La Française des Jeux: Continuation of Good Momentum in Q3 2021
Confirmation of the 2021 outlook
Comments and variations for the third quarter are in relation to 2020, while
those for the nine months to the end of September are in relation to 2019^1
* Continuation of good momentum in Q3 compared with 2020
- Quarterly revenue of €529 million (+5%) and stakes of €4.5 billion (+4%)
- Good trend in stakes at points of sale (+2%), driven by the reopening of the
entire network from the beginning of June
- Continuation of dynamic growth in online stakes (+20%), representing nearly
11% of total stakes
* In the nine months to end-September, compared with 2019, revenue of €1,611
million (+8%) and stakes of €13.7 billion (+9%)
* Confirmation of the 2021 outlook
- Based on its revenue at the end of September, and with a stabilised health
environment, FDJ confirms its outlook for 2021, namely revenue of €2.2 billion
on the basis of stakes of approximately €18.8 billion, and an EBITDA margin
greater than or equal to 22%
Business Wire
BOULOGNE-BILLANCOURT, France -- October 14, 2021
Regulatory News:
La Française des Jeux (FDJ) (Paris:FDJ), France’s leading gaming operator,
announces its revenue for the nine months to end-September 2021.
Stéphane Pallez, Chairwoman and CEO of FDJ, said: “The good recovery in our
business seen in the second quarter has continued, both online and in our
point-of-sale network, with a 5% increase in third-quarter revenue. We are
confident that we will achieve our full-year objectives and we have faith in
our sustainable growth strategy, which combines financial performance and
responsible gaming commitment. In the meantime, FDJ Group has recently renewed
its support for the most vulnerable groups, in the form of an exceptional €2
million programme in favour of young people hit hard by the health crisis.”
Key figures (in millions of euros)
9M 9M 9M 2021/2019^1 Q3 Q3 Q3 2021/2020
2021 2020 2019^1 2021 2020 2019^1
Revenue 1,611 1,352 1,498 +7.5 % 529 504 503 +5.1 %
Stakes 13,695 11,277 12,579 +8.9 % 4,536 4,378 4,126 +3.6 %
In Q3 2021, compared with 2020, revenue grew by 5% to €529 million, based on
growth of 4% in stakes.
Revenue was up across all of the Group’s businesses:
- For lottery games, the increase in revenue (+4%) was driven by that of
stakes (+6%), with:
* Instant game stakes up 8% at €2.2 billion, notably with the success of the
fourth edition of the Mission Patrimoine game;
* Draw games stakes up 2% at €1.4 billion, benefiting from favourable Loto
events, including long cycles and a record jackpot of €26 million.
- For sports betting, revenue was up 7% on stakes down 3%. The contrasting
trend is attributable to a decrease in the player payout (PPO) ratio.
* The decline in stakes is attributable to an unfavourable comparison base,
as the third quarter of 2020 benefited from the rescheduling of numerous
sporting competitions initially planned for the second quarter, such as
the UEFA Champions League.
- Stakes were up across all distribution channels:
* +2% in points of sale, to more than €4 billion;
* +20% online, to nearly €0.5 billion. This trend reflects continued growth
momentum in the wake of the health crisis, particularly for online lottery
games, whose performance continues to be driven by growth in the number of
players.
Player winnings totalled €3.1 billion, up more than 3%, representing a PPO
ratio of 68.9%, compared with 69.3% in Q3 2020.
As such, gross gaming revenue (GGR: stakes less player winnings) increased by
5% to €1.4 billion, while net gaming revenue (NGR: GGR less contribution to
public finances), which accounts for the bulk of the Group’s revenue, was up
4% at €516 million; revenue from other activities rose by €3 million to €13
million.
Cumulatively at the end of September, compared with 2019, revenue was up 8% at
€1.6 billion, with stakes up 9%.
Revenue was up for both lottery games and sports betting.
- For lottery games, the increase in revenue (+5%) was in line with that of
stakes.
- For sports betting, revenue grew at a slower pace than stakes (+17% vs +25%)
due to the increase in the PPO ratio.
Player winnings totalled €9.4 billion, based on a PPO ratio of 68.8%, compared
with 68.2% in the nine months to end-September 2019.
As such, GGR was up 7% at €4.3 billion, and NGR up 7% at €1.6 billion; revenue
from other activities amounted to €37 million (+€9 million).
