(AOF) – La Française des Jeux (FDJ), the leading operator of gambling and gambling in France, published its results for the third quarter of 2022 marked by an increase in its turnover: more 12% to 592 million euros. For the lottery, the increase in turnover (+14% to 478 million euros) was driven by that of bets (+11%) with draw bets up by +17%, at 1,629 million euros. euros as well as instant games stakes up +7%, at 2,379 million euros, with the success of the animations of the games portfolio.
For sports betting, the stability of turnover (97 million euros) and stakes is attributable to a high 2021 comparison base, with the semi-finals and final of UEFA Euro 2020 in July. The 9% increase in stakes in August and September reflects good momentum driven by sports news.
Income from other activities increased from 3 to 18 million euros.
The group indicates that its 2022 outlook is improved compared to the forecasts at the start of the year. The performance at the end of September was higher than the Group’s forecasts, after in particular a first half of which the results were amplified by a comparison base affected by the health crisis in the 1st half of 2021.
FDJ forecasts second-half revenue growth of +6%.
Thus, over the full year, FDJ now anticipates an increase in turnover of more than 8% and an EBITDA margin rate of around 24%.
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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%.
Out of the crisis for the cruise
The recovery is tangible in Europe. MSC Cruises, the leading European company, resumed operation of its entire fleet in June, i.e. 19 cruise ships – including 14 in the Mediterranean. Similarly, the Costa group, a subsidiary of the American cruise giant Carnival, should operate all of its liners (24 in number) by the end of the year. On the other hand, China remains on the sidelines of the general movement, due to its extremely restrictive health policy. The Cruise Lines International Association (CLIA) expects the industry to return to its 2019 record traffic of a total of 32 million cruise passengers by the end of 2023.