Increased engagement with instant games both online and in physical retail stores spearheaded Groupe FDJ’s ‘strong growth’ in the first quarter of FY2022 as total group revenues reached €613m.
Publishing its Q1 financial update, the French lottery operator noted that both retail and online channels saw growth as French consumers returned to physical shops following the removal of COVID-19 restrictions.
Wagers placed via retail channels reached €4.83bn in the first quarter, up 11.5% year-on-year and making up the vast majority of the €5.10bn that was wagered in total for the three-month period ending March 31.
Lottery revenue made up €467m of the total €613m, up 14%, mainly driven by greater customer engagement, with stakes increasing 15.3% YoY. Despite Loto and Euromillions having weak market conditions with regards to a lack of high jackpots, lottery draw stakes were primarily gained from a 9.5% increase in the Amigo draw game.
Meanwhile, instant games headlined FDJ’s performance in the quarter, with stakes increasing by 19% up to €2.52bn, helping the French operator’s lottery division grow at both digital and retail levels.
Digital stakes reached an all-time quarterly high of €575m, 1% higher than the same period last year, mirroring the shift in consumer habits through the pandemic period seen globally.
However, thanks to ‘marketing and sales initiatives’ throughout the period, FDJ is proving that retail is still vital to lottery and sports betting sales, with the 11.5% increase YoY.
On sports betting, FDJ generated turnover of €129m, up 13.4% YoY. This is despite a reduction in the retention rate of players since the end of last year and stakes dropping by 2%. FDJ noted that this is due to unfavourable sporting results for consumers, particularly in football.
Working towards strategic aims, FDJ also secured A1+ grading for sustainability by Moody’s ESG Solutions, reinforcing the group’s commitment to environmentally friendly operations.
Stéphane Pallez, Chairman and CEO of FDJ, commented: “The start of the year was marked by strong growth in all of our activities, across all sales channels. The strong growth in turnover from lottery and sports betting is thus driven both by our network of 30,000 points of sale and by solid online activity.
“We are also very proud of the A1+ sustainability rating awarded by Moody’s ESG Solutions to FDJ for the fourth consecutive year. This good financial and extra-financial performance confirms our strategy of sustainable and profitable growth, and our outlook for 2022.”