Groupe FDJ has raised its full-year revenue and earnings forecasts, as the operator of the French National Lottery enjoyed a fruitful Q3 spearheaded by strong draw-based games growth.
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French state-owned National Lottery operator Française des Jeux (FDJ) has reported progress across all three core aspects of its business in Q1 2023.

The group reported total quarterly revenue of €662m, a 5% increase on the previous year’s income of €628.9m on a pro-forma asis, including consideration of the acquisition of retail solutions firm L’Addition and Aleda, its (POS) payments provider.

A vertical breakdown saw lottery revenue rise 6.4% to €497m (€465m), attributed to growth in draw games and instant lottery stakes, and strong jackpots were cited as a key driver of the performance of Loto and Euromillions products.

Group wide growth was attributed by FDJ to an uptick in stakes by 8.6% to €5.5bn (€5bn), with online stakes up 21.3% to ‘nearly’ €700m (€550.9m), particularly for lottery and sports betting, accounting for 13% of total takes and attributed to an increase in player numbers.

At the retail level, having moved to strengthen its offering in this area via the aforementioned integrations Aleda and L’Addition, FDJ reported growth in point-of-sale stakes by 6.9% to €4.7bn (€4.5n).

Lastly, online sports betting and gaming delivered revenue of €129m, with this figure remaining consistent for the former vertical, which achieved this sum in Q1 2022.

Following a positive start of 2023 trading, FDJ has updated its targets for the remainder of the year, projecting revenue growth of between 4% and 5% to €2.5bn, accompanied by a continued increase in online stakes by 20% and an EBITDA margin of ‘around 24%’.

Stéphane Pallez, FDJ Group CEO and Chairwoman, said: “The first quarter of 2023 was marked by the continued good financial and extra-financial performance of the FDJ Group. 

“Our revenue is up more than 5%, driven by both our network of 30,000 points of sale and a good dynamic in our digital business.”

An additional highlight for the firm during the first quarter was a ruling by the French Council of State on 14 April reaffirming its monopoly held over lotteries and betting in France, which the legal body decided was in compliance with EU law, concluding a court case which began in December 2019.

The company also highlighted its sustainability initiatives, referring to its rating of 72/100 by Moody ESG Solutions, ranking 22nd out of the ESG assessor‘s list of 5,000 global companies.

On the other hand, the group did come across a major hurdle this quarter for its marketing activities, as the L’Autorité Nationale des Jeux (ANJ) rejected its 2023 advertising plans, pointing particularly to promotion of its lottery products.

Pallez concluded: “We are also very proud to have maintained an excellent sustainability rating by Moody’s ESG Solutions, which places us, for the fifth year in a row, as number one in our industry. 

“Finally, the decision of the French Council of State validates the privatisation procedure and strengthens FDJ’s monopoly, in compliance with European law.”