Francaise des Jeux’s H1 revenue hits €1.4 billion

Jade Denosta August 6, 2024

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Francaise des Jeux’s H1 revenue hits €1.4 billion

Stephane Pallez (pictured above), the reappointed Chairwoman and CEO of the Francaise des Jeux (FDJ) Group, has lauded the company’s recent performance and provided updates on the ongoing Kindred takeover.

The company’s H1 revenue surged by 11 percent year-over-year to reach €1.4 billion, driven by contributions from Zeturf and Premier Lotteries Ireland (PLI). Notably, FDJ’s online betting and gaming activities experienced a remarkable 15 percent increase, reaching €294 million, largely attributed to exceptionally favourable sports results.

The acquisitions of Zeturf and PLI fuelled a 40 percent rise in digital revenues to €201 million, with a 25 percent like-for-like increase in growing player numbers. Digital activities now constitute 15 percent of the group’s revenues, showcasing the increasing importance of online channels for FDJ.

The company’s lottery unit also posted strong performance, achieving a net income of €1.05 billion, marking a 5 percent increase compared to the H1 2022 results. Notable contributors to the lottery’s success were new instant win game launches and increased customer engagement with EuroDreams and EuroJackpot draws, described as “more attractive.”

Despite a slightly underwhelming performance in sports betting during the second quarter, FDJ benefited from unexpectedly favourable sports results, leading to a boost in revenue. Additionally, the company reported on its new international and payment services unit, which contributed revenues of €129 million.

FDJ expressed optimism regarding its new unit’s prospects, particularly with the upcoming launch of its Nirio payment solution for free-flow motorway toll payments and availability across its network of approved bars, tobacconists, and newsagents, as well as on the A14 and A79 motorways.

The group’s EBITDA increased by 23 percent to €370 million, with sports betting margins at 26 percent. FDJ also reaffirmed its 2024 revenue growth targets, aiming for around 8 percent growth and approximately 5 percent growth for gaming activities in France.

Expansion updates

In the context of potential expansion, FDJ provided updates on its discussions with France’s competition authorities regarding the Kindred takeover. The company confirmed that the process is progressing as planned, with a decision on the buyout expected in November.

Pallez expressed confidence in the company’s trajectory, emphasising the positive trend and digital momentum witnessed since the beginning of the year. She also highlighted the strategic move represented by the potential acquisition of Kindred, which holds the promise of major international developments for the group and in the online sports betting and gaming domain.