• Turnover of €1,428 million, up +11% compared to the first ^half of 2023 and +5% on a comparable basis [1]
  • Revenue from gaming activities in France [2] up +7% to €1,299 million
    • Lottery growth up 5% to €1,005 million, thanks to good performance of instant games and draws
    • Strong increase in sports betting and online gaming in competition of +15%, to €294 million, accentuated by exceptionally favorable sports results for FDJ
  • Digital revenue up sharply to €201 million, +40% taking into account the acquisitions of PLI and ZEturf and 25% on a comparable basis. This performance is still largely attributable to the increase in the number of players, and brings the share of digital in revenue to 15%. Point-of-sale revenue increased by +8% and by +3% in France alone
• Current EBITDA of €370 million, up +23%, i.e. a margin of 25.9% which benefits from the exceptional effect of the high margin of sports betting
• Adjusted net profit [3] of €235 million, up +28%  : Maintaining a high level of financial results
• 2024 targets confirmed  : Growth in Group turnover of around +8% and around +5% for gaming activities in France. Current EBITDA margin of around 24.5%

Boulogne, July 25, 2024 (5:45 p.m.) – La Française des Jeux (FDJ), the leading operator of games of chance and gambling in France, announces its turnover and results for the first ^half of 2024.

Stéphane Pallez , Chairman and CEO of the FDJ group, said: "  The second quarter confirmed the positive trend seen at the start of the year, with growth in our business supported by our network of points of sale and by very strong momentum in digital games, which now represent 15% of the Group's turnover. This solid performance reinforces our annual objectives. Furthermore, we hope to finalize the acquisition of Kindred soon and thus take a new major step in the Group's development, both internationally and in the online gaming and sports betting business, for the benefit of all our stakeholders. "

Key figures (in millions of euros)

* Turnover: net gaming revenue and revenue from other activities

** Adjusted net income: To reflect the Group's actual economic performance and enable its monitoring and comparability with that of its competitors, FDJ is establishing a new indicator as of the publication of the 2024 half-yearly accounts.
The Group has decided to restate the following from the consolidated net income:

– depreciation provisions for intangible and tangible assets, recognized or revalued when allocating the acquisition price of business combinations

– non-cash impact effects related to foreign exchange hedging of acquisitions, recorded in other non-current operating expenses

– and the variations in deferred taxes resulting from these elements

*** Current EBITDA: current operating profit adjusted for depreciation and amortization provisions

Highlights of the first half of ^the year

• Renewal of the mandate of Stéphane Pallez as President and CEO

The Board of Directors of the FDJ Group has approved the renewal of Stéphane Pallez in her role as Chairwoman and CEO, for a four-year term. This renewal is part of the renewal of Stéphane Pallez's term as director, submitted to the vote of the shareholders of the FDJ Group meeting on April 25, 2024 and approved by 94.2%.

• Takeover bid for Kindred

On February 20, 2024, the tender offer for Kindred was opened for a maximum period of 39 weeks. Its completion is subject in particular to obtaining regulatory authorizations and to the acquisition by FDJ of at least 90% of Kindred's capital.

Today, the authorization decision of the French Competition Authority (ADLC) is the last regulatory condition necessary for the finalization of this offer.

On May 14, FDJ notified the ADLC of the proposed acquisition of the Kindred group by means of a public purchase offer. Following third-party observations and market questioning, FDJ proposed adjustments to its commitments made in 2023 as part of the acquisition of ZEturf, relating to the separation of activities under exclusive rights from those open to competition.

The Group estimates [4] that it would have recorded (i) combined revenue of approximately €3.5 billion and combined recurring EBITDA of approximately €840 million for the full year 2023 if the acquisition of Kindred had taken place on January 1, 2023 ^and (ii) combined revenue of €1.9 billion and combined recurring EBITDA of approximately €490 million for the first half of ²⁰²⁴  if the acquisition of Kindred had taken place on January 1, ²⁰²⁴ .

• Cancellation of 3% of FDJ capital following the Court of Cassation ruling in favor of the FDJ group in the context of the dispute opposing it to Soficoma

This decision by the Court of Cassation, which definitively closes the dispute, results in the cancellation of 5,730,000 FDJ shares and the corresponding reduction in FDJ's capital, which now stands at 185,270,000 shares.

• Payment & Services: launch of Nirio Premio and a free-flow motorway toll payment offer
  • Nirio, the payment solution from FDJ Services, launched Nirio Premio at the end of April, an offer combining an account domiciled in France and a payment card, associated with budget management tools.
  • Since the end of June, Nirio has also made it possible to pay motorway tolls in a free flow manner, in cash or by card, in the approved bar-tabac-presse network. This payment is now available to customers on the A14 and A79.

