La Française des Jeux (FDJ) recently unveiled its financial report for the first quarter of 2024, showcasing a notable increase in total group revenue.
Total Group Revenue
FDJ’s Q1 2024 revenue totaled €710 million ($755.6 million), representing a 7% year-on-year increase from €662 million in the same period last year. However, when adjusted for a like-for-like comparison, the growth rate narrows to 1.1%, emphasizing the importance of understanding underlying trends.
Gaming Revenue Highlights
Gaming revenue in France saw a 3% uptick to €645 million. Notably, online games contributed €100 million to the total gaming revenue, indicating a growing reliance on digital platforms.
Other Activities Segment Growth
FDJ’s other activities, which encompass payment and services along with international operations, surged by an impressive 77.4% to €65 million compared to Q1 2023. However, on a like-for-like basis, this segment declined by 3.7%.
Sports Betting and Online Gaming
The sports betting and competitive online gaming sector expanded by 9.5% year-on-year to €141 million. Excluding the impact of the Zeturf acquisition, the growth rate remained steady at 0.9%.
Lottery Revenue
The lottery remains FDJ’s primary revenue driver, generating €504 million in Q1 2024—a 1.4% increase over the previous year. The successful launch of the €5 ticket (Ticket d’Or) in January contributed to this growth. Excluding Amigo, lottery revenue would have seen a stronger 4% increase.
Strategic Acquisitions and Kindred Offer
FDJ made significant strides with its tender offer for Kindred, a major player in online gambling. The acquisition process, initiated in February with shareholder approval in March, signifies FDJ’s strategic expansion and diversification efforts.
Kindred Acquisition Details
During Q1, FDJ acquired 2.4 million Kindred shares for SEK 294 million ($26.7 million), amassing 1.12% of Kindred’s outstanding shares. Additionally, irrevocable commitments from key stakeholders, including Eminence Capital, represent 26.8% of Kindred’s shares.
FDJ’s Q1 2024 financial results depict a dynamic landscape with overall revenue growth tempered by nuanced like-for-like comparisons. The company’s emphasis on digital platforms, strategic acquisitions, and product innovation underscores its adaptability in a competitive market. Looking ahead, FDJ’s focus on diversification and expansion sets a promising trajectory for future growth and market leadership.