French operator La Française des Jeux (FDJ) has unveiled its Q4 and full-year 2023 earnings, showcasing strong growth in both lottery and online gaming sectors. The company’s impressive performance is further highlighted by its recent proposal to acquire Kindred Group for €2.6bn.
Q4 2023 Performance:
In Q4 2023, FDJ recorded a noteworthy €747m in revenue, marking a substantial 13.8% increase from the previous year. This surge can be attributed to a surge in sports betting and online gaming, coupled with a significant boost in lottery revenue. Lottery revenue alone totaled €531m, a substantial 7.8% rise, while sports betting and online gaming contributed €158m, reflecting a robust 14.9% growth.
Strategic Move: FDJ’s Offer to Acquire Kindred Group:
The promising results coincide with FDJ’s strategic move to propose the acquisition of Kindred Group for €2.6bn. This offer, representing a 24% premium on Kindred stock, has positioned FDJ as a major player in the ever-evolving gaming industry. Kindred Group has until mid-November 2024 to respond to this proposition.
Kindred Group’s Q4 2023 Results:
Simultaneously, Kindred Group reported its Q4 2023 results, with a total revenue of £312.9m ($397.7m). A standout metric in the report was the underlying EBITDA, which witnessed a remarkable 45.3% increase from Q4 2022. The full-year EBITDA also soared by 58.3%, totaling £204.5m. The Board’s commitment to safeguarding employees and management in the event of the acquisition further adds depth to the report.
FDJ’s Overall Performance in 2023:
For the entire year of 2023, FDJ’s revenue reached €2.62bn, showcasing a robust 6.5% YoY growth. A significant contributor to this success was the remarkable 18.8% growth in the company’s online business ventures, accounting for 13% of the annual revenue. The recurring EBITDA for the year totaled €675m, reflecting an impressive EBITDA margin of 25.1%.
Future Outlook and Reporting:
As FDJ gears up for further growth, the full report and detailed breakdown of the company’s 2023 earnings are slated for publication following the auditing process on Thursday, 15 February. This comprehensive review will provide stakeholders with a deeper understanding of FDJ’s financial landscape and strategic positioning.
FDJ’s robust performance in Q4 2023, coupled with its bold move to acquire Kindred Group, underscores its commitment to staying at the forefront of the gaming industry. The company’s ability to navigate the evolving landscape and capitalize on emerging trends positions FDJ as a key player to watch in the coming years. Investors, enthusiasts, and industry analysts eagerly await the detailed breakdown of the 2023 earnings, anticipating insights that will shed light on the driving forces behind FDJ’s impressive financial achievements.