• Sustained societal commitment to responsible gaming, inclusion, and the environment
  • Actions to prevent underage gambling and excessive gambling have been strengthened, with proven results
    • The share of gross revenue from online lottery games made with high-risk players is 1.6% [5] , compared to 1.8% at the end of December 2023, a level below the 2025 target of less than 2%.
    • The Group, which devotes 10% of its annual advertising investments to the prevention of underage gambling and excessive gambling, broadcasts campaigns reminding people of the ban on gambling for minors and the importance of setting limits for recreational activities.
      • As with every major sporting event, FDJ has stepped up its prevention actions as part of the Euro football championship, including an intensification of responsible gaming TV campaigns. In addition, nearly 1,500 awareness calls to sports betting players were made before and during the competition.
    • “Heritage 2024”: the FDJ Foundation supports two projects in favor of inclusion and education to the tune of 3 million euros
      • The FDJ Corporate Foundation is supporting two new projects as part of its “Heritage 2024” call for major projects, to the tune of 3 million euros. The first, “BEING and BECOMING”, trains young people who have dropped out of school in ecological transition careers. The second, “100% Inclusion Sports Recreation”, develops sports practice for vulnerable children.
    • A recognized commitment in the fight to reduce its carbon footprint
      • ^{For the third} consecutive year, FDJ has obtained the “A” carbon score from the Vérité40 index established by the investment consultancy firm Axylia and composed of the 40 best carbon scores of SBF 120 companies.
    • Continuation of the Group's sponsorship of the French Office for Biodiversity
      • The FDJ group has renewed its commitment to the French Office for Biodiversity (OFB) with the signing of a new sponsorship agreement providing for support of 700,000 euros over two years. FDJ thus intends to continue its commitment as a "Grand Patron" of the OFB by supporting three new biodiversity preservation projects in France and overseas.

Semester activity and results

Gross gaming revenue (GGR) for the first ^half of 2024 amounts to €3,660 million, up +11.1%. After €2,304 million in public levies, net gaming revenue (NGR) stands at €1,356 million, up +11.3%.

Taking into account the income from other activities of 72 million euros, the half-yearly turnover of the FDJ group stands at 1,428 million euros, an increase of +10.8% and +4.7% on a comparable basis.

Turnover of 1,428 million euros, up +10.8% and +4.7% on a comparable basis

• Revenue from gaming activities in France increased by +7.0% to 1,299 million euros.
  • Lottery revenues stood at €1,005 million, up +5.0% and +7.8% excluding Amigo. Digital momentum remains very strong, +24.4% over the half-year, bringing the lottery's digital penetration to 13.8% compared to 11.6% in the first ^half of 2023.

Instant games revenue increased by +6.7%, driven by the success of the games portfolio's events such as the launches of Ticket d'Or (€5) at the beginning of January and the phygital game Maxi Black Jack (€5) in May.

Revenue from draw games increased by +2.1% and by +9.8% excluding Amigo. This performance was driven in particular by EuroDreams and more attractive Euromillions jackpots than in the first ^half of 2023, while Amigo returned to growth at the beginning of June.

• • Revenue from competitive sports betting and online gaming stood at €294 million, up +14.5% compared to the first ^half of 2023, and +6.7% on a comparable basis.

The performance of the 1st ^quarter had been affected by the high comparison base of the 1st ^quarter of 2023, which had notably benefited from the very positive impact of the World Cup at the end of 2022. In the 2nd ^quarter , bets on the Euro football tournament came out below expectations but turnover benefited from results that defied forecasts and were therefore favorable to the operator. The online activity continues to benefit from sustained growth, +28.3% on a comparable basis. This performance reflects the intrinsic dynamics of ParionsSport online, which also benefits from the attractiveness of poker with a high level of cross-selling. The performance of horse racing betting, stable, is in line with that of the market and in line with that of the end of 2023.

• Revenue from other activities (International and Payment & Services) stood at 129 million euros, compared to 75 million euros in the first ^half of 2023, an increase attributable to the integration of PLI, which is performing well, particularly driven by EuroDreams and instant games.
• By distribution channel:
  • Digital revenue increased very strongly, +39.8% taking into account the acquisitions of PLI and ZEturf and +25.1% on a comparable basis. This increase is driven both by competing sports betting and online gaming and by online lottery, which benefits from the very high digitalization rate of EuroDreams as well as the attractiveness of instant games and the exclusive online offer. Thus, the share of digital in revenue stands at 14.8% vs. 11.8% in the first ^half of 2023. This performance is still largely attributable to the increase in the number of players.
  • Point-of-sale revenue increased by +7.5%, an increase mainly attributable to the integration of PLI. In France, point-of-sale revenue increased by +2.6%.

