2024 targets confirmed
- Revenue of €1,428 million, up 11% compared with the first
half of 2023 and up 5% on a like-for-like basis1
- Revenue of gaming activities in France2 up 7% to €1,299 million
- Lottery revenue up 5% to €1,005 million, thanks to a good
performance from instant games and draw games
- Sharp rise in sports betting and online gaming open to
competition, up 15% to €294 million, boosted by sports results
exceptionally favourable for FDJ
- Very sharp rise in digital revenue to €201 million, up 40% when
including the acquisitions of PLI and ZEturf, and up 25% on a
like-for-like basis. This performance is still largely attributable
to the increase in the number of players and takes the digital
share of revenue to 15%. Point-of-sale revenue up 8% and up 3% in
France
- Recurring EBITDA of €370 million, up 23%, giving a margin of
25.9% which benefits from the exceptional effect of high sports
betting margin
- Adjusted net profit3 up 28% to €235 million:
Continued high level of net financial income
- 2024 targets confirmed: Revenue growth of around 8% for
the Group and around 5% for gaming activities in France. Recurring
EBITDA margin of around 24.5%.
Regulatory News:
La Française des Jeux (FDJ) (Paris:FDJ), France’s leading gaming
operator, announces its revenue and results for the first half of
2024.
Stéphane Pallez, Chairwoman and CEO of the FDJ Group,
said: “The second quarter confirmed the positive trend seen since
the beginning of the year thanks to our network of points of sale
and to a very strong momentum from digital games, which now account
for 15% of Group revenue. This solid performance confirms our
annual targets. In addition, we hope to finalise the acquisition
project of Kindred in the near future, thereby marking a major new
step in the Group's development, both internationally and in our
online sports betting and gaming activity, to the benefit of all
our stakeholders.”
Key figures (in €
millions)
H1 2024
H1 2023
Change
Revenue*
1,428
1,289
+10.8%
Recurring operating
profit
285
240
+19.0%
Net profit
213
181
+17.5%
Adjusted net profit**
235
183
+28.3%
Recurring EBITDA***
370
300
+23.5%
Recurring EBITDA margin /
revenue
25.9%
23.3%
* Revenue: net gaming revenue and revenue from other activities
** Adjusted net profit: With effect from the publication of the
2024 half-yearly financial statements, FDJ is introducing a new
indicator to reflect the Group’s actual economic performance and
enable it to be monitored and compared with its competitors. The
Group has decided to adjust consolidated net profit to eliminate
the following items:
- depreciation and amortisation of intangible and tangible
assets, recognised or revalued when allocating the purchase price
of business combinations
- the non-cash impact of the currency hedge relating to
acquisitions, which is recognised under other non-recurring
operating expenses
- and changes in deferred tax resulting from these items
*** Recurring EBITDA: recurring operating profit(/loss) adjusted
for depreciation and amortisation expense
Highlights of the first
half
- Renewal of Stéphane Pallez’s term of office as Chairwoman
and CEO
The Board of Directors of the FDJ Group has approved the
reappointment of Stéphane Pallez as Chairwoman and CEO for a
four-year term. This reappointment is part of the renewal of
Stéphane Pallez’s term of office as director, which was put to the
vote of FDJ shareholders at the Annual General Meeting on 25 April
and approved by 94.2% of the votes cast.
- Public tender offer for Kindred
On 20 February 2024, the tender offer for Kindred was opened for
a maximum period of 39 weeks. The completion of the takeover is
subject in particular to obtaining regulatory authorisations and
the acquisition by FDJ of at least 90% of Kindred’s share
capital.
At this stage, the authorisation decision of the French
Competition Authority (ADLC) is the last regulatory condition
necessary to finalise this offer.
On 14 May, FDJ notified the ADLC of its acquisition project of
the Kindred group by means of a tender offer. Following comments
from third parties and questions from the market, FDJ proposed
adjustments to the commitments it made in 2023 in connection with
the acquisition of ZEturf, relating to the separation of activities
under exclusive rights from those open to competition.
