FDJ Report First-Half 2022 Results: Good Growth in Revenue and Ebitda
- First-half revenue up 12%
- Good growth in lottery revenue (+17%), with all points of sale open in 2022 while 10% of them were closed in the first half of 2021
- Evolution of sports betting turnover (-5%), linked to a high 2021 comparison basis (UEFA Euro 2020), pending the FIFA World Cup at the end of the year
- Good momentum in points of sale (+10%) and online postings (+9%), which represent 12% of total stakes
- Rebound in online lottery bets in the 2nd quarter, by +31% compared to the 2nd quarter of 2021, i.e. +14% over the half-year, driven by the growth in the number of players
- Reinforcement of CSR commitments, in particular, actions to prevent excessive gambling and underage gambling
- EBITDA of €308 million (+18 %), i.e. a margin of 25.4% compared to 24.1% in the 1 st half of 2021
- Acceleration of the development of the Payment and Services activity with the acquisitions of Aleda and L’Addition
Boulogne, July 28, 2022 (5:45 p.m.) – La Française des Jeux (FDJ), the leading gambling and gambling operator in France, announces its results for the first half of 2022.
Stéphane Pallez, Chairman and CEO of the FDJ group, declared: “The second quarter confirmed the good trend of the start of the year, in particular for the lottery. Our business progressed over the half-year, in points of sale and digitally. Given the deterioration of the global economic environment, the Group remains cautious but confident in its prospects built on its extensive and responsible gaming model. We continue to invest to support the development of our activities, including that of Payment and Services thanks to two acquisitions, Aleda and L’Addition. The Group is thus pursuing its strategy of sustainable and profitable growth for the benefit of all its stakeholders.”
- By Activity
The Group’s organization is structured around three operating segments: two “Business Units” (BU), Lottery and Sports Betting, and diversification activities which include three activities under development (International, Payment and Services, and Entertainment ), with cross-functional support functions (particularly customer, distribution and information systems), and the holding company, which mainly includes central costs.
The contribution margin is one of the main performance indicators for these segments. It is calculated as the difference between the revenue of the segments and the costs of sales (including retailer remuneration), and the marketing and communication costs (excluding depreciation) attributed to them.
- Lottery contribution margin of 36.6%
The revenue of the Lottery BU in the 1 st half of 2022 amounted to 946 million euros. Its increase of +17% is in line with that of bets of 1,138 million euros. In the first half of 2021, the measures taken by the French authorities to stem the Covid -19 epidemic had affected point-of-sale activity, particularly bars.
- The increase in stakes for draw games, +19% to €3,088 million, was driven by Amigo, whose stakes returned to their 2019 level, and Loto and Euromillions, which benefited from several long cycles and different events, such as the Super Lotto on Friday the 13th or the rain of Euromillions millionaires in January.
- Bets on instant games are up, +15% at 4,927 million euros, thanks in particular to the rebound in footfall at points of sale and the animation of the games portfolio with launches and relaunches, including Cash, one of the most iconic games in the illiko range.
- The increase in points of sale, nearly +17%, mainly reflects the network’s return to normal but also the good intrinsic momentum of the games.
- The rebound in online lottery bets in the 2nd quarter, of +31% compared to the
2nd quarter of 2021, i.e. +14% over the half-year, is entirely driven by the growth in the number of players. Over twelve rolling months at the end of June 2022, more than 4.5 million players played one of the games offered online by FDJ.
Cost of sales amounted to 514 million euros, up +17% (+73 million euros) compared to the 1 st half of 2021. They correspond mainly to the remuneration of retailers for 387 million euros , whose +16% increase is in line with that of network stakes over the period.
Marketing and communication costs increased by +25% to 86 million euros.
The contribution margin of the Lottery BU for the 1 st half of 2022 amounted to 346 million euros, up +48 million euros compared to the 1 st half of 2021, i.e. a contribution margin rate of 36.6%.
- 29.5% sports betting contribution margin
In the 1st half of 2022, the rate of return to players from sports betting stood at 76.0%, compared to 77.5% in the 1st half of 2021 which had seen the main competitions won by the favourites. This fall in the RRP explains the difference in variation between turnover (-5% to 232 million euros) and stakes (-11%). The change in stakes mainly reflects a high basis of comparison with FIFA’s UEFA Euro 2020 football tournament, which started on June 11, 2021, as well as a smaller schedule and less attractive competitions in the first half of 2022.
Cost of sales amounted to 110 million euros, down -13% (-16 million euros) compared to the 1 st half of 2021. They correspond mainly to the remuneration of retailers, the change which is in line with that of the network updates.
The decrease in marketing and communication costs, -6% to 54 million euros compared to the 1 st half of 2021, is mainly attributable to a high base of marketing and communication expenses in connection with UEFA Euro 2020 in the 1 st semester of 2021.
The contribution margin of the Sports Betting BU amounted to €69 million on June 30, 2022, an increase of €8 million compared to the 1 st half of 2021, i.e. a contribution margin rate of 29.5%.
- Diversification activities
Diversification activities recorded revenue of €34 million, up €4 million compared to the 1 st half of 2021. This increase is linked on the one hand to the growth in B2B revenue International and on the other hand to the growth of point-of-sale payment activity for the DGFiP. The contribution margin of diversification activities amounted to -€10 million at the end of June 2022, and reflects the investment effort made in the development of these activities.