• Contribution margin by activity

The Group's organization is structured around three operational segments: two "Business Units" (BU), the Lottery and the competing Sports Betting and Online Gaming, and the other activities which bring together the developing activities (International and Payment & Services), with cross-functional support functions (notably customer, distribution and information systems), and the holding company which mainly groups together the central costs.

The contribution margin is one of the main performance indicators of these segments. It is calculated by the difference between the segments' turnover and the sales costs (including retailer remuneration), and the marketing and communication costs (excluding depreciation) attributed to them.

• Lottery

The lottery's turnover stood at 1,005 million euros, an increase of +5.0%.

Cost of sales amounted to €536 million, up +1.8% (€9 million) compared to the first ^half of 2023. They mainly correspond to retailer remuneration for €397 million, an increase of +1.0% in line with the network's activity over the period. Marketing and communication costs increased by 5.7%, to €86 million.

The contribution margin of the Lottery BU stands at 383 million euros, i.e. a contribution margin rate of 38.1% compared to 36.4% in the first ^half of 2023.

• Sports betting and online gaming in competition

Revenue from competitive sports betting and online gaming stood at €294 million, up +14.5% compared to the first ^half of 2023 and +6.7% on a comparable basis.

Costs of sales amounted to €125 million, up +1.5% (€2 million) compared to the first ^half of 2023. They mainly correspond to retailer remuneration, the evolution of which is in line with that of network stakes. Other costs of sales increased slightly due to the integration of ZEturf. Marketing and communication costs amounted to €78 million. Their increase of +32.0% (+€19 million) compared to the first ^half of 2023 is explained for more than half by the scope effect.

The contribution margin of the Sports Betting and Competitive Online Gaming BU stands at 91 million euros, representing a contribution margin rate of 30.8% compared to 28.9% in the first ^half  of 2023.

• Other activites

Other activities (International and Payment & Services) recorded a turnover of 129 million euros, up due to the contribution of PLI, for a contribution margin of 25 million euros.

• Holding

Central costs stand at 128 million euros, almost stable compared to the first ^half  of 2023.

Current operating income of 285 million euros and current EBITDA of 370 million euros, i.e. a current EBITDA margin rate of 25.9%

Costs of sales amounted to €736 million, including €517 million in retailer remuneration (+4.9%), based on increased sales outlets, driven in particular by the integration of PLI. The increase in other costs of sales, +5.4% to €219 million, is solely linked to scope effects, mainly PLI.

Marketing and communication costs include costs related to the development of the games and services offering, particularly digital, as well as advertising and communication costs. They amount to €270 million, up +21.3% and +5.3% on a comparable basis.

Administrative and general costs mainly include personnel and operating costs of central functions, as well as building costs and IT infrastructure costs. They amount to €115 million, down -2.8% compared to the first ^half of 2023.

Other operating income and expenses amounted to -22 million euros and mainly included the amortization costs of exclusive operating rights for games in France and Ireland.

The Group's current operating income (ROC) thus stands at 285 million euros, an increase of +19.0% compared to the first ^half of 2023.

Current EBITDA corresponds to current operating income adjusted for depreciation and amortization. It stands at €370 million, up +23.5% compared to the first ^half of 2023. Net depreciation and amortization on tangible and intangible assets increases by €25 million to €85 million in the first ^half of 2024, mainly due to the amortization of intangible assets recognized in the context of the acquisitions of PLI and ZEbet / ZEturf during 2023 for €24 million.

Thus, the current EBITDA margin rate stands at 25.9% in the first ^half of 2024 compared to 23.3% in the first ^half of 2023.

Other non-recurring operating income and expenses amounted to -21 million euros compared to -14 million euros in the first ^half of 2023. They mainly include costs related to external growth operations and the impact of the revaluation of Sporting Group's B2B assets, currently being sold.

The operating result for the first ^half of 2024 thus comes to 265 million euros, an increase of +17.4% compared to that of the first ^half of 2023.

The high level of financial results (+23 million euros in the first ^half of 2024 compared to +19 million euros in the first ^half of 2023) reflects a still high level of interest rates.

