July 26, 2024 3 min read

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FDJ Posts H1 Report, Refutes Kindred Deal Concerns

At the company’s analyst call, CFO Chaffard emphasized his confidence that the French regulators would greenlight the deal

La Française des Jeux (FDJ) has published its H1 results, posting an increase in gaming revenue. In the meantime, the company’s chief financial officer addressed the looming acquisition of Kindred Group.

FDJ’s H1 Results Were in Line with Expectations

FDJ’s H1 report highlighted revenue of EUR 1.4 billion ($1.5 billion), marking an 11% increase year-on-year.

Revenue from gaming activities in France was up 7% to almost EUR 1.3 billion ($1.4 billion) Lottery revenue constituted the larger part of this figure, increasing 5% to over EUR 1 billion ($1.1 billion). Lottery gaming, FDJ said, was driven by a good performance of its instant and draw games. Sports betting revenue, meanwhile, rose sharply to EUR 294 million ($319 million).

FDJ also reported a dramatic increase in digital revenue to EUR 201 million ($218 million), up 40% year-on-year. The company attributed these results to the increase in active players.

Recurring EBITDA, meanwhile, reached EUR 370 million, up 23% year-on-year, at a margin of 25.9%. Adjusted net profit for the period stood at EUR 235 million, up 28% year-on-year.

The company confirmed that it has met its H1 targets. Stéphane Pallez, the company’s chair and CEO, said that Q2 confirmed the positive trends set at the beginning of 2024.

This solid performance confirms our annual targets. In addition, we hope to finalize the acquisition project of Kindred in the near future, thereby marking a major new step in the Group’s development, both internationally and in our online sports betting and gaming activity, to the benefit of all our stakeholders.

Stéphane Pallez, chair & CEO, FDJ

FDJ Says Its Acquisition of Kindred Would Not Monopolize the Market

Speaking of the Kindred acquisition, FDJ’s chief financial officer, Pascal Chaffard, just dismissed concerns related to the deal, denying that it would cause monopolization issues. At the company’s analyst call, Chaffard emphasized his confidence that the French regulators would greenlight the deal.

Critics claimed that FDJ’s acquisition of Kindred would strengthen its grip on the French lottery and betting market, preventing fair competition. However, even this acquisition would not make FDJ the biggest active operator in France, Chaffard argued. He said that even after acquiring Kindred, FDJ would lag behind Winamax and Betclic, which collectively command roughly 60% of the French betting market.

Additionally, the CFO tried to differentiate FDJ’s lottery and betting arm, noting that they use separate customer wallets and cater to different types of players.

FDJ’s acquisition of Kindred is expected to close later this year.

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