FDJ records FY22 revenue increase of 9% thanks to lottery and World Cup
French firm posts increases in EBITDA and GGR as return of retail and strong interest in H2 sporting calendar pays dividends
FDJ has recorded a 9% year-on-year (YoY) rise in full-year 2022 revenue to €2.46bn as significant growth in its online and lottery divisions drove growth at the French operator.
FDJ pointed to post-Covid recovery during H1 as a benefit to the business, while H2 saw group revenue uptick by 6% YoY, which FDJ said was in line with the firm’s historical growth trajectory.
Breaking the group’s revenue down by verticals, lottery was a key driver after returning €1.92bn in revenue with the 11% YoY rise due to the higher jackpots and the return to normality of retail sales.
Sports betting posted €467m in revenue with the modest 1% YoY rise due to tough comparisons with H1 2021 due to the delayed Euro 2020 championship.
However, the early start of top European domestic football leagues, and the first-ever winter World Cup, drove the arm during H2.
In fact, the World Cup contributed 6% of FDJ’s total annual revenue as the French national team made it to the final in Qatar.
Additionally, full-year 2022 stakes amounted to €20.2bn, an increase of 8.7% YoY.
FDJ added that the player payout ratio stood at 68.4% for the year after the strong performance of the France team in the World Cup contributed to player winnings amounting to €14.1bn. Grossing gaming revenue amounted to €6.5bn.
Elsewhere, recurring EBITDA grew 13% YoY to €590m with a corresponding margin of 24%, up from 23.1% in 2021.
Recurring operating profit for the company also increased by 16.8% to €459.8m while net profit jumped 4.7% to €308m.
Stéphane Pallez, chairwoman and CEO of FDJ Group, said: “FDJ recorded very strong results for the year as a whole, marked by an increase in all of our business activities, supported by significant growth in our 30,000 points of sale and sustained momentum online.
“This good performance benefits all our stakeholders, in particular our employees, our retailers and our shareholders,” she added.
For 2023, FDJ is targeting revenue growth of between 4% and 5% with an EBITDA margin of 24%.
At the time of writing, FDJ’s share price had fallen by 4.7% in early trading to €36.67.