Strong Financial Performance for La Française des Jeux
La Française des Jeux (FDJ) has announced impressive revenue growth for the period ending September 2024. The company, well-known for its lottery and gaming operations, reported a revenue increase of 11.9%, attributing this success to its diverse distribution channels and innovative digital platforms.
Key Factors Driving Revenue Growth
Stéphane Pallez, Chairwoman and CEO of FDJ, stated, "FDJ continues to deliver solid financial and non-financial performances, confirming our growth trajectory for the year. The synergistic effects from the sports betting and online gaming sectors have propelled us forward, creating a robust financial outlook. Additionally, the recent acquisition of Kindred marks a significant milestone in our strategy, establishing a truly European gaming champion that benefits all stakeholders involved."
Successful Acquisition of Kindred
FDJ's acquisition of Kindred was a highlight of the reporting period, with 195,659,291 Kindred Group plc Swedish Depositary Receipts (SDRs) tendered, representing 90.66% of the total share capital. Following the completion of share settlement on October 11, FDJ now holds a substantial 91.77% of Kindred's capital. This strategic move allows FDJ to diversify its portfolio while enhancing its position in the European gaming market.
Financial Breakdown
As of the end of September 2024, FDJ's gross gaming revenue (GGR) reached €5.393 billion, marking an increase of 12.2%. After considering public levies amounting to €3.403 billion, the adjusted GGR rose by 12.3%, resulting in €1.990 billion. The total revenue for FDJ, including other income sources, amounted to €2.097 billion, showcasing an upward trend not just in total revenue but specifically in like-for-like revenue growth of 5.8%.
Adequate Cash Position
FDJ's financial standing remains robust, with available cash at €908 million and a net cash surplus of €636 million as of September's end. These figures provide a solid foundation for financing the Kindred acquisition, which cost nearly €2.5 billion. FDJ plans to refinance this loan through favorable bond issues, aiming for an investment-grade rating.
Looking Ahead: Adjusted Revenue Expectations
The FDJ Group is optimistic about its revenue potential, adjusting its targets upwards based on recent performances. The organization projects revenue growth approaching 9% while aiming for more than 5% in gaming activities within France. With the addition of Kindred's operations from October 11, FDJ forecasts a remarkable 16% revenue growth for 2024.
Upcoming Financial Milestones
FDJ is poised to unveil its complete 2024 results on March 6, 2025, prior to trading. The company is committed to transparent communications regarding its financial health and ongoing strategies in the gaming sector.
About La Française des Jeux
FDJ Group stands as one of Europe’s premier betting and gaming operators. Boasting nearly 6,000 employees, FDJ operates in around fifteen regulated markets, providing a vast array of lottery and gaming options. With a strong emphasis on responsible gaming, FDJ promotes recreational play while leading innovations at the forefront of the industry.
Frequently Asked Questions
What is the recent revenue growth percentage for FDJ?
FDJ reported a revenue growth of 11.9% for the period ending September 2024, reflecting solid performance across various sectors.
When was the acquisition of Kindred completed?
The acquisition of Kindred was finalized on October 11, 2024, enhancing FDJ's market position in Europe.
How much cash does FDJ have available?
As of the end of September 2024, FDJ has available cash of €908 million and a net cash surplus of €636 million.
What are FDJ's revised revenue growth expectations for 2024?
FDJ anticipates revenue growth of approximately 9% for 2024, with expectations exceeding 5% in gaming activities within France.
When will FDJ announce its complete 2024 results?
FDJ plans to announce its complete 2024 results on March 6, 2025, before the trading session begins.
