FDJ has reported net profit of €425m as the firm expanded its recreational gaming model and continued commitments to reduce the share of gross gaming revenue generated by high-risk players.
Providing its full year update for 2023, the group revealed strong growth across its online games with an 18.8 per cent increase in net gaming revenue (NGR), as it was bolstered by the integration of Premier Lotteries Ireland and ZEturf in line with expectations.
It comes as the group doubles down on ambitions for European growth as it embarked on a potential acquisition of Kindred at the beginning of this year. FDJ detailed that the tender offer will open on 20 February, 2024 for a period of nine months.
Stéphane Pallez, Chairwoman and CEO of the FDJ Group, said: “FDJ delivered solid growth and results this year. The Group reached in 2023 a major milestone in the implementation of its strategy with the completion of the acquisition of Premier Lotteries Ireland and ZEturf. The proposed acquisition of Kindred, announced at the end of January, will enable the creation of a European champion and significant value creation for the benefit of all stakeholders, in line with our model combining performance and responsibility.”
Igaming growth for the firm was accelerated by the enhancement of its lottery offering as the group tapped into acquisitions and rights tenders in order to bolster growth.
FDJ produced an overhaul of the ‘game formula’ of its AMIGO point-of-sales network as ordered by the French gambling regulator Autorité Nationale des Jeux (ANJ).
The group detailed that ‘the revision notably concerns the reduction in the number of draws (with a suspension of 15 minutes per hour between 6:00 and 14:00) and the maximum amount per bet (€8 vs. €20).”
The firm also detailed an increased focus on social responsibility, providing €10m over the 2023-2027 period to support the underage gambling prevention programme targeted at young people and implemented by the ARPEJ association.
It comes amidst a transitional period for the French gambling space, as regulatory frameworks in the region continue to evolve.
A recent letter from some of the key players within France’s casino sector sent to the new Prime Minister Gabriel Attal warned against the efforts of Française des Jeux (FDJ) for its aggressive expansionary policies and the “monopolistic advantages”.
The claims were dismissed by FDJ, which said they were “unfounded”, and Les Echos noted that the casinos’ move could also be seen within the context of a study on the reform of gaming clubs (cercles de jeux) in Paris set to be published shortly.
