FDJ reports €2.6bn in FY 2023 GGR as acquired businesses boost finances
French operator also notes jumps in EBITDA and net income as it prepares for landmark 2024 with potential Kindred acquisition
La Française des Jeux (FDJ) has reported a 6.5% year-on-year (YoY) increase in gross gaming revenue (GGR) to €2.6bn (£2.2bn) for full-year (FY) 2023.
The French operator noted “strong lottery fundamentals” coupled with “good momentum” in sports betting as key drivers for the YoY growth.
The GGR spike was matched by an 11.3% YoY increase in recurring EBITDA to €657m, with a corresponding margin of 25.1%.
Additionally, operating income jumped 15.8% to €532m, while net income soared 38.15% to €425m.
The increase in financial KPIs for the operator follows its £2.1bn bid for Kindred Group, tabled last month, that, if approved, would see the creation of one of the largest gambling businesses in Europe.
Breaking the group’s performance down by vertical, lottery revenue totalled €1.9bn, an increase of 1.1% YoY.
Revenue from sports betting and online poker in France amounted to €518.1m, up 10.9% compared to 2022.
FDJ noted the acquisition of French horseracing operator ZEturf played a key role in the increase.
Finally, revenue from the group’s international and payments arm landed at €165.5m.
FDJ said the acquisitions of Premier Lotteries Ireland, as well as payments firms L’Addition and Aleda (both completed in H2 2022), were the core reasons behind the division’s growth.
The operator added that its 2023 performance had contributed to 0.25% of all of France’s gross domestic product, while contributing more than €4.3bn in tax.
Looking ahead to 2024, FDJ said it was expecting revenue from French lottery and sports betting to increase 5%, while revenue from international operations and payments to rise 8%.
FDJ said these expectations did not include any potential contribution from Kindred.
The public tender offer for the Unibet parent company will open on or around 20 February for a nine-month period.
Stéphane Pallez, FDJ CEO, said: “FDJ delivered solid growth and results this year. The group reached in 2023 a major milestone in the implementation of its strategy with the completion of the acquisition of Premier Lotteries Ireland and ZEturf.
“The proposed acquisition of Kindred, announced at the end of January, will enable the creation of a European champion and significant value creation for the benefit of all stakeholders, in line with our model combining performance and responsibility.”
The group’s share price was up slightly at the time of writing to €39.12.