FDJ revenue jumps 17.5% in 2021 as Covid-19 pressures ease

Francais Des Jeux (FDJ) has reported a 17.5% year-on-year(YoY) increase in group revenue during 2021, with revenue topping €2.25bn (£1.88bn).

Releasing its update for the last 12 months, the French national lottery operator revealed a YoY increase of 18.9% on stake levels, with €19bn in stakes being received during 2021.

Recurring operating profits and net profits also rose by double digits during 2021, to €393m, a 21% increase, while net profits which rose 37.6% YoY to €294m.

FDJ’s EBITDA increased 22.3% YoY to €522m in 2021, corresponding to an EBITDA margin of 23.1%.

FDJ’s fortunes were buoyed by a return to normality in France following the Covid-19 pandemic, with 30,000 points of sale being reopened in June as part of French relaxation of pandemic countermeasures.

Stakes across FDJ’s sales network rose by 5%, with the firm citing “strong momentum” in its online operations, which reported a 42% rise in stakes vs 2020. Online stakes as a percentage of total FDJ stakes accounted for 11%, an increase from 6% reported in 2019, with stake levels rising 37% YoY.

“This performance is still attributable mainly to the increase in the number of players, which exceeded 4 million at the year-end. More than two years ahead of pre-health crisis expectations, online lottery stakes now amount to nearly €1.6 billion and account for nearly 11% of total lottery betting, double the 2019 level,” FDJ said.

FDJ has updated its 2022 financial targets to show an estimated revenue growth spike of 5% and an expected EBITDA margin above 23.5%.

At a longer term level, FDJ has also revised its 2025 targets, which were set at the time of the December 2019  initial public offering (IPO).

These targets now include annual revenue growth of between 4% and 5% from 2021 to 2025, a doubling of the share of online stakes compared with 2020 to over 20% of total stakes, an EBITDA margin above 25% and a payout ratio between 80% and 90% of net profit from 2022.

FDJ has also confirmed the strengthening of its societal commitments including its economic and social contributions to the French state. Highlights of this include an intention to contribute €6.2bn to the French gross domestic product (GBP) in 2021, as well as a commitment to maintaining and creating at least 54,800 jobs in France.

Reflecting on FDJ’s progress during the last 12 months, CEO and chairwoman Stéphane Pallez highlighted 2021 as a return to FDJ’s “pre-crisis growth trajectory” in all its business activities.

“The group’s 2021 results are significantly higher than those recorded in 2019, thanks to the acceleration online and the growth within our network of points of sale,” Pallez explained.

“This performance demonstrates the relevance of our strategy and leads us to revise upwards the 2025 objectives communicated at the time of the Group’s IPO, both in terms of growth and EBITDA margin.

“At the same time, we are continuing our societal commitments, which have already been significantly strengthened since the start of the health crisis. FDJ will carry on combining financial performance with extra-financial commitments for the benefit of all of its stakeholders,” she added.

FDJ announced on Tuesday that it has allocated a budget of €25m to its Corporate Foundation for the next five-year cycle.