La Française des Jeux (FDJ) has released its revenue report for 2023, with the operator making €2.6bn ($2.8bn). This reflects growth of 6.5%, up from the €2.5bn reported last year. Recurring EBITDA was €657m, up 11.3%, with FDJ reporting net income of €425m - a jump of 38.1% from last year.
Lottery
FDJ’s lottery ventures, which include the Euromillions and Amigo, made €1.9bn in 2023, accounting for roughly 73.1% of the operator's revenue. Including the two businesses mentioned, this reflects growth of 1.1%, and without reflects growth of 4.9%.
The Euromillions reported 23 high jackpot draws (> €75m) in 2023, compared to the record high 43 from last year. The second semester was particularly low in terms of draws, with only eight draws compared to 2022’s 27 draws. Amigo, meanwhile, was relaunched with a new formula in June. Since then, the business has stabilised.
Other new launches and relaunches from FDJ include EuroDreams, Club Color and Mission Nature.
Net gaming revenue for lottery operations overall was up 10%, or 17% excluding Euromillions.
Sports betting, online gaming and ZEturf
FDJ acquired ZEturf in late 2023, allowing the operator to enter the online horseracing market alongside its existing online sports betting and poker services. Sports betting and online gaming made €518m in 2023, up 10.9% (or 8.4% excluding ZEturf). FDJ noted that 20% of online sports betters go on to play their online poker games, suggesting efficient synergy between its offerings.
With the acquisition, FDJ is now the fourth-largest French sports betting and online gaming operator, with a market share of over 10%.
The company’s growth was in part explained by the FIFA World Cup, which occurred at the end of 2022 and saw momentum carry through to 2023. FDJ expects ZEturf to continue its development under its new ownership, with the Champions League and Ligue 1 being pinned as events of note.
Benefits to France
FDJ generated €4.3bn in contributions to France’s public finances in 2023, with a majority going to public levies. This includes contribution to French sport via the National Sports Agency (ANS) and funding for French heritage sites, with €28m donated to the French National Heritage Foundation.
The operator also paid €983m to retailers and created jobs for 56,000 people in France. FDJ’s contribution to national wealth totalling €6.6bn, or 0.3% of Gross Domestic Product (GDP).
For more information on gambling in France, we spoke with ANJ Chair Isabelle Falque-Pierrotin in a recent Huddle.
Kindred takeover
One key talking point of the Huddle was FDJ’s proposed acquisition of Kindred Group. While the news broke in January and thus would not have affected 2023’s results, the potential €2.6bn acquisition would allow FDJ to grow its international presence by approximately 20% of its gross gaming revenue (GGR), making next year's annual results one’s to watch out for.
FDJ has stated that were the acquisition to be accepted, the operator would change little of Kindred’s business, save for the removal of the business from Norway ‘and those other non-regulated markets with no ongoing path to regulation.’
Share price
Stock prices rose from €38.70 at the end of trade on Valentine’s Day to €38.98 at the start of trade on 15 February. This number has continued to grow throughout the day's trading, sitting at €39.28 at 9:50am GMT, reflecting growth of 1.5%.
This price reflects growth seen across the last month, with stock prices up 17.8% from the average €33.20 reported on 15 January.
