FDJ Report A Revenue Increase of 5.5% in H1 and Praise Its 2020 Strategy

French gaming operator, La Française des Jeux (FDJ), has reported a significant year-on-year 5.5% increase in revenue for the first half of this year. Chief executive, Stéphane Pallez, is crediting the driving growth to FDJ 2020 digital transformation strategy.

Amounts wagered for the six months to June 30th, increased 7.2% to €8.4bn (£7.5bn/$9.4bn)…

…aided by growth across all product verticals.

Lottery sales were up 5.2% year-on-year at €6.6bn. From that, €4.1bn came from instant win sales, across FDJ’s retail network and online casinos, while draw-based game sales rose 1.6% to €2.5bn.

The instant win category benefitted from the launch of the €3 Quitte ou Double scratch card in March according to the operator. It is the first title that could be bought at a point of sale, and then continue to be played online. Almost 50% of ticket winners took advantage of that online component.

For draw-based games, FDJ said growth had been driven by…

…expanding the retail network, and players shifting online.

In H1, the number of online players rose 20% year-on-year, aided by uptake in the operator’s mobile offering.

Meanwhile, sports betting experienced a total stake growth of 15.0% to €1.8bn. This is the new record for the vertical, mostly due to this year’s Africa Cup of Nations and the FIFA Women’s World Cup, when the wagers were at its maximum.

FDJ’s sports betting brand, ParionsSport, benefitted greatly from updates to its product offering…

… as well as partnerships with French football clubs and the US National Basketball Association. Growth is expected to continue in the second half of the year, due to the Rugby World Cup.

H1 Success Illustrates the Brand’s 2020 Strategy

Commenting on the increase in the company’s revenues, chief executive, Stéphane Pallez, had this to say:

“The performance and achievements of the first half of 2019 illustrate the success of our 2020 strategy, aimed at continuing growth through the digital transformation of FDJ. The growth of the business continues with the development of our online offering and a strong commitment to responsible gaming.”

For the company, the first half of 2019 brought significant strategic progress in a number of areas.

Via its FDJ Gaming Solutions subsidiary, it acquired betting technology and trading specialist Sporting Group. All that is enhancing the brand’s B2B offering and allowing it to accelerate international expansion plans.

The operator also won a tender to process payments to the General Directorate of Public Finance, in partnership with the French Confederation of Newsagents. Meaning that from next year, of the public will be able to pay taxes, fines and state utility bills through newsagents across , powered by FDJ’s payment technology.

“We are setting the stage for the group’s future development and strengthening the resilience of our business model, including the development of the international B2B business and payment services, two strategic axes of our 2025 strategy, recently adopted by the [FDJ’s] board of directors,” Pallez added.

Plans to sell off the French government’s 72% stake in the business are also moving forward.

With the body responsible for the sale, the Agence des Participations de l’Etat (APE), selecting a consortium of eight banks to oversee an initial public, the company expects swift positive results.

Source:

“FDJ praises 2020 strategy as revenue grows 5.5% in H1”, igamingbusiness.com, July 25, 2019.