Groupe FDJ recently released its H1 2023 financial results, which demonstrated a 6% increase in revenue, totaling €1.28 billion ($1.40 billion). This growth trend has been ongoing, albeit at a slower pace since 2020. Alongside the financial report, FDJ also made a significant acquisition, further diversifying its business portfolio.
Revenue Trends:
Groupe FDJ’s revenue has shown a consistent increase, albeit at a slowing rate. From H1 2020 to H1 2021, there was a substantial 12% surge, followed by a 6% rise from H1 2021 to H1 2022. The latest figures indicate a 6% increase from H1 2022 to H1 2023, marking a clear pattern of halving annual H1 revenue gains since 2020.
EBITDA Performance:
Despite the revenue increase, FDJ reported a 3% decrease in EBITDA, with H1 2023 at €300 million compared to €308 million in H1 2022. This drop is somewhat surprising but is attributed to adjustments for depreciation and amortization expenses. It’s worth noting that from 2020 to 2022, FDJ experienced impressive year-on-year EBITDA growth, with a 26% increase from 2020 to 2021 and an 18% rise from 2021 to 2022.
Net Profit Fluctuations:
FDJ’s net profit exhibited notable fluctuations over the past four H1 reports. The period from 2020 to 2021 saw a remarkable 190% surge, while 2021 to 2022 witnessed a more modest 9% increase. However, H1 2023 showed a 14% growth, with net profit totaling €181 million compared to €160 million in H1 2022.
Share Price Performance:
Following the release of the H1 2023 report, FDJ’s share price experienced a significant decline, dropping from €35.46 to €33.60. This represents the most substantial fall in the past month, bringing the price to its lowest point since the beginning of the year. Notably, FDJ’s share price reached its peak for the year on April 18 at €40.22, just before the release of its Q1 report.
Recurring Operating Profit:
Similar to EBITDA, FDJ’s recurring operating profit displayed fluctuating figures. In H1 2023, it amounted to €240 million, marking a 2% decrease from the previous year. In contrast, the period from H1 2020 to H1 2021 witnessed a remarkable 60% rise, while the growth rate was reduced by more than half, down to 24%, from H1 2021 to H1 2022.
Acquisition of Premier Lotteries Ireland:
In addition to the financial results, FDJ made headlines by acquiring Premier Lotteries Ireland for €350 million. This acquisition provides FDJ with exclusive rights to operate the Irish National Lottery until 2034, marking a strategic move to expand its lottery operations beyond France. While this news wasn’t enough to prevent the decline in FDJ’s share price, it highlights the company’s commitment to diversifying its business portfolio.
Groupe FDJ’s H1 2023 financial results reflect a continuing trend of revenue growth, albeit at a slower pace. Despite the revenue increase, EBITDA experienced a decline, attributed to adjustments for depreciation and amortization expenses. Net profit displayed fluctuating figures over the past four H1 reports, with significant variations in growth rates. FDJ’s share price saw a significant drop following the release of the report, reaching its lowest point since the beginning of the year. However, the acquisition of Premier Lotteries Ireland demonstrates FDJ’s commitment to expanding its lottery operations beyond France, adding a new dimension to its business strategy. Stéphane Pallez, Chairwoman and CEO of the FDJ Group, expressed satisfaction with the results and the acquisition, underlining the company’s dynamic and evolving nature.