FDJ revenues up 11% in the first half of the year thanks to strategic acquisitions and growth in the digital segment

French National Lottery Operator French Jeux (FDJ) reported revenue growth in the first half of the year, driven by recent acquisitions and digital growth. The company recorded revenue of 1.4 billion euros (1.51 billion dollars) during this period an increase of 11% compared to the previous year.

Acquisitions Premier Lotteries Ireland (PLI) and horse racing bookmaker Zeturr played a key role in this growth. Acquisitions boosted FDJ’s digital revenue, which grew 40% to €201 million ($217 million). The division now accounts for 15% of FDJ’s total revenue.

Sports betting and online poker were also up, increasing by 14.5% to EUR 294 million (USD 318.2 million), with the ex supported by favorable sports resultsMeanwhile, group EBITDA rose by 23% to €370 million ($317.6 million).

FDJ’s lottery division saw a 5 percent increase in revenue to €958 million ($1 billion) and remains by far the FDJ’s main source of revenue. Growth was driven by new instant win games and popular draws such as EuroDreams and EuroJackpot. In addition, the Amigo retail network returned to full technical capacity in early June, which contributed to the lottery results.

The new international and payments services unit also contributed to the total, with revenue of 129 million euros (139.37 million dollars).partly due to the launch of the Nirio payment solution for paying motorway tolls.

Stéphane Pallez, President and CEO of FDJ, expressed optimism about the company’s futureespecially in the context of the upcoming acquisition of Swedish iGaming operator Kindred, the approval of which is expected in November.

Pallez stated:We hope that in the near future we will be able to finalize the acquisition of Kindred.which represents an important new step in the group’s development, both internationally and in our sports betting and online gaming businesses, to the benefit of all our stakeholders.”

“The second quarter confirmed the positive trend observed since the beginning of the year thanks to our network of points of sale and the very strong momentum of digital games, which now represent 15% of group revenues. This solid performance confirms our annual targets.”

FDJ’s lottery sales costs rose 1.8% to €536 million ($579 million)while the cost of selling sports betting and online gaming rose 1.5% to €125 million ($135 million). Central costs remained stable at €128 million ($138.29 million).

Recurring operating profit for the first half of the year was EUR 285 million (USD 307.91 million), up 19.9% ​​year-on-year. Irregular operating income and expenses amounted to €21 million ($22.69 million), mainly due to acquisition costs and the revaluation of the B2B Sporting Group assets, which are in the process of being sold. This resulted in an operating profit of €265 million ($286.31 million), up 17.4% year-on-year.

FDJ recorded €23 million ($24.85 million) in net financial income, reflecting the high level of interest rates, while tax payments totaled €78 million ($84.27 million)As a result, consolidated net profit reached EUR 213 million (USD 230 million), up 17.5% year-on-year. Adjusted net profit amounted to EUR 235 million (USD 253.89 million), up 28.3% year-on-year.