FDJ revenue up by 11% in H1 following strategic acquisitions, digital segment growth

French national lottery operator Française des Jeux (FDJ) has announced an increase in revenue for the first half of the year, driven by recent acquisitions and digital growth. The company reported a revenue of €1.4 billion ($1.51 billion) for the period, an 11% rise compared to the previous year.

The acquisitions of Premier Lotteries Ireland (PLI) and horse racing betting operator Zeturr played a crucial role in this growth. The acquisitions bolstered FDJ’s digital revenue, which saw a 40% increase to €201 million ($217 million). This vertical now constitutes 15% of FDJ’s total revenue.

Sports betting and online poker were also up, rising by 14.5% to €294 million ($318.2 million), with the former supported by favorable sports results. Meanwhile, group EBITDA saw a 23% increase, reaching €370 million ($317.6 million).

FDJ's lottery division recorded a 5% rise in revenue to €958 million ($1 billion) and remains by far the primary source of revenue for FDJ. Growth was driven by new instant win games and popular draws such as EuroDreams and EuroJackpot. Additionally, the Amigo retail network returned to full technical capacity in early June, contributing to the lottery's performance.

The new international and payment services unit also made its contribution to the total, with €129 million ($139.37 million) in revenue, partly due to the launch of the Nirio payment solution for motorway toll payments.

Stéphane Pallez, FDJ's Chairwoman and CEO, expressed optimism about the company's future, particularly with the pending acquisition of Swedish iGaming operator Kindred, expected to be approved in November. 

Pallez stated: "We hope to finalize the acquisition project of Kindred in the near future, thereby marking a major new step in the group’s development, both internationally and in our online sports betting and gaming activity, to the benefit of all our stakeholders."

“The second quarter confirmed the positive trend seen since the beginning of the year thanks to our network of points of sale and to a very strong momentum from digital games, which now account for 15% of group revenue. This solid performance confirms our annual targets."

FDJ’s cost of sales for the lottery segment increased by 1.8% to €536 million ($579 million), while the cost of sales for sports betting and online gaming rose by 1.5% to €125 million ($135 million). Central costs remained stable at €128 million ($138.29 million).

Recurring operating profit for the first half of the year was €285 million ($307.91 million), a 19.9% increase from the previous year. Non-recurring operating income and expenses amounted to €21 million ($22.69 million), mainly due to acquisition costs and the revaluation of Sporting Group’s B2B assets, which are in the process of being sold. This brought the operating profit to €265 million ($286.31 million), a 17.4% rise year-on-year.

FDJ reported €23 million ($24.85 million) in net financial income, reflecting the high level of interest rates, while tax payments totaled €78 million ($84.27 million). Consequently, the consolidated net profit reached €213 million ($230 million), marking a 17.5% increase from the previous year. Adjusted net profit was €235 million ($253.89 million), a 28.3% rise from the comparable figure last year.