La Française des Jeux (FDJ) has recently disclosed its financial results for 2023, showcasing robust growth across various sectors.
Financial Performance Overview:
FDJ reported a notable increase in revenue, reaching €2.6 billion in 2023, marking a 6.5% growth compared to the previous year’s €2.5 billion. Recurring EBITDA surged by 11.3% to €657 million, while net income soared by 38.1% to €425 million, indicating a strong financial performance.
Lottery Operations:
FDJ’s lottery ventures, including Euromillions and Amigo, contributed €1.9 billion to its revenue, accounting for approximately 73.1% of total revenue. Despite facing challenges such as a decrease in high jackpot draws for Euromillions, FDJ’s lottery segment experienced growth, especially with the relaunch of Amigo.
New Launches and Relaunches:
FDJ introduced new products like EuroDreams, Club Color, and Mission Nature, diversifying its offerings and attracting a broader customer base.
Sports Betting, Online Gaming, and ZEturf Acquisition:
The acquisition of ZEturf in late 2023 bolstered FDJ’s presence in the online horseracing market, complementing its existing sports betting and poker services. Sports betting and online gaming revenue reached €518 million, reflecting a 10.9% increase. The synergy between FDJ’s offerings is evident, with 20% of online sports betters transitioning to play online poker.
Contribution to France’s Economy:
FDJ’s significant contributions to France’s public finances, including funding for sports and heritage sites, highlight its role in supporting the nation’s economy. Moreover, the company’s payments to retailers and job creation underscore its positive impact on employment and local businesses.
Kindred Takeover:
FDJ’s proposed acquisition of Kindred Group, if approved, could enhance its international footprint by approximately 20% of its gross gaming revenue. While the impact of this acquisition will be seen in future financial reports, FDJ aims to maintain Kindred’s business integrity while focusing on regulated markets.
Stock Performance:
FDJ’s stock prices exhibited steady growth, with a notable increase from €38.70 to €39.28 on February 15th, reflecting a 1.5% growth. This upward trend aligns with the broader market sentiment, with stock prices up by 17.8% from the previous month.
La Française des Jeux’s 2023 performance reflects its resilience and strategic initiatives in navigating the dynamic gambling industry. With strong financial results, strategic acquisitions, and contributions to the French economy, FDJ is poised for continued growth and value creation in the coming years.