FDJ Posts YTD Results as Moody’s Reiterates Good ESG Rating

La Française des Jeux (FDJ) has published its official report for the first nine months of the year, reporting strong results in the wake of the merger with Kindred Group. The company’s recent acquisition cemented it as a “European champion” with a diversified and balanced profile.

FDJ reported year-to-date revenue of EUR 2.01 billion ($2.18 billion), up 12% year-on-year, of which EUR 1.9 billion ($2.06 billion) came from the company’s operations in France.

The lottery segment remained the main revenue driver, posting revenue of EUR 1.5 billion ($1.6 billion), up 8% YOY. The segment was underpinned by strong performance across all game ranges. Sports betting contributed an additional EUR 407 million ($441.4 million), up 13% year-on-year.

Point-of-sale revenue rose by 3% in France and by 9% including Ireland. Digital revenue, meanwhile, increased to EUR 302 million ($327.5 million).

FDJ Keeps Top Spot in Moody’s Hotel, Leisure, Goods and Services List

In the meantime, Moody’s reiterated a very good environmental, social and governance (ESG) score for FDJ, cementing its position as the top player in the Hotel, Leisure, Goods and Services sector. The ESG ratings and data company gave FDJ a score of 71/100, putting it ahead of its competitors. At the same time, FDJ ranks 31^st out of all 4,500 companies worldwide rated by Moody’s.  

Stéphane Pallez, FDJ’s chief executive officer and chair, praised the strong financial and non-financial results, which have set up the company for a successful 2024. Praised the completion of the Kindred acquisition, which will diversify the business and generate benefits for all stakeholders.  

FDJ Updates Outlook in the Wake of the Kindred Acquisition

FDJ updated its outlook, saying that it expects its full-year revenue to increase by 9%. EBITDA margin for 2024 was projected to stand at around 25%.

When accounting for its recent EUR 2.5 billion acquisition of Kindred, FDJ expects 2024 revenue growth of around 16% and EBITDA margin of around 25%.

For context, FDJ currently holds a 91.77% stake in Kindred thanks to a historic merger. After months of regulatory setbacks, the French operator succeeded in completing the takeover and is now working on expanding its stake to 100%.

By acquiring one of the top five online gaming companies in Europe, FDJ created what it called a “European champion” with a diversified and balanced profile.

FDJ believes that if Kindred had been acquired on January 1, 2023, the company would have published a combined revenue of EUR 3.5 billion for FY 2024. If the company had been acquired on January 1, 2024, on the other hand, FDJ believes that combined revenue would have stood at EUR 1.9 billion for H1 2024 and EUR 2.8 billion for the year-to-date.

Kindred, meanwhile, just published an unaudited financial update ahead of its Q3 results. The publication was in line with its agreement with FDJ.