The Group estimates4 that it would have recorded combined
revenue of around €3.5 billion and combined recurring EBITDA of
around €840 million for the full 2023 financial year if Kindred had
been acquired on 1 January 2023, and combined revenue of €1.9
billion and combined recurring EBITDA of around €490 million for
the first half of 2024 if Kindred had been acquired on 1 January
2024.
- Cancellation of 3% of FDJ’s share capital following the
French Court of Cassation’s ruling in favour of the FDJ Group in
its dispute with Soficoma
This decision by the Court of Cassation results in the
cancellation of 5,730,000 FDJ shares and the corresponding
reduction in FDJ’s share capital, which now stands at 185,270,000
shares.
- Payment & Services: launch of Nirio Premio and a
free-flow motorway toll payment service
- At the end of April, Nirio, FDJ Services’ payment solution,
launched Nirio Premio, an offer combining an account domiciled in
France and a payment card, as well as budget management tools.
- Since the end of June, Nirio can also be used for free-flow
motorway toll payments, in cash or by card, in the network of
approved bars, tobacconists and newsagents. This payment is now
available to customers on the A14 and A79 motorways.
- Sustained social commitment in favour of responsible gaming,
inclusion and the environment
- Initiatives to prevent underage and excessive gambling have
been stepped up, with convincing results
- The proportion of gross gaming revenue from online lottery
generated by high-risk players is 1.6%5, compared with 1.8% at the
end of December 2023, which is below the 2025 target of less than
2%.
- The Group, which devotes 10% of its annual advertising spend to
preventing underage and excessive gambling, runs campaigns
reminding people that gambling is prohibited for minors and that it
is important to set limits to ensure that this practice remains
recreational.
- As with every major sporting event, FDJ stepped up its
prevention activities for the UEFA European Football Championship,
notably by increasing dedicated TV campaigns. In addition, almost
1,500 awareness-raising calls were made to sports betting players
before and during the Euro.
- “Héritage 2024”: the FDJ Foundation supports two inclusion and
education projects for a total of €3 million
- The FDJ Corporate Foundation is supporting two new projects as
part of its “Héritage 2024” call for major projects, for a total of
€3 million. The first, “ETRE et devenir”, trains young people who
have dropped out of school for careers in the ecological
transition. The second, “La récré sportive 100% inclusion”,
develops sporting activities for vulnerable children.
- A recognised commitment to reducing its carbon footprint
- For the third consecutive year, FDJ obtained an “A” carbon
score for the Vérité40 index established by the investment
consultancy Axylia, comprised of the 40 best carbon scores of SBF
120 companies.
- Continuation of the Group’s sponsorship of Office français de
la biodiversité (OFB)
- The FDJ Group has renewed its commitment to the French Office
for Biodiversity with the signing of a new sponsorship agreement
providing for support of €700,000 over two years. FDJ is keen to
continue its commitment as a “Major Sponsor” of the OFB by
supporting three new biodiversity conservation projects in France
and the French Overseas Territories.
First-half activity and
results
Gross gaming revenue (GGR) for the first half of 2024 was €3,660
million, an increase of 11.1%. After €2,304 million in public
levies, net gaming revenue (NGR) rose by 11.3% to €1,356
million.
After taking account of €72 million in revenue from other
activities, the Group’s first half revenue came to €1,428 million,
an increase of 10.8%, or +4.7% on a like-for-like basis.
Revenue (€m)
H1 2024
H1 2023
Change
€m
Change
%
of which on a like-for-like
basis
Lottery
1,005
958
+48
+5.0%
+5.0%
Sports betting and online gaming
open to competition
294
257
+37
+14.5%
+6.7%
International and Payment &
Services
129
75
+54
+72.9%
-5.8%
Group total
1,428
1,289
+139
+10.8%
+4.7%
Revenue of €1,428 million, up 10.8% and
up 4.7% on a like-for-like basis
- Gaming revenue in France rose by 7.0% to €1,299 million.
