FDJ reports 6% revenue rise
La Française des Jeux (FDJ) reported 6 per cent increase in sales in third-quarter results posted Wednesday, beating the target it set three months ago when it warned the coronavirus pandemic could wipe 10% to 15% off sales.
Stakes were up +6%, to €4.4 billion, with revenues stable at €0.5 billion, compared to the 3rd quarter 2019. Strong growth in sports betting, up +27% to nearly €1 billion, both online and in point-of-sale.
For financial year 2020, without new measures of general restrictions linked to the evolution of the health environment, FDJ anticipates stakes of around €16 billion, or a decline of only -6% revenue of around €1.9 billion, i.e. -7% an EBITDA margin on revenue of around 21%.
Player winnings stood at €3 billion, up more than 9%, i.e. a player payout (PPO) ratio of 69.3%, compared to 67.3% in Q3 2019. The increase in the PPO reflects the change in the mix of stakes, with a greater share of sports betting whose PPO increased significantly. This is due in particular to several football competitions whose results were easier to predict, unlike those of the first half of 2020.
Stéphane Pallez, Chairwoman and CEO of the FDJ Group, said: “The third quarter confirmed the good momentum seen since mid-June and a recovery in our business at levels comparable to 2019.
The Group thus demonstrates its resilience and its reactivity. Over the entire year, without new measures of general restrictions linked to the evolution of the health environment, the impact of the crisis on our revenue should be contained, and our EBITDA margin should remain at a high level, thanks to the strong mobilisation of our employees and our distribution network, as well as the cost reduction measures that we have implemented as early as March.”