FDJ, a French gaming operator, adjusts its 2023 projections due to a slowdown in growth.
France's gaming, lottery, and sports betting company Française des Jeux (FDJ) has had a mixed year. With the recent acquisition of ZEturf's horse racing betting activity, FDJ has now become the fourth operator in France's competitive sports betting and online gaming market, holding around 10% of the market share. Although this acquisition might be beneficial in the last quarter of the year, it couldn't impact the third-quarter results.
Despite increased revenue overall, the third quarter saw a negative impact, causing FDJ to lower its full-year guidance. The main reason for this was the lack of large jackpots in the Euromillions lottery and low popularity of its new Amigo game. Introduced in June, the lottery-type draw Amigo has not yet gained much popularity.
From July to September, FDJ experienced a drop in revenue, amounting to €586 million (US$625.79 million) - a 1% decrease year-on-year. However, the first three quarters showed a 4% increase in revenue. The lottery segment suffered the most, with a 6% decline during this period, making up roughly 77% of FDJ's total revenue. The company also saw a 2% decrease in stakes, reporting €4 billion (US$4.27 billion) for the third quarter.
In light of these changes, FDJ has revised its growth projection for the year. It now expects a year-on-year increase of no more than 5%. This is a significant difference from their earlier prediction, which was a 5% or higher improvement over last year.
Despite the revision, FDJ remains confident in hitting its 2023 target of around 24% operating margin (EBITDA). They attribute this achievement primarily to their efficient cost management.
The fourth quarter is expected to be more promising for FDJ. The introduction of EuroDreams, a new lottery option across several European countries, is sure to provide a nice boost. This new lottery opportunity promises to be a massive draw for European lottery players, offering a chance to win €20,000 (US$21,358) per month for 30 years for only €2.50 (US$2.67). By combining nine other lotteries in Europe, EuroDreams is the first annuity game on a European scale. The first draw will take place on November 6, and tickets will be available starting October 30.
Additionally, FDJ is on the brink of taking over the Irish Lottery, another player in the EuroDreams project. After winning a bidding fight against Allwyn, IGT, and Australia's Lottery Corp. this summer, the acquisition of the current operator, Premier Lotteries Ireland, is almost complete.
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Source: www.casino.org
