A Good Start to the Year for La Française des Jeux

• Q1 2023 revenue up +5%[1] to €662 million
  • Activity still strong in points of sale (stakes up +7%)
  • Good dynamic in online stakes (+21%), accounting for almost 13% of total stakes
• Targets for 2023 confirmed
• The highest sustainability rating in the Hotel, Leisure and Services sector maintained by Moody’s ESG Solutions for the 5^th year in a row
• Confirmation of La Française des Jeux’s monopoly by the French Council of State

Boulogne-Billancourt (France), 19 April 2023 (5:45 p.m.) – La Française des Jeux (FDJ), France’s leading gaming operator, announced its Q1 2023 revenue.

Stéphane Pallez, Chairwoman and CEO of the FDJ Group said: “The first quarter of 2023 was marked by the continued good financial and extra-financial performance of the FDJ Group. Our revenue is up more than 5%, driven by both our network of 30,000 points of sale and a good dynamic in our digital business. We are also very proud to have maintained an excellent sustainability rating by Moody’s ESG Solutions, which places us, for the fifth year in a row, as number one in our industry. Finally, the decision of the French Council of State validates the privatisation procedure and strengthens FDJ’s monopoly, in compliance with European law.”

Q1 2023 revenue of €662 million, up +5% on a 2022 pro forma basis

The revenue in Q1 2023 amounts to €662 million.

On a pro forma basis in 2022, including the acquisitions of Aleda and L’Addition over the full year, its growth came out at +5.3%. Compared to Q1 2022 reported figures, the increase was +8.0% based on stakes which increased by +8.6% to €5,495 million.

The business was well-oriented across the entire offering and all distribution channels:

• Point-of-sale stakes rose +6.9% to €4.797 million, reflecting good traffic level and the attractiveness of FDJ’s offering.
• Online stakes continued their good momentum, driven by both lottery and sports betting. They were up +21.3% to nearly €700 million, a performance mainly attributable to the increase in the number of players. Thus, online stakes account for nearly 13% of total stakes.
• Lottery revenue totalled €497 million, a +6.4% increase due to growth in draw games and instant games stakes.
  • The performance of Loto and Euromillions was mainly attributable to the increase in stakes related to high jackpots;
  • That of instant games reflects the success of the animation of the games portfolio, with the launch of the Carré Or a one-off game in January, despite a high comparison base that benefited from the relaunch of the bestseller Cash in February 2022.
• Sports betting pursue its good momentum recorded since the summer 2022, amplified by the football World Cup, with strong growth in stakes. However, the high level of player winnings in Q1 2023 led to stability of revenue from sports betting and online gaming open to competition, at €129 million.

2023 targets confirmed

Based on this good start to the year, FDJ Group reaffirms its 2023 targets in terms of both business growth and margin with:

• Revenue growth of between +4% and +5% based on a 2022 pro forma basis that integrates the acquisitions of Aleda and L’Addition over the full financial year, representing €2,514 million;
• Growth of approximately 20% in online stakes;
• A recurring EBITDA margin of around 24%.

The highest sustainability rating in the Hotel, Leisure and Services sector maintained by Moody’s ESG Solutions for the 5^th year in a row[2]

The FDJ Group is rated by Moody’s ESG Solutions, a provider of environmental, social and governance (ESG) assessments and data. For 2022, it received a rating of 72/100, stable compared to the previous year. This rating confirms FDJ’s position among the best-performing companies with regard to extra-financial criteria and reflects the relevance of the Group’s CSR policy.

Thus, FDJ ranks 20^th out of almost 5,000 companies worldwide monitored by Moody’s ESG Solutions. In the Hotels, Leisure and Services sector, made up of 44 international companies, which includes gambling players, FDJ is No. 1 in the rankings for the 5^th year in a row.

The Group got 67/100 on environmental criteria, 74/100 on social criteria, and 71/100 in terms of governance; these results are significantly above averages in the Hotels, Leisure and Services sector, at 34/100, 34/100 and 47/100 respectively.

Confirmation of La Française des Jeux’s monopoly by the French Council of State

Taken to court in December 2019 by an association and several gambling companies, the French Council of State (Conseil d’état) ruled on 14 April that the monopoly of La Française des Jeux complies with European Union law.

The Council of State also ruled that the 25-year duration of these exclusive rights defined in the PACTE law is not excessive.

Finally, with regard to the €380 million paid to the State by La Française des Jeux for these exclusive rights, the Council of State points out that it will decide after the European Commission’s ruling on the appropriateness of this sum following its investigation into the State aid initiated in July 2021.

Annual General Meeting

FDJ’s Annual General Meeting will be held on Thursday, 27 April 2023 at 14:30 p.m. at the Convention Centre of Issy-les-Moulineaux (Palais des Congrès – 25, avenue Victor Cresson – 92130 Issy-les-Moulineaux – France).

The event will also be broadcast live on its website https://www.groupefdj.com/fr/actionnaires/assemblees-generales-fdj.html.

On this occasion, the Group will propose to the shareholders a dividend of €1.37 per share for FY 2022, to be paid on 9 May 2023.

The Group’s next financial communication

FDJ will publish its half-year results on Thursday, 27 July 2023 after the market close.