Groupe FDJ has shared satisfaction with its lottery division after its performance in 2022 contributed to a 9% rise in overall revenue.
After reporting €2.5bn in yearly revenue, the operator of the French National Lottery noted ‘significant’ growth in sales points (+8%) and continued momentum in online sales (+16%) representing more than 12% of total sales.
Turnover was up 1% for sports betting and competitive online games but it was the lottery sector that really made waves in 2022, recording a 10.9% rise in revenue at €1.91m (on the basis of stakes up 10.1%).
According to FDJ, this ‘reflects the good intrinsic momentum of the games and the return to normal in the network of points of sale’.
This ‘good performance’ can be attributed to both draw games and instant games; the large number of high jackpots contributed to great intrigue in the draw games Loto and Euromillions, while its instant games was driven by portfolio activity, in particular the success of game launch and relaunches, including Cash, x10 and x20, and Ace of Hearts.
Cost of lottery sales amounted to €1.03m (+8.9%) and mainly corresponded to the remuneration of retailers, while marketing and communication costs amounted to €174m, up 9.7% YoY, ‘reflecting the development of the games and services offered, particularly digital’.
The lottery’s contribution margin came to €709m, a contribution margin rate on turnover of 37%, up from 35.9% in 2021.
“FDJ recorded very good results over the whole year, with progress in all its activities supported by significant growth in its 30,000 points of sale and a continuation of the digital dynamic,” said Chairman and CEO Stéphane Pallez.
“This good performance benefits all of our stakeholders, in particular our employees, our partner merchants and our shareholders. The group also continued to strengthen its societal commitments, in particular its actions to prevent excessive gambling and gambling by minors.
“This financial and extra-financial performance reinforces the group’s strategy, confident in its prospects for balanced value creation in the medium term.”
Meanwhile, EBITDA was up 13.1% to €590m (2021: €522m) and net profit increased 4.7% YoY to €308m (2021: €294m).
Furthermore, FDJ added that its ‘very good’ results were ‘in line’ with the group’s responsible growth trajectory.