La Française des Jeux Reports Strong Financial Results Post-Kindred Merger
La Française des Jeux (FDJ) has recently released its official report detailing its financial performance over the first nine months of the year, showcasing robust growth following its strategic merger with Kindred Group. This merger marks a pivotal moment for FDJ, establishing it as a "European champion" in the gaming and lottery sectors.
Financial Highlights
In the first three quarters of the year, FDJ reported an impressive year-to-date revenue of EUR 2.01 billion ($2.18 billion), reflecting a 12% increase compared to the same period last year. Out of this total, EUR 1.9 billion ($2.06 billion) was generated from operations within France—a testament to the company’s strong domestic presence.
One of the standout aspects of FDJ’s financial report is the lottery segment, which continues to drive the bulk of revenue. This segment alone generated EUR 1.5 billion ($1.6 billion), marking an 8% year-on-year growth. The healthy performance across various lottery games demonstrates the appeal and engagement of FDJ’s offerings to the public. Additionally, the sports betting segment contributed a significant EUR 407 million ($441.4 million), up 13% year-over-year, reflecting the growing interest in sports wagering.
Further reinforcing FDJ’s strong market position, point-of-sale revenue saw a 3% rise in France and an impressive 9% increase when including Ireland. Digital revenues also played a crucial role, climbing to EUR 302 million ($327.5 million), highlighting the success of FDJ’s online platforms in meeting the demands of a digital-savvy audience.
Strong ESG Performance
In an age where environmental, social, and governance (ESG) criteria are increasingly significant for investors and consumers alike, FDJ has also excelled in this arena. Moody’s, a leading credit rating agency, reaffirmed a solid ESG score of 71/100 for FDJ, securing its status as a frontrunner in the Hotel, Leisure, Goods and Services sector. FDJ stands out as it ranks 31st out of 4,500 companies globally assessed by Moody’s, indicating strong company practices in sustainability and ethical governance.
Leadership’s Vision for the Future
Stéphane Pallez, the Chief Executive Officer and Chair of FDJ, expressed great satisfaction with the financial and non-financial results, noting that they set a solid foundation for a successful 2024. He acknowledged the completion of the Kindred acquisition as a major milestone that will not only diversify FDJ’s operations but also provide substantial benefits for all stakeholders involved.
Updated Outlook and Future Prospects
Following the acquisition, FDJ has adjusted its outlook for the financial year. The company anticipates a 9% increase in full-year revenue and projects an EBITDA margin of around 25% for 2024. When taking into account the EUR 2.5 billion acquisition of Kindred, FDJ expects revenue growth of approximately 16% and an EBITDA margin of about 25% for the upcoming year.
For context, FDJ secured a 91.77% stake in Kindred through this historic merger. After navigating regulatory challenges over several months, FDJ has completed the takeover and is now focused on increasing its stake to 100%. By integrating one of Europe’s top five online gaming companies, FDJ is not only enhancing its market positioning but is also poised to leverage new opportunities for innovation and growth.
Conclusion
FDJ’s strong financial results in the first nine months of the year, combined with its strategic merger with Kindred Group, underscores its commitment to becoming a leader in the European gaming market. With a diversified profile, solid ESG performance, and an optimistic outlook for the future, FDJ is well-positioned to navigate the evolving landscape of the gambling industry while delivering value to its stakeholders. With leadership firmly focused on harnessing the benefits of the Kindred acquisition, the road ahead looks promising for this dynamic company.
