Posted on: October 24, 2023, 06:51h.
Last updated on: October 24, 2023, 06:51h.
France’s Française des Jeux (FDJ) has experienced a mix of successes and setbacks this year in the gaming, lottery, and sports betting industry. While the company has seen improvements in revenue, it has had to adjust its full-year guidance due to market changes.
Following its acquisition of ZEturf and entry into the horse racing betting market, FDJ is now the fourth operator in France’s competitive sports betting and online gaming industry, controlling approximately 10% of the market.
Although FDJ expects a boost in the final quarter from the recent acquisition, the third quarter results were significantly impacted and led to a revision of the company’s projections.
Challenges in Jackpot Offerings
FDJ faced challenges in the third quarter due to a lack of large jackpots in the Euromillions lottery and the limited popularity of its new Amigo game. Despite an overall increase in revenue this year, the third quarter results prompted FDJ to revise its growth projection.
Revenue declined by 1% year-on-year in the third quarter, amounting to €586 million (US$625.79 million). However, revenue for the first three quarters of the year increased by 4%.
The lottery segment experienced a substantial 6% decline in Q3, which contributes to around 77% of FDJ’s overall revenue. Additionally, stakes decreased by 2% year-on-year, with €4 billion (US$4.27 billion) reported for the third quarter.
As a result, FDJ has adjusted its growth projection for this year, expecting a maximum year-on-year increase of 5% due to anticipated changes in revenue. This projection is lower than the earlier predictions of a 5% or more improvement over last year.
Despite the challenges, FDJ remains confident in achieving its 2023 target of approximately 24% operating margin (EBITDA) through effective expense management.
Exciting Developments Ahead
FDJ expects a more favorable performance in Q4 with the launch of EuroDreams, a new lottery option in several European countries.
EuroDreams, offering a chance to win €20,000 (US$21,358) a month for 30 years with just €2.50 (US$2.67), is expected to be a major hit among European lottery players.
Combining nine other lotteries across Europe, EuroDreams is the first annuity game on a European scale. The first draw will take place on November 6, with ticket sales starting on October 30.
In addition, FDJ is set to take over the Irish Lottery, further contributing to the EuroDreams project. The company won a bidding war involving Allwyn, International Game Technology, and Australia’s Lottery Corp. The acquisition of Premier Lotteries Ireland, the current operator of the Irish Lottery, is nearing completion.