FDJ generates 15.8 billion euros through online sales.
The French national lottery company, La Française des Jeux (FDJ), has revealed a huge increase in revenue for 2018 with a total of 15.8 billion euros. This significant growth can be attributed to a booming online sales sector, especially in the world of sports betting. FDJ's sports betting arm, Parions Sport, is one of the largest providers in the industry.
FDJ, the ninth largest national lottery operator globally, has witnessed a 4.4% surge in revenue compared to the previous year. Their core lottery business saw a modest growth rate of 1.1%, reaching 12.8 billion euros. However, the sports betting segment experienced a remarkable growth rate of 21%, earning 3 billion euros. Meanwhile, digital bets increased by an astonishing 60.4% to hit 1.8 billion euros compared to 2017. As a result, the online share of all bets now stands at 60%, up from 46% in 2017. FDJ profited greatly from the World Cup, with the event generating 333 million euros, a 75% increase compared to the 2014 World Cup. The success of the French national team no doubt played a role in this.
FDJ also entered into strategic partnerships with top Ligue 1 clubs like Olympique Marseille, Olympique Lyon, AS Monaco, and FC Nantes, with more deals in the works for 2019. The company is additionally focusing on the Women's World Cup, which is set to take place in France, from June 7 to July 7. FDJ aims to boost its presence in sports like tennis, basketball, golf, badminton, and rugby, and is planning to add more than 1,000 new electronic betting terminals across its network of over 30,000 points of sale in France.
The growth of FDJ's online segment was notably aided by the launch of its new mobile app called Mission Patrimoine in 2018. The app allows players to access all draw and instant games. FDJ's in-house website, FDJ.fr, was also redesigned to optimize the app. Revenues from digital games rose by 45.5% to 2.4 billion euros. The online channel accounts for more than 15% of FDJ's total sales. The CEO of FDJ, Stéphane Pallez, attributes this growth to a 3.2% increase in digital instant game stakes to 7.7 billion euros, while draw games saw a 1.9% decline to 5.1 billion euros. To reach its goal of 20% of total sales from digital channels by 2020, FDJ has invested a colossal 500 million euros in digitization efforts since 2015. Of this, 1 million was spent in 2018 alone. Pallez believes this investment was well worth it, stating:
"Our continued growth in stakes is proof of the successful implementation of our FDJ 2020 strategy in the areas of innovation and digitalization, making our games and distribution channels more appealing. The year 2018 was characterized by numerous successes, highlighted by the introduction of Mission Patrimoine."
A total of 10.7 billion euros in winnings were distributed to customers in 2018, a significant increase on 2017. The French government also greatly benefited from FDJ's sales, collecting 3.3 billion euros in taxes. FDJ sets aside a portion of its lottery income for the common good, making Mission Patrimoine a part of a project to protect France's cultural heritage. In 2018 alone, a specific limited edition game raised around 172 million euros for this cause, and online lottery sales saw a 12% increase. The app also attracted 1.9 million new online customers. On average, 29 million French residents participate in the lottery.
The French government currently holds a 72% stake in the lottery operator, and in an effort to generate more revenue, the nation's Finance Minister Bruno Le Maire proposed an amendment to the law on FDJ's privatization to the President Emmanuel Macron back in June 2018. The amendment aims to pass the majority stake to a national, listed gaming company.
The amendment is yet to be finalized. French media speculate that the government might be considering selling more than half of the company. Additional information regarding the potential plan is currently scarce.
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Source: www.onlinecasinosdeutschland.com