2021 Outlook
In view of revenue at the end of September, and with a stabilised health
environment, FDJ confirms its outlook for 2021, with:
- Revenue of €2.2 billion, based on stakes of approximately €18.8 billion;
- EBITDA margin greater than or equal to 22%; and
- Conversion of EBITDA into free cash flow^2 maintained at over 80%.
The Group’s next financial communication
FDJ will report its 2021 revenue and earnings on Wednesday 16 February 2022
before the start of trading.
Forward-looking statements
This press release contains information on FDJ Group’s objectives, as well as
forward-looking statements. These statements do not reflect historical data
and must not be interpreted as guarantees that the facts and data mentioned
will occur. The information contained herein is based on what the Group
considers to be reasonable data, assumptions and estimates. FDJ operates in a
competitive and rapidly changing environment. The Group is therefore not in a
position to anticipate all of the risks, uncertainties or other factors likely
to impact its activity, the potential impact thereof on its activity, or even
to what extent the materialisation of a risk or a combination of risks could
present significantly different results from those mentioned in any
forward-looking statements. The information contained herein is provided
solely as at the date of the present press release. The Group makes no
commitment to update these forward-looking statements or the assumptions on
which they are based, aside from the fulfilment of any legal and regulatory
obligations incumbent upon it. FDJ will disclose to the market any updates to
information provided that are likely to have a significant impact on its
activities, results, financial position or outlook, in accordance with
applicable regulations, and will comply with the ongoing disclosure
obligations applicable to all companies whose shares are listed for trading on
the regulated market of Euronext Paris.
About FDJ Group
FDJ is the historical and unique lottery operator in France, the #2 in Europe
and #4 worldwide. It offers a range of enjoyable, responsible games to the
general public, both at points of sale and online: lottery games – draw games
and instant games – and sports betting (Parions Sport). FDJ’s performance is
driven by a portfolio of iconic and recent brands, the #1 local sales network
in France, a growing market, recurring investment and a strategy of innovation
to make its offering and distribution more attractive with an enhanced gaming
experience.
FDJ Group is listed on the regulated market of Euronext Paris (Compartment A –
FDJ.PA) and is part of the SBF 120, Euronext Vigeo 20, STOXX Europe 600, MSCI
Europe and FTSE Euro indices.
For further information, www.groupefdj.com
Appendices
2019 data restated with full-year application of the new tax regime effective
from 1 January 2020 and the consolidation of Sporting Group, but without
restatement for long lottery cycles.
Change Change
In € million 30.09.2021 30.09.2020 09.2021 vs. 30.09.2019 09.2021 vs.
09.2020 restated 09.2019
restated
Stakes* 13,695 11,277 +21.5 % 12,579 +8.9 %
Of which lotteries 10,480 9,188 +14.1 % 9,980 +5.0 %
Instant lottery 6,499 5,605 +15.9 % 6,015 +8.0 %
games**
Draw games 3,982 3,583 +11.1 % 3,965 +0.4 %
Of which sports 3,189 2,060 +54.8 % 2,559 +24.6 %
betting
Digitalised stakes*** 3,852 2,489 +54.8 % 2,447 +57.4 %
Offline stakes 12,141 10,249 +18.5 % 11,766 +3.2 %
* Stakes reflect wagers by players, and do not constitute the revenue of the
FDJ Group
** Mainly scratch games (point of sale and online)
*** Digitalised stakes include online and digitalised stakes at the point of
sale, i.e. using a digital service/application for their preparation, prior to
registration by the distributor
Change Change
In € million 30.09.2021 30.09.2020 09.2021 vs. 30.09.2019 09.2021 vs.
09.2020 restated 09.2019
restated
Stakes 13,695 11,277 +21.5 % 12,579 +8.9 %
Prizes won 9,420 7,678 +22.7 % 8,574 +9.9 %
Player payout ratio 68.8 % 68.1% +0.7 bp 68.2 % +0.6 bp
Gross gaming revenue 4,275 3,598 +18.8 % 4,005 +6.7 %
(GGR)
GGR as % of stakes 31.2 % 31.9 % -0.7 bp 31.8 % -0.6 bp
Net gaming revenue 1,574 1,323 +19.0% 1,470 +7.1 %
(NGR)
NGR as % of stakes 11.5% 11.7% -0.2 bp 11.7 % -0.2 bp
Revenue 1,611 1,352 +19.1 % 1,498 +7.5%
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^1 2019 data restated with full-year application of the new tax regime
effective from 1 January 2020 and the consolidation of Sporting Group, but
without restatement for long lottery cycles.
^2 Free cash flow: cash flow generated by operations after investments related
to operations.
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