Operator News
France – FDJ sees first quarter revenue up 14 per cent
By Phil - 25 April 2022
La Française des Jeux (FDJ) saw its turnover for the first quarter of 2022 increase by 14 per cent, to €613m, with betting levels up by 10.2 per cent to €5,061m.
The operator revealed that in Q1 2021, the measures taken by the French authorities to stem the Covid-19 epidemic had affected its point-of-sale activity, with nearly 10 per cent of its network closed, mainly bars. Conversely, the digital business had recorded exceptional growth.
At the start of the year, activity progressed on all channels, despite the virtual absence of a long draw cycle (high jackpot), unlike the first quarter of 2021. Points of sale increased “by 11.5 per cent, to €4.5bn, thanks to the Group’s marketing and sales initiatives and the return to normal of the environment. Digital stakes stand at a high level of €575m. This performance was up by one per cent compared to an extremely high comparison base in the first quarter of 2021, showing the solidity of the Group’s online activity. Digital bets represented more than 11 per cent of total bets.”
Turnover increased for all FDJ activities. Lottery stood at €467m, up 14 per cent, driven by the growth in stakes (up15.3 per cent). The draw stakes amount to €1.5bn. Their increase of 9.5 per cent is explained by the growth of Amigo, whose stakes now exceed their pre-crisis level. The performance of Loto and Euromillions is affected by the virtual absence of long cycles. Instant games stakes reached €2.5bn, up 19 per cent with the success of the quarter’s launches and relaunches (Baraka in January, then Cash and finally “3 in 1” in March). Revenue from sports betting amounted to €129m, up 13.4 per cent. The persistence of a low return rate to players since the end of 2021, 74.7 per cent in the first quarter of 2022, down 4.2 points compared to the first quarter of 2021, contributes to the decline in stakes of 5.2 per cent. This is mainly due to unexpected sports results, especially in football.
This first quarter ‘confirms the Group in achieving its 2022 objectives both in terms of business growth and margin rate.’
“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,” said Stéphane Pallez, Chairman and Chief Executive Officer of the FDJ group. “We are also very proud of the A1+ sustainability rating awarded by Moody’s ESG. This good financial performance confirms our sustainable and profitable growth strategy and our outlook for 2022.”
