FDJ achieves double-digit revenue growth

Garance Limouzy October 18, 2024

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FDJ achieves double-digit revenue growth

La Fran?aise des Jeux (FDJ) has announced impressive financial results for the year ending September 2024, with a robust increase in revenue driven by both lottery and online gaming activities.

As reported by the FDJ, the total revenue for the first nine months of 2024 reached €2.097 billion, a year-on-year increase of 12 percent. When adjusted for comparable operations, the growth stands at 6 percent. The company’s gaming activities within France generated €1.907 billion, an 8 percent rise. The lottery segment alone saw revenues climb by 7 percent to €1.5 billion, buoyed by strong performances across all game categories.

Stéphane Pallez (pictured above), CEO of the FDJ group, explained: “This performance is driven by both the lottery and competitive sports betting and online games, as well as our various distribution channels, which are supported by an expanding network of retail points and strong momentum in digital gaming.”

Sports betting and online games indeed experienced an impressive 13 percent increase, bringing in €407 million. The point-of-sale revenue in France grew by 3 percent, while revenue from operations in Ireland rose by 9 percent. Digital channels continued to outperform, reporting an exceptional 39 percent growth to reach €302 million, which now constitutes 15 percent of FDJ’s total revenue.

Successful Kindred acquisition

The FDJ has successfully completed its acquisition of Kindred Group, securing a 91.77 percent stake as of 11 October. The acquisition, which cost nearly €2.5 billion, reinforces FDJ’s position in the European gambling sector, diversifying its portfolio significantly.

The integration of Kindred allows FDJ’s presence to grow across several key European markets, including the Netherlands, the UK, France, Sweden, and Belgium. The newly formed entity is projected to generate around 26 percent of its revenue internationally, with online offerings contributing approximately 27 percent to the overall revenue.

Commenting on the acquisition, Stéphane Pallez stated: “The Group has reached a significant milestone in implementing its strategy with the completion of the Kindred acquisition in early October, creating a European champion with a diversified and balanced profile that serves the interests of all its stakeholders.”

Upward adjustments for 2024 forecasts

The FDJ has revised its forecasts for 2024 upwards, anticipating revenue growth of nearly 9 percent and over 5 percent for its gaming activities in France. The company is targeting a steady EBITDA margin of around 25 percent. Following the integration of Kindred, the projected growth rate for published revenue could reach about 16 percent while maintaining an EBITDA margin of approximately 25 percent.