FDJ Group (La Française des Jeux) has released its Q3 2023 financial results, showcasing a consistent performance in the face of shifting market dynamics. While Q3 revenue saw a marginal 1% decrease compared to the same period in 2022, FDJ remains optimistic about its future, with a focus on internationalization and diversification.
Steady Q3 Revenue Performance: A Look Back
Examining FDJ’s revenue for Q3, the operator recorded €586 million ($620.4 million), representing a slight decrease from Q3 2022’s €592 million. However, this dip is countered by growth compared to Q3 2021, when the company reported €529 million, and Q3 2020, with €504 million. The graph below illustrates this trend.
Revenue Breakdown: Strong Lottery and Betting Growth
Breaking down FDJ’s Q3 2023 revenue further, its lottery segment continues to be the primary revenue driver, contributing €449 million. However, this figure has experienced a 6% decrease year-on-year, falling from €478 million in Q3 2022. The notable exception is FDJ’s sports betting and online gaming open to competition division, which observed a 6% annual increase, reaching €103 million.
EBITDA Expectations and Stakes Analysis
FDJ expects its EBITDA margin to remain at approximately 24%, though an exact figure was not provided in the report.
In terms of stakes, FDJ witnessed a 3% annual decrease, totaling €4.80 billion compared to €4.95 billion in Q3 2022. However, online stakes grew by 6% year-on-year, reaching €679 million.
Stéphane Pallez, Chairwoman and CEO of FDJ Group, emphasized the solid growth in players’ demand despite challenges, particularly the impact of fewer Euromillions high jackpot draws. She highlighted recent acquisitions, such as ZEturf in September and the impending completion of the Premier Lotteries Ireland acquisition in November, as part of FDJ’s strategy of internationalization and diversification.
Share Price Performance and Market Capitalization
FDJ’s share price, at the time of reporting, is €29.54. It has followed a gradual downward trend throughout 2023. The year’s high was €40.80 on January 27, with the company’s market capitalization standing at €5.64 billion.
FDJ Group’s Q3 2023 results reveal stable performance despite some decreases in key areas. The company remains optimistic about its future, driven by strong players’ demand and its strategic focus on international expansion and diversification. FDJ’s commitment to exploring new opportunities in an evolving market reflects its resilience and adaptability in the gaming industry.