La Française des Jeux (FDJ) has announced impressive financial results for the first half of 2024, demonstrating robust growth across its operations. The French lottery and gaming giant reported a turnover of €1.43 billion, reflecting a 10.8% year-on-year increase. This growth is driven by strong performances in various segments, with notable advancements in digital activities and sports betting.
Overall Performance
FDJ’s turnover for the first half of 2024 reached €1.43 billion, marking a substantial increase of 10.8% compared to the same period last year. This growth highlights the company’s continued expansion and resilience in the competitive gaming and lottery market.
Gaming Activities in France
FDJ’s core gaming operations within France generated a turnover of €1.3 billion, which represents a 7% rise from the previous year. This segment’s performance is attributed primarily to the lottery, which alone contributed €1 billion to this total, reflecting a 5% increase. The growth in lottery turnover was fueled by the success of popular games such as Ticket d’Or and Maxi Black Jack, as well as strong interest in draw-based games like EuroDreams and Euromillions.
Sports Betting and Online Gaming
The sports betting and online gaming sector saw a notable increase of 14.5%, with turnover reaching €294 million. This growth was supported by favorable sports results, despite some lower-than-expected bets on the Euro football. Noteworthy is the significant 28.3% rise in online activity on a comparable scope basis, which was driven by the popularity of ParionsSport and poker.
Digital Activities
FDJ’s digital segment experienced an impressive surge, with turnover climbing 39.8% to €201 million. This remarkable increase is largely attributed to the acquisitions of PLI and ZEturf. As a result, the share of digital activities in FDJ’s total turnover rose to 15%. The digital growth underscores the company’s successful expansion into online platforms and services.
Point-of-Sale and Other Revenue
Revenue from point-of-sale operations grew by 8%, with a 3% increase within France. Additionally, turnover from international operations and payment services saw a significant rise of 72%, reaching €129 million, thanks primarily to the integration of PLI.
Financial Metrics
FDJ’s EBITDA for the first half of 2024 stood at €370 million, marking a 23.5% increase and resulting in an EBITDA margin of 25.9%. Adjusted net income also showed strong performance, reaching €235 million, a 28% increase year-on-year. These metrics reflect the company’s efficient cost management and profitable growth.
Outlook and Future Objectives
FDJ has reaffirmed its 2024 objectives, aiming for an 8% increase in total turnover and a 5% rise in gaming activities within France. The company’s strategic focus includes bolstering its international presence and enhancing its online gaming capabilities. A key aspect of this strategy is the ongoing public takeover offer for Kindred, which is pending final regulatory approval from the French Competition Authority. This acquisition is anticipated to further strengthen FDJ’s international and online gaming segments.
Quarterly Performance Review
In the first quarter of 2024, FDJ reported a 7% increase in total revenue to €710 million. This growth was driven by significant advancements in gaming and other business activities, setting a positive tone for the remainder of the year.
FDJ’s first-half results for 2024 highlight the company’s robust growth and strategic expansion across various segments. With substantial increases in turnover from lottery, sports betting, and digital activities, FDJ is well-positioned to achieve its annual objectives and further solidify its market presence. The anticipated acquisition of Kindred is expected to enhance FDJ’s capabilities, driving future growth and reinforcing its position in the global gaming industry.