2020_19_newgioco.png
2020_19_newgioco.png
2020_19_newgioco.png

Coronavirus outbreak causes FDJ revenue to decline for Q1 2020

By Iqbal Johal

French operator La Française des Jeux (FDJ) has announced a 1% year-on-year decline in revenue for Q1 2020 due to the coronavirus outbreak.

Revenue is down to €500m ($543.6m), while player stakes for the first quarter have decreased 5% from 2019, to €4.1bn.

However, since the start of the lockdown in France on 16 March, stakes have dropped 60%, with amounts wagered on lotteries declining more than 40%.

Sports betting handle has fallen nearly 95% since the suspension of all major sporting competitions worldwide.

The operator says the impact of the coronavirus has led to a €100m hit in revenue and €50m in EBITDA.

The group has implemented an action plan to save more than €80m for the rest of 2020, while its board of directors has proposed to maintain dividend payment, but reduce its amount by 30% to €0.45 per share.

Considering the operator has €800m available in excess cash, it has decided not to take advantage of state support or use furlough schemes.

FDJ Chairwoman and CEO, Stéphane Pallez, said: "Since the beginning of this unprecedented health crisis, the FDJ Group has strengthened its mobilisation to limit the effects on the company, its employees and its stakeholders in a spirit of responsibility and solidarity.

"The exceptional situation is already having very significant effects on the company’s activity."

TAGS:

Share This Post


NEWS SPONSOR
2020_19_gig.gif

More News

With ICE Asia Digital taking place 8-10 June, Gambling Insider caught up with Clarion Gaming group event director Greg Saint. Previewing the upcoming event, Saint advises attendees to think of ICE Asia...




This article was originally published in the May/June edition of Gambling Insider magazine: Gambling Insider assesses the early progress made by the Betting & Gaming Council as it bids to...