FDJ Buoyant on Lottery Results in H1 and Cautiously Optimistic about Future

Groupe FDJ has posted results for the first half of the year noting a significant improvement in lottery operations in France. The organization reported that group revenues reached €1.2 billion during the first half of the year, which was 12% higher year over year.

Lottery Remains Driver of Sales for FDJ

Lottery and sports betting were once again leaders and listed as key drivers of revenue, but the lottery took precedence with €8.9 billion out of €10 billion in sales linked to various lottery products.

FDJ attributed these results to the fact that much of the lottery business had gone back to normal and argued that the launch of strategic points of sales helped contribute to the present results. Improved lottery results led to €943 million in lottery net revenues.

FDJ CEO and chairwoman Stéphane Pallez welcomed the positive outcome in a statement. She drew attention to the lottery product which had fared well in online and retail. However, the global financial predicament that many economies and sports face will most likely have a bearing on future results. Nevertheless, FDJ believes that it has what it takes to ensure that its strategy remains adequate and aligned with its long-term goals.

While Parions Sport saw a decline in betting gross gaming revenue to €485 million or down 5% year-over-year, lottery stood strong. Sports betting decline has been mostly attributed to the different dynamics during the first half of the year. In the previous year, there were high-profile tournaments to bet on.

FDJ expects sports betting to pick in H2 when the World Cup arrives. FDJ’s EBITDA for the period sat at €308 million. Despite these encouraging results and expected continued recovery, the organization warned that there are some economic headwinds that need addressing.

Successful Platform Integration and Future Outlook

Still, FDJ is also moving on with successful acquisitions that will enable it to continue sustaining good sales and attract consumers by offering them an intuitive and integrated offer. Payment system providers l’Addition and Aleda were both acquired by FDJ in order to slash operational costs while offering consumers easier onboarding.

A big part of FDJ’s future resilience will depend on continuous investment in current and innovative operational capacities, Pallez explained in the press release. All of this points to a sustainable and profitable growth strategy that should help guide the company in the months to come.