Lotto OnlineNewsLa Française des Jeux (FDJ) Reports Strong Start to 2024 with a 7% Revenue Uptick and Advances in Kindred Acquisition
In a striking display of resilience and growth, La Française des Jeux (FDJ), France's premier gaming operator, has kicked off the year with a robust performance in the first quarter of 2024. The company not only saw a significant rise in revenues but also made notable strides in its acquisition of Kindred, setting a confident pace for its 2024 objectives.
Key Takeaways:
FDJ's Chairwoman and CEO, Stéphane Pallez, expressed optimism about the year's start, attributing the success to the company's expansive network of over 29,000 retailers and the burgeoning online gaming sector. The planned acquisition of Kindred further underscores FDJ's ambition to expand its footprint in the gaming industry.
FDJ's Q1 revenue reflects a strong market presence and strategic diversification, with gaming revenue in France up by 3.1% to 645 million euros. The lottery segment saw a modest increase, buoyed by the popularity of instant games and the launch of innovative products like Ticket d’Or. Despite a challenging comparison base from Q1 2023, sports betting and online gaming also witnessed growth, thanks to the enduring appeal of ParionsSport En Ligne and strategic acquisitions such as ZEturf.
The online gaming segment, in particular, reported a more than 30% revenue increase, underscoring the digital transformation's impact on the gaming industry. This segment now accounts for a significant portion of FDJ's gaming revenue, highlighting the company's successful adaptation to changing consumer behaviors.
The tender offer for Kindred, a key development in FDJ's expansion strategy, is proceeding as planned, with the completion hinging on regulatory approvals and the acquisition of a pivotal share of Kindred's capital. FDJ's recent acquisition of a 1.12% stake in Kindred, following a purchase from Veralda, reflects a strategic move to consolidate its position in the global gaming market.
With its Annual General Meeting scheduled for April 25, 2024, FDJ is poised to propose a dividend of 1.78 euros per share for the 2023 financial year, signaling confidence in its financial health and commitment to shareholder value. The company also plans to release its half-year results in July, which will likely provide further insights into its operational success and strategic initiatives.
FDJ's performance in the first quarter of 2024 is a testament to its resilient business model and strategic foresight. As the company continues to navigate the evolving gaming landscape and pursue ambitious acquisitions like Kindred, it remains a key player to watch in the global gaming industry.
