FDJ Reports Strong 1st Quarter Revenue
Introduction
La Française des Jeux (FDJ), France’s leading gaming operator, has announced its revenue for the 1st quarter of 2024.
Positive Start to the Year
Stéphane Pallez, Chairwoman and CEO of the FDJ Group, expressed satisfaction with the company’s performance, stating that FDJ has made a good start to the year, aligned with its 2024 objectives. Pallez highlighted the growth of all their activities, attributing it to their extensive network of over 29,000 retailers and the success of their dynamic online gaming business, which now accounts for 15% of the Group’s gaming revenue. Pallez also mentioned their ongoing plan to acquire Kindred, which was announced at the end of January.
Key Highlights of the 1st Quarter
The 1st quarter of 2024 saw FDJ report a revenue of 710 million euros, representing a 7.2% increase compared to the same period in the previous year. Let’s take a closer look at the breakdown of their revenue:
Lottery Revenue
FDJ’s lottery revenue rose by 1.4% to 504 million euros. This growth was driven by a more than 4% increase in instant games, specifically the successful launch of Ticket d’Or (€5) in early January. However, draw games, mainly affected by the unfavourable base effect, particularly for Amigo, experienced a decline of 3%. Without considering Amigo, which has stabilized after the launch of its new formula in June 2023, lottery revenue would have grown by more than 4%.
Sports Betting and Online Gaming
Revenue from sports betting and competitive online gaming reached 141 million euros, demonstrating a notable increase of 9.5%. Excluding the integration of ZEturf and considering the high comparison base set by the 1st quarter of 2023, revenue still increased by 0.9%. The positive performance of ParionsSport En Ligne, with more than 25% growth, along with the attractiveness of poker and its high level of cross-selling, contributed to this achievement.
Other Activities
FDJ’s revenue from other activities, including international operations and payment services, amounted to 65 million euros in the 1st quarter of 2024, compared to 37 million euros during the same period in 2023. This significant increase was mainly due to the successful integration of PLI, driven by EuroDreams.
Online Games
The momentum of FDJ’s online games remained strong, experiencing revenue growth of over 30% to reach 100 million euros. This revenue constituted almost 15% of the Group’s total gaming revenue. Online games, excluding ZEturf and PLI, demonstrated growth exceeding 20%, fueled by both sports betting and online gaming open to competition, as well as the online lottery. The online lottery capitalized on EuroDreams’ high rate of digitalization and the appeal of instant games and the exclusive online offerings.
Tender Offer for Kindred
FDJ initiated a tender offer for Kindred on February 20, 2024, for a maximum of 39 weeks. The completion of the offer is subject to regulatory approvals and FDJ acquiring at least 90% of Kindred’s share capital. During this process, Kindred’s shareholders approved an amendment to the Articles of Association, allowing a squeeze-out procedure to be implemented by any shareholder holding at least 90% of Kindred’s share capital. Additionally, FDJ exercised its right of pre-emption for 49% of Veralda’s Kindred shares.
As a result, FDJ acquired 2.4 million Kindred shares, Veralda’s irrevocable commitment still applies to its remaining stake, and the irrevocable commitments from various shareholders now represent 26.82% of Kindred’s outstanding shares.
Upcoming Events
FDJ’s Annual General Meeting will take place on April 25, 2024, at the Palais des Congrès in Issy-les-Moulineaux. During the meeting, the Group will propose a dividend of 1.78 euros per share for the 2023 financial year, payable on May 7, 2024.
Furthermore, FDJ will release its half-year results on July 25, 2024, after the close of trading.