FDJ Posts Q1 Results, Confirms Readiness to Acquire Kindred

La Française des Jeux (FDJ), France’s leading gaming operator, has published its Q1 results, reporting an increase in revenue. The group experienced significant growth across several segments and reaffirmed its acquisition of Kindred Group.

Gaming revenue in France reached EUR 645 million ($688 million), up 3% year-on-year. Total revenue for Q1 2024, on the other hand, was up 7.2% to EUR 710 million ($757 million). The lottery segment remained the main driver of revenue and was responsible for EUR 504 million ($537.6 million) of the total revenue, up 1.4%. The segment was underpinned by growth in instant games and the success of new gaming portfolio additions, such as Ticket d’Or. Draw games, however, experienced a slight decline.

The sports betting and online gaming vertical, on the other hand, brought in revenue of EUR 141 million ($150.4 million), up 9.5% year-on-year. The vertical was impacted by the recent integration of ZEturf into the FDJ portfolio. Sports betting was further underpinned by the strong growth of the ParionsSport En Ligne brand.

The group’s other activities (international and Payment & Services), meanwhile, generated revenue of EUR 65 million ($69.3 million), representing an increase of 77.4%.

Stéphane Pallez, FDJ Group’s chairwoman and CEO, commented on the results, saying that her company has made a good start to the year.

All our activities are growing, thanks to our network of over 29,000 retailers and a dynamic online gaming business, which now accounts for 15% of the Group’s gaming revenue. We are also confidently pressing ahead with the Kindred acquisition announced at the end of January.

Stéphane Pallez, chair & CEO, FDJ Group

The Dutch Regulatory Changes Will Not Affect the Acquisition

Speaking of Kindred, FDJ confirmed that the Netherlands’ potential blanket ban on advertising and online will not impact its planned acquisition of the operator group. The French company’s chief financial officer, Pascal Chaffard, expressed conviction that the ban on slots will not be implemented.

Additionally, the ban on ads might actually benefit Kindred, the CFO claimed, since it would benefit market leaders, such as Kindred.

Chaffard concluded that his team is naturally prepared for certain difficulties in new jurisdictions.

For reference, FDJ opened its tender offer for Kindred on February 20. Its completion is still subject to regulatory approvals and the acquisition of at least 90% of the latter company’s share capital. FDJ currently owns 1.12% of Kindred’s outstanding shares and has irrevocable commitments to acquire another 26.82%.