4.7 %. Current operating income amounted to 459 million euros against 393 million euros, up 16.8%. Turnover was up by 9.1%, at 2.46 billion euros, in line with the increase in stakes, in particular on the occasion of the FIFA World Cup in Qatar.
Current EBITDA amounted to 590 million euros, up +13%, thanks to strong growth in point-of-sale activity and dynamic digital growth. The current EBITDA margin on sales was 24%, up +90 basis points.
In line with the medium-term objectives presented at the Investor Day in November 2022, the 2023 objectives are based on an increase in turnover between +4% and +5%, on the basis of a 2022 financial year integrating the acquisitions of Aleda and L’Addition for a full year, i.e. €2,514 million, growth of around +20% in digital stakes and a current EBITDA margin rate maintained at around 24%.
At the same time, the group will continue to develop its societal commitments, in particular in favor of the fight against underage gambling and excessive gambling.
FDJ’s Board of Directors will propose to the General Meeting of April 27, 2023 a dividend of €1.37 per share, up +10%, i.e. a payout rate of 85%, to be paid on April 9 May 2023.
Stéphane Pallez, Chairman and Chief Executive Officer of the group, declared: “FDJ recorded very good results over the whole year, with progress in all its activities supported by significant growth in its 30,000 points of sale and continued the dynamics of digital. This financial and extra-financial performance reinforces the Group’s strategy, confident in its prospects for balanced value creation in the medium term.”
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Key points
– Second European lottery, created in 1933 and 4
th
global player, a leading player in sports betting in France under the Loto, Cash, Euromillions, Parions Sport brands, etc. with 50% market share in France;
– Turnover of €2.3 billion achieved 76% in the lottery, 21% in sports betting then in the diversification driven by the Acceleration business units;
– “Raison d’être” business model based on 4 pillars – the game offer, the societal model, territorial anchoring and sustainability: benefiting from a regulated framework, a guaranteed lottery monopoly for 25 years and a network of 30,000 points of sale ensuring steady growth in sales / aiming to become a leading international player in games and services;
– Capital held at 20.46% by the French State (27.42% of the voting rights), the mutual insurance fund for veterans (14.78% and 19.31%), Stéphanie Pallez, President and CEO of the Board of administration of 13 members;
– Solid financial position with €829 million in equity and a net cash surplus of €891 million.
Challenges
– 2020-2025 strategic plan: in 3 points: lottery dynamics, growth in sports betting and growth levers (export of expertise, new services at points of sale) / with enhanced objectives: annual increase of 4 to 5% revenue with a doubling to 20% of digital stakes, operating margin rate of + 25% and distribution rate between 80 and 90% from 2022;
– Innovation strategy: multiplied from the technological infrastructure owned, resulting in cost optimization, better knowledge, segmentation and loyalty of customers, an increase in the power of the digital offer and the acceleration of B2B services: partnerships with venture capital funds in start-ups, launch of 2 own investment funds, Aria and V13Invest and, internally, an inno Lab;
– Environmental strategy: reduction of CO2 emissions by 20% between 2017 and 2025, carbon neutrality since 2019 by financing carbon offset projects;
– Expansion of the e-sport offer with rumors of an upcoming launch of online poker;
– Acceleration of diversification activities: international B2B offer and payments & services strengthened by the acquisitions of Aleda and L’Addition.
Challenges
– Uncertainties on the maintenance of the stake in the Chinese BZCP;
– After a 12% increase in revenues and 9% in net profit on 1
er
semester, 2022 objectives confirmed of an increase in turnover of almost 5% and a margin rate of at least 23.5%.
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World 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 strong 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 recorded notable increases in receipts, including Serbia, Romania, Turkey, Latvia, Portugal, Pakistan, Mexico, Morocco and France.