In a financial update on the impact of COVID-19 on its performance, La Française des Jeux (FDJ), France’s leading gaming operator, has unveiled a 60% drop in stakes as result of the lockdown.
In addition to the drop in stakes, the French operator also revealed that throughout the lockdown period it has experienced a reduction of €200m in revenue as well as having its EBITDA impacted by €100m.
Despite the decline in revenue, the FDJ has reiterated it remains financially strong with over €800m in short-term cash available at the end of May. This comes as a result of FDJ implementing mitigating measures as from the start of the health crisis which looked to minimise the impact on the organisation and helped it save more than 10% of its annual fixed costs.
As it stands, FDJ has also confirmed that there will be a gradual resumption of activity post lockdown, notably with early all FDJ points of sale open to date.
The operator cited the resumption of sporting competitions, including most of the national football championships in Europe by the end of June. Matches are to restart in France and international championships in August; NBA competitions will begin again late July. ItsAmigo game has also been operating since June 8 across its entire network.
Having generated revenues of €1.96bn for 2019, a rise of 9% year-on-year, FDJ eventually saw its growth halted by the pandemic, as stakes drop by 5% in comparison to the previous year, and total revenue fell by 1%.
A statement released by the group concluded: “Given the changing nature of the situation, the estimates and forward-looking statement presented by FDJ cannot constitute either a forecast or a target. The Group is to report its half yearly results on 29 July after the close of trading and will issue its new 2020 outlook as soon as possible.”