FDJ posts 6.5% yearly revenue surge, hits $2.8 billion in full-year 2023

French gaming operator La Francaise des Jeux (FDJ) has reported a 6.5% growth in revenue for the 2023 full financial year, reaching €2.62 billion ($2.85 billion). 
Revenue grew 13.8% to €747 million ($814.11 million) in the fourth quarter.

Along with the 2023 financial report, the company announced it has submitted a SEK27.96 billion ($2.67 billion) bid for the acquisition of Swedish online gambling heavyweight Kindred Group.

In Q4, lottery revenue rose 7.8 % to €531 million ($578.42 million), benefitting from the success of the Euromillions super jackpot starting at €200 million ($217.9 million) at the beginning of December and the launch of EuroDreams at the start of November.

Competitive sports betting and online gaming open to competition continued to perform well, reported the company, with revenue growing 14.9 % to €159 million ($173.2) in the last quarter. This performance was driven by a still buoyant market, combined with very favorable results for the operator.

Revenue from the group's online gaming business saw strong growth in the full year, up 18.8 %, and accounted for nearly 13% of revenue in 2023 versus 11% in 2022.

FDJ's recurring EBITDA stood at €675 million ($735.37) in 2023, leading to a recurring EBITDA margin of 25.1%.

“This level takes into account the exceptional level of sporting results in the operator's favour at the end of the year and a reversal of a provision relating to disputes with former broker-agents. Excluding these, it would have been 24.3 %,” the company said.

After accounting for payments associated with the acquisitions of ZEturf and Premier Lotteries Ireland, FDJ reported a net cash surplus of €671 million ($731 million) at the close of December. This marked a 25.4% decrease compared to the €900 million ($980.5 million) generated in the full year of 2022.

FDJ completed the €175 million ($181 million) acquisition of ZEturf in November. The company also concluded the acquisition of Premier Lotteries Ireland that same month for €350 million ($381.3 million).

The company, in a separate press statement, said it has filed a tender offer to buy Kindred Group. The offer is being made at a price of SEK 130 ($12.43) per share.

“This price represents a premium of 24% over the closing price on 19 January 2024 and 35% over the weighted average price for the last 30 trading days, and corresponds to an enterprise value of €2.6 billion,” FDJ said.

As per the company, the acquisition will create a European gaming champion with an enhanced financial profile. The transaction is expected to lead to a more than 10% accretion in dividend per share, starting from the 2025 financial year to be paid in 2026.