Operator News

France – FDJ pitches impact of COVID-19’s first month at over €192m

French betting operator La Française des Jeux believes the Covid-19 coronavirus epidemic will slash at least half of its revenues with turnover for sports betting being hit by €120m in the first month. The first month would also see revenues for lottery games down by €72m.

So far, nearly 80 per cent of FDJ outlets are ‘allowed to stay open at this point, as part of clearances given to tobacconists and newsagents. The Group works alongside its retailers to help them enforce health precautions.’ For the lottery, which accounted for around 80 per cent of the company’s activity in 2019, the Amigo game was suspended with the impact over a month estimated at around €17m on turnover and around €10m on EBITDA. Attendance at open outlets should decrease given the containment measures taken by the government. In this context, and by way of illustration, FDJ estimates that a drop in bets of around 50 per cent would result in a monthly impact on turnover close to €55m, and on EBITDA of around €17m. FDJ said it continues to perform well on its online lottery games.

For sports betting, which accounted for around 20 per cent of the company’s activity in 2019, the cancellation of numerous sporting events, including UEFA Euro 2020, most championship matches, in particular football and basketball, and all future tennis tournaments, including Roland Garros, should result in a very large drop in bets in the first half. However, the postponement of certain competitions remains possible in the second half of 2020 as for the football championships and Roland Garros, or even in 2021 as for the UEFA Euro 2020.

“On these bases, for sports betting, FDJ anticipates a loss of turnover of around €120m in fiscal year 2020, and of EBITDA of around €50m, excluding any postponement of canceled competitions and new savings,” the company said.

FDJ has also already taken “a number of measures to limit the effects of the crisis on its profitability. In addition, the group is working on further reductions in its cost base, and to allow business to resume in the best conditions as soon as circumstances allow. Finally, the financial situation of FDJ is extremely solid and ensures the liquidity of the Group, which has sufficient short-term available cash to face the situation. ”

Stéphane Pallez, President and CEO of the FDJ group, said: “Today we are facing an unprecedented and exceptional situation which requires everyone’s mobilization and will weigh on our activity for an indefinite period. In this context, the FDJ group is organised very quickly to respond responsibly to this unprecedented health crisis and limit the consequences on its employees, customers, retailers and shareholders, thanks to its solidity, its responsiveness and the commitment of everyone.”