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La Française des Jeux (FDJ), France's leading gaming operator, has announced its 2020 results.
After the significant impact of the health crisis on the first half of the year, in which stakes fell by 18%, the gradual recovery in the summer was confirmed in the second half, with an increase of 3%. In the reporting year, the FDJ recorded a share of EUR 16 billion, which corresponds to a decrease of 7% compared to 2019.
Loto and Euromillions showed their resistance with an increase in stakes of 6% to EUR 3.2 billion. Amigo has been hard hit, particularly from its suspension during the initial lockdown, which saw a decline of more than 30%. The stakes in instant games, which fell by 6% to EUR 7.7 billion, were also affected by the effects of the health crisis on sales figures at the point of sale. In total, lottery stakes fell by 6% to EUR 12.7 billion.
The decline in sports betting was limited to 10% to EUR 3.2 billion over the course of the year, thanks to a growth of 20% in the second half of the year compared to the second half of 2019 after a decline of 40% in the first half of the year.
Shares in the point-of-sale network were stable in the second half of the year, after declining more than 20% in the first half. The FDJ supported and supported its sales network with almost 30,000 sales outlets.
Online wagers continued their strong momentum, with further annual growth of nearly 40% driven by the digital lottery. They rose by more than 60% to over EUR 1.1 billion.
Sales fell by 6% to € 1,920 million. EBITDA amounted to € 427 million, which corresponds to a margin of 22.2% of sales. The EBITDA was maintained thanks to the implementation of a savings plan of more than € 80 million.
The net profit was € 214 million. This compares to an adjusted net profit of € 202 million for 2019 after taxes, adjusted for the new tax and regulatory framework that will apply from the beginning of 2020, the effects of exceptionally long lottery cycles, the annual results of the Sporting Group and the expenses related to the IPO the group.
In 2020, the group strengthened its financial structure thanks to an EBITDA-cash conversion ratio of over 80%, which at the end of the year was over € 1 billion.
The FDJ's Board of Directors will propose to the Annual General Meeting on June 16, 2021 the payment of a dividend of 80% of the Group's profit, as the Group had promised at the time of its IPO. The dividend of € 0.90 per share will be paid on June 23, 2021.
“2020 was an unprecedented and contrasting year in which the FDJ demonstrated its resilience and solidarity. The health crisis had a particularly strong impact on our business in the first half of the year. However, the recovery in the second half of the year combined with the Group's responsiveness and the relevant digital strategy enabled us to maintain our performance and annual results. I would like to thank our employees for their dedication and renew our support for our network of retailers, some of which have been badly affected. At the beginning of 2021, the group remains confident, despite the ongoing uncertainties, that it can expect sustainable growth in line with its raison