Francais Des Jeux Recovers From Covid Impact
French lottery operator Francais Des Jeux reports a return to normal after the impact of Covid. They register a 17.5% year-on-year increase in revenue as France’s easing of restrictions enables more retailers to function.
French Lottery Operator Sees Covid Recovery © Pixabay.
Revenue levels at French operator Francais Des Jeux (FDJ) are returning to pre-pandemic levels as the company reported a 17.5% year-on-year (YoY) increase in revenue to €2.25bn (£1.88bn).
The French equivalent to the National Lottery revealed a year-on-year increase of 18.9% in the amount staked with the operator in a trading update. The figures show that FDJ received €19bn during 2021. The operator revealed that operating profits were up 21% to €393m, while net profits rose 37.6% year-on-year to €294m.
The company also revealed that earnings before interest, taxes, depreciation, and amortisation (EBITDA), which is used as an indicator of the overall profitability of a business, increased by almost a quarter (22.3%) to €522m in 2021. This figure meant an EBITDA margin of 23.1%.
The lottery company’s results were helped by lifting the Covid restrictions introduced to slow down the spread of the pandemic. Like the UK, France has gradually lessened conditions of movement, which has meant the reopening of 30,000 points of sale. In addition, vaccine passes have been issued to those who have had the required vaccinations, allowing a degree of normality to return. However, 19.3% of the French public remain unvaccinated.
Sales across FDJ’s network rose by 5%, which the company called “strong momentum”. However, it is online operations that have seen a significant upturn. Online stakes rose by 42% compared to 2020 figures and now accounts for 11% of sales, up from 6% in 2019, representing a year-on-year increase of 37%.
FDJ said: “This performance is still attributable mainly to the increase in the number of players, which exceeded 4 million at the year-end. More than two years ahead of pre-health crisis expectations, online lottery stakes now amount to nearly €1.6 billion and account for nearly 11% of total lottery betting, double the 2019 level,”
The better than expected results have enabled the operator to revise its 2022 financial targets, and they now hope to see a revenue growth spike of 5% with an EBITDA margin above 23.5%. The company has also adjusted its longer-term projections, revising its 2025 targets set at the time of its initial public offering.
FDJ’s CEO Stéphane Pallez said the results showed the company was back on track, and the figures represented a return to “pre-crisis growth trajectory”.
“The group’s 2021 results are significantly higher than those recorded in 2019, thanks to the acceleration online and the growth within our network of points of sale,” Pallez explained.
“This performance demonstrates the relevance of our strategy and leads us to revise upwards the 2025 objectives communicated at the time of the Group’s IPO, both in terms of growth and EBITDA margin.
“At the same time, we are continuing our societal commitments, which have already been significantly strengthened since the start of the health crisis. FDJ will carry on combining financial performance with extra-financial commitments for the benefit of all of its stakeholders,” Pallez added.