- Lottery revenue was €1,005 million, a rise of 5.0% and 7.8%
excluding Amigo. Digital momentum remains very strong, up 24.4% in
the first half, taking the lottery’s digital penetration to 13.8%
compared with 11.6% in H1 2023. Revenue from instant games rose by
6.7%, buoyed by the success of events in the games portfolio such
as the launch of Ticket d’Or (€5) in early January and the phygital
game Maxi Black Jack (€5) in May. Revenue from draw games was up by
2.1%, and by 9.8% excluding Amigo. This performance was driven in
particular by EuroDreams and more attractive Euromillions jackpots
than in H1 2023, while Amigo returned to growth at the beginning of
June.
- Revenue from sports betting and online gaming open to
competition was €294 million, up 14.5% from H1 2023, and up 6.7% on
a like-for-like basis . The first quarter performance had been
affected by the high comparison basis of the first quarter of 2023,
which had benefited in particular from the very positive impact of
the football World Cup at the end of 2022. In the second quarter,
betting on the Euro football championship fell short of
expectations, but revenue was boosted by results that defied the
odds and therefore played in the operator’s favour. Online business
continued to enjoy sustained growth, up 28.3% on a like-for-like
basis. This performance reflects the intrinsic dynamism of
ParionsSport en ligne, which is also benefiting from the
attractiveness of poker, with a high level of cross-selling.
Horse-race betting was stable, in line with the performance of the
market and on a par with the end of 2023.
- Revenue from other activities (International and Payment &
Services) came to €129 million, compared with €75 million in the
first half of 2023, an increase attributable to the integration of
PLI, which performed well, driven in particular by EuroDreams and
instant games.
- By distribution channel:
- Digital revenue has risen sharply, by 39.8% when including the
acquisitions of PLI and ZEturf, and by 25.1% on a like-for-like
basis. This growth was driven both by sports betting and online
gaming open to competition and by online lottery, which benefited
from EuroDreams’ very high level of digitalisation, as well as the
attractiveness of instant games and the exclusive online offer.
Digital revenue now accounts for 14.8% of total revenue compared
with 11.8% in H1 2023. This performance is still largely
attributable to the increase in the number of players.
- Point-of-sale (PoS) revenue rose by 7.5%, mainly due to the
integration of PLI. In France, point-of-sale revenue has risen by
2.6%.
- Contribution margin by
activity
The Group’s organisation is based on three operating segments:
two Business Units (BUs), Lottery and Sports betting and online
gaming open to competition, and the other activities, which bring
together developing businesses (International, and Payment &
Services), with cross-cutting support functions (notably customer,
distribution and information systems), and the holding company,
which mainly groups together central costs.
The contribution margin is one of the key performance indicators
for these segments. It is the difference between the revenue of the
operating segments and their cost of sales (including PoS
commissions) and marketing and communication expenses (excluding
depreciation/amortisation).
Lottery revenue was €1,005 million, a rise of 5.0%.
Cost of sales came to €536 million, up 1.8% (€9 million)
compared with H1 2023. It mainly comprises PoS commissions of €397
million, an increase of 1.0% in line with the network’s activity
over the period. Marketing and communication expenses rose by 5.7%
to €86 million.
The Lottery BU’s contribution margin came to €383 million,
representing a margin on revenue of 38.1%, compared with 36.4% in
H1 2023.
- Sports betting and online gaming open
to competition
Revenue from sports betting and online gaming open to
competition was €294 million, up 14.5% from H1 2023 and up 6.7% on
a like-for-like basis.
Cost of sales came to €125 million, up 1.5% (€2 million)
compared with H1 2023. This mainly corresponds to PoS commissions,
which are in line with the network’s stakes. Other sales costs rose
slightly due to the integration of ZEturf. Marketing and
communication expenses were €78 million. More than half of this
32.0% increase (€19 million) on the first half of 2023 is due to
changes in consolidation scope.