The Group's tax charge amounts to 78 million euros, representing an effective tax rate of 26.9% for the first ^half of 2024, stable compared to the first ^{half of} 2023.

The consolidated net result for the first ^half of 2024 thus amounts to 213 million euros, an increase of +17.5% compared to the first ^half of 2023.

Adjusted net income of 235 million euros, up +28.3% compared to 183 million euros in the first ^half of 2023

To reflect the Group's actual economic performance and enable its monitoring and comparability with that of its competitors, FDJ is establishing a new indicator from the publication of the 2024 half-yearly accounts.

The Group has decided to restate the following from the consolidated net result:

• Depreciation of intangible and tangible assets, recognized or revalued when allocating the acquisition price of business combinations;
• The effects, without impact on cash flow, linked to the exchange rate hedging of the acquisition of the Kindred Group, recorded in other non-current operating expenses;
• And the variations in deferred taxes resulting from these elements.

Thus, the adjusted net profit for the first ^half of 2024 amounts to 235 million euros, an increase of +28.3% compared to 183 million euros for the first ^half of 2023.

Net cash surplus of 616 million euros at the end of June 2024

One of the indicators representing the Group's cash level is the net cash surplus (NCS) ^[6] .

As of June 30, 2024, the ENT stands at 616 million euros. Its change compared to the 671 million euros of December 31, 2023 is mainly explained by:

• With a free cash flow of 346 million euros, after taking into account a surplus in working capital of 60 million euros and tangible, intangible and financial investments of 76 million euros;
• Partly offset by 329 million euros in dividends for the 2023 financial year and 59 million euros in tax.

For information, the level of net cash surplus at the end of June cannot be extrapolated to the end of December because there are significant calendar effects on the settlement of public levies, in particular an advance payment on public levies in December.

Outlook 2024

In view of the performance of the first ^half of the year and taking into account the consolidation of the ZEturf group and PLI at the end of 2023, respectively from September 29 and November 3, FDJ reiterates its 2024 objectives of an increase of around +8% in the Group's total turnover, and around +5% for that of gaming activities in France, with a current EBITDA margin of around 24.5%.

The FDJ Board of Directors met on July 25, 2024 and examined the consolidated half-yearly accounts closed on June 30, 2024, which were prepared under its responsibility.

The limited review procedures on the half-yearly accounts have been carried out. The limited review report of the statutory auditors is in the process of being issued.

The condensed half-yearly consolidated accounts and a financial presentation are available on the FDJ group website:

• https://www.groupefdj.com/publications-et-resultats/

Next financial communication

FDJ will publish its turnover at the end of September on Thursday, October 17, 2024 after the stock market closes.

^[1] Excluding the contribution of PLI and ZEturf in 2024, and of Sporting's B2C in 2023

^[2] Lottery and sports betting under exclusive rights and online betting and gaming in competition.

^[3] See note ** on the following page.

⁴ FDJ has estimated the combined turnover and EBITDA for the financial year 2023 and for the first half of 2024 in order to illustrate the significant effects that the acquisition of Kindred would have had on the FDJ Group if it had taken place on January 1, 2023 and January 1, 2024 respectively ^and on the basis of the scope that would actually be retained by FDJ.

This scope was announced on January 22, 2024 with the planned exit of Norway and other .com sites, unless there is a clear opportunity for a local license (for example, in Finland where a bill aims to set up a licensing system for online betting, online slots and casino games, by early 2027). In addition, Kindred announced its gradual exit from the US market, which is finalized at the end of the first ^half of 2024. In the absence of financial information published by Kindred on the markets in the scope that the Group has announced it will not retain, FDJ has estimated the revenue and EBITDA achieved by Kindred on this scope for the financial year 2023 and for the first ^half  of 2024 without taking into account potential synergies and exit costs. The information has been prepared on the basis of the accounts published by Kindred under IFRS standards and by harmonizing the presentation of turnover with that of the FDJ group (i.e. the sum of net gaming revenue and revenue from other activities). The average EUR/GBP rate used is 0.865675 for 2023 and 0.854647 for the first ^half of 2024.

⁵ At the end of June 2024, over 12 rolling months

[6] It corresponds to non-current financial assets, current financial assets and cash and cash equivalents, net of non-current financial liabilities and current financial liabilities, reduced by: deposits and guarantees given, current and non-current; cash subject to restrictions; amounts allocated exclusively to winners of the Euromillions game; non-consolidated securities, mainly composed of shares in venture capital funds (FDJ Ventures).