FDJ reveals €200m Covid-19 hit
French national lottery operator ignites Covid-19 action plan to achieve €80m in 2020 cost savings
French lottery operator La Française des Jeux (FDJ) has reported a €200m (£180m) revenue drop during the two months of the country’s Covid-19 lockdown.
The firm revealed the news in an update to shareholders, confirming a €100m (£90m) hit to its company EBITDA, driven by a drop of nearly 60% in stakes over the period.
To deal with the effect of Covid-19 on operations, FDJ has commenced an action plan to save €80m (£72m), or 10% of its annual fixed costs, over the 2020 financial year.
Results of this plan will be revealed at a combined general meeting of shareholders later today.
FDJ also confirmed it has €800m (£720m) in short-term cash available within the business at the end of May.
Almost all FDJ retail points of sale have reopened as part of a gradual resumption of activity following the end of the French lockdown.
The operator has also been actively marketing its Amigo lottery game since 8 June.
In April, FDJ secured a €380m syndicated loan to finance its new 25-year rights deal on French lottery games and sports betting.
Earlier this month, ARJEL confirmed French market GGR had risen by 22% during Q1, despite the impact of Covid-19 on the country’s gambling industry.
Double-digit GGR rises were reported in all verticals, including a 39% year-on-year increase in sports betting despite the impact of the pandemic on the quarter.