FDJ posts $2 billion revenue for first nine months of 2023, driven by sports betting and iGaming growth

France’s national lottery games operator La Française des Jeux recorded revenue of €1.87 billion ($1.98 billion) for the nine months ended September 30, 2023.

At the end of September, gross gaming revenue (GGR) stood at €4.8 billion ($5.08 billion), stable compared with 2022. After €3 billion ($3.21 billion) in public levies, net gaming revenue (NGR) totaled €1.77 billion ($1.87 billion), up 0.8% based on a 2.0% increase in stakes.

Including income from other activities of €103 million ($108.94 million), up more than 10% on a like-for-like basis, group revenue for the first nine months of the year grew 3.9%.

On a like-for-like basis, sales rose by 1.3%. It rose 4.6%, in line with the first half, excluding Euromillions, which was particularly affected by the low number of high jackpot draws, especially in the third quarter; and excluding Amigo, which was relaunched at the beginning of June with a revised formula in accordance with regulatory changes.

In Q3, revenue totaled €586 million ($620 million), down 1% and 3% on a like-for-like basis. Stakes in points of sale increased 0.8% to €1.32 billion ($1.4 billion), supported by sports betting and instant games, and despite Amigo and Euromillions impact.

Digital stakes continue to grow, driven by all businesses. They were up 10.6% to €2 billion ($2.1 billion), a performance attributable in large part to the increase in the number of players. Excluding Euromillions, online lottery stakes rose by more than 12%. Online stakes account for more than 13% of total stakes.

Lottery revenue totaled €1.4 billion ($1.48 billion) down 1.2%, based on a slight increase in stakes, but up 3% excluding Amigo and Euromillions.

Revenue from sports betting and online gaming open to competition totaled €360 million ($380.9 million), an increase of 9.3% in line with growth in stakes.

The company said the acquisitions of ZEturf group and Premier Lotteries Ireland (PLI) will strengthen FDJ’s model from the fourth quarter onwards.

ZEturf is the second largest online horse betting operator in France, with a market share of around 20%. This acquisition enables the FDJ Group to become the fourth largest competitive online gaming operator in France (sports betting, horse betting, and poker), with a market share of over 10%. Finalized at the end of September, this acquisition has been consolidated in FDJ’s accounts since 1 October.

The company expects to complete the acquisition of PLI, authorized by the Irish lottery regulator at the beginning of October, in early November. In 2022, PLI recorded GGR of €399 million ($422 million) and revenue of €140 million ($148 million), with an EBITDA margin comparable to that of FDJ.

The company targets to achieve revenue growth of around 5% or between 1.5% and 2% on a like-for-like basis, in 2023 with the current EBITDA margin maintained at around 24% thanks to tight cost control.

The Group will also benefit from a high level of financial income, expected to almost double the figure recorded at the end of June, and reiterated its commitment to distribute between 80% and 90% of its consolidated net income.

Our growth remains solid, with strong players’ demand, even though it has been affected by the low number of Euromillions high jackpot draws,” Stéphane Pallez, Chairwoman and CEO of FDJ Group, said.

“At the same time, the completion of the acquisition of ZEturf at the end of September and the forthcoming closing of Premier Lotteries Ireland acquisition in November illustrates our strategy of internationalization and diversification. We are delighted that the teams of these two operators are joining FDJ and that these operations will contribute to the Group’s sustainable and profitable growth.”