The contribution margin of the Sports betting and online gaming
open to competition BU was €91 million, representing a margin on
revenue of 30.8% compared with 28.9% in H1 2023.
Other activities (International and Payment & Services)
recorded revenue of €129 million, an increase attributable to PLI,
for a contribution margin of €25 million.
Central costs came to €128 million, virtually unchanged from H1
2023.
Recurring operating profit of €285
million and recurring EBITDA of €370 million, giving a recurring
EBITDA margin of 25.9%
Cost of sales came to €736 million, including €517 million in
PoS commissions (+4.9%), based on an increase in offline stakes,
driven in particular by the integration of PLI. The 5.4% rise in
other sales costs to €219 million was due solely to changes in
consolidation scope, mainly PLI.
Marketing and communication expenses include costs related to
the development of the gaming and services offer, particularly
digital offers and services, as well as advertising and
communication costs. They totalled €270 million, up 21.3% and 5.3%
on a like-for-like basis.
General and administrative expenses mainly include personnel
expenses and operating costs for central corporate functions, as
well as building and IT infrastructure costs. They totalled €115
million, down 2.8% compared with H1 2023.
Other operating income and expenses amounted to a €22 million
net expense, mainly comprising the amortisation charge for
exclusive operating rights to games in France and Ireland.
The Group’s recurring operating profit accordingly amounted to
€285 million, up 19.0% compared with H1 2023.
Recurring EBITDA corresponds to recurring operating profit
adjusted for depreciation and amortisation. It came to €370
million, up 23.5% compared with H1 2023. Net depreciation and
amortisation of tangible and intangible assets increased by €25
million to €85 million in H1 2024, mainly as a result of the €24
million depreciation of intangible assets recognised in connection
with the acquisitions of PLI and ZEbet / ZEturf in 2023.
As such, the recurring EBITDA margin was 25.9% in H1 2024,
compared with 23.3% in H1 2023.
Other non-recurring operating income and expenses amounted to a
€21 million net expense, compared with a €14 million expense in H1
2023. They mainly include costs related to acquisitions and the
impact of the revaluation of Sporting Group’s B2B assets, which are
in the process of being sold.
Operating profit for H1 2024 was €265 million, up 17.4% compared
with H1 2023.
The high level of net financial income (€23 million in H1 2024
compared with €19 million in H1 2023) reflects the continuing high
level of interest rates.
The Group’s tax expense was €78 million, representing an
effective tax rate of 26.9% for H1 2024 stable compared with H1
2023.
As such, consolidated net profit for H1 2024 amounted to €213
million, up 17.5% compared with H1 2023.
Adjusted net profit of €235 million, up
28.3% compared with €183 million for the first half of
2023
With effect from the publication of the 2024 half-yearly
financial statements, FDJ is introducing a new indicator to reflect
the Group’s actual economic performance and enable it to be
monitored and compared with its competitors.
The Group has decided to adjust consolidated net profit to
eliminate the following items:
- Depreciation and amortisation of intangible and tangible
assets, recognised or revalued when allocating the purchase price
of business combinations;
- The non-cash impact of the currency hedge relating to the
acquisition of Kindred Group, which is recognised under other
non-recurring operating expenses;
- And changes in deferred tax resulting from these items.
As such, adjusted net profit for H1 2024 was €235 million, up
28.3% compared with €183 million for H1 2023.
Net cash surplus of €616 million at end
June 2024
The net cash surplus is one of the indicators that represent the
Group’s net cash position6.
At 30 June 2024, the Group’s net cash position amounted to €616
million. The change from €671 million at 31 December 2023 is mainly
due to:
- Free cash flow of €346 million, after taking into account a
working capital surplus of €60 million and investments in property,
plant and equipment, intangibles and financial assets of €76
million;
- Partly offset by €329 million in dividends in respect of 2023
and €59 million in tax.
For information, the level of the net cash surplus at the end of
June cannot be extrapolated to the end of December, as there are
significant calendar effects on the payment of public levies, with,
in particular, an advance payment on public levies in December.
2024 Outlook
In light of the performance of the first half and taking into
account the integration of the ZEturf group and PLI at the end of
2023, respectively from 29 September and 3 November, FDJ is
reiterating its 2024 objectives of around 8% growth in total Group
revenue, and around 5% growth in revenue from gaming activities in
France, with a recurring EBITDA margin of around 24.5%.
The Board of Directors of FDJ met on 25 July 2024 and examined
the consolidated financial statements for the six months ended 30
June 2024, which were prepared under its responsibility.
The limited review procedures for the interim financial
statements have been performed. The statutory auditors’ limited
review report is currently being issued.
The condensed interim consolidated financial statements and a
financial presentation are available on the FDJ Group website:
https://www.groupefdj.com/en/publications-and-results/
Next financial
communication
FDJ will publish its revenue for the nine months to the end of
September on Thursday 17 October 2024 after close of trading.
About FDJ Group
France's leading gaming operator and one of the industry leaders
worldwide, FDJ offers responsible gaming to the general public in
the form of lottery games (draws and instant games), sports betting
(through its ParionsSport point de vente et ParionsSport en ligne
brands), horse-race betting and poker. FDJ's performance is driven
by a large portfolio of iconic brands, the leading local sales
network in France, a growing market, and recurring investments. The
Group implements an innovative strategy to increase the
attractiveness of its gaming and service offering across all
distribution channels, by offering a responsible customer
experience.
FDJ Group is listed on the regulated market of Euronext Paris
(Compartment A – FDJ.PA) and is part of the SBF 120, Euronext 100,
Euronext Vigeo 20, EN EZ ESG L 80, STOXX Europe 600, MSCI Europe
and FTSE Euro indices.
For more information, visit www.groupefdj.com
________________________________ 1 Excluding the contribution of
PLI and ZEturf over 2024, and Sporting's B2C over 2023. 2 Lottery
and sports betting under exclusive rights and online betting and
gaming open to competition. 3 See note** on next page. 4 FDJ has
estimated the combined revenue and EBITDA for the 2023 financial
year and for the first half of 2024 in order to illustrate the
significant effects that the Kindred acquisition would have had on
the FDJ Group if it had occurred on 1 January 2023 and 1 January
2024, respectively, and on the basis of the scope that would
effectively be retained by FDJ. This scope was announced on 22
January 2024, with the planned exit of Norway and other .com sites,
unless there is a clear opportunity for a local licence (for
example, in Finland, where a draft bill aims to introduce a
licensing system for online betting, online slot machines and
casino games by early 2027). Kindred has also announced its gradual
exit from the US market, to be completed by the end of the first
half of 2024. As Kindred has not published any financial
information on those markets in the scope of consolidation that the
Group has announced it will not retain, FDJ has estimated Kindred’s
revenue and EBITDA in this consolidation scope for the 2023
financial year and for the first half of 2024 without taking into
account potential synergies and exit costs and using a consistent
presentation of revenue. The average EUR/GBP rate used is 0,865675
for 2023 and 0,854647 for the 1 half of 2024. 5 At the end of June
2024, over a rolling 12-month period. 6 This corresponds to
non-current financial assets, current financial assets and cash and
cash equivalents, net of non-current financial liabilities and
current financial liabilities, less: current and non-current
deposits and guarantees given; cash subject to restrictions;
amounts allocated exclusively to Euromillions winners;
non-consolidated securities, mainly comprised of units in venture
capital funds (FDJ Ventures).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240725400502/en/
Media Contact 01 41 10 33 82 |
servicedepresse@lfdj.com
Investor Relations Contact 01 41 04 19 74 |
invest@lfdj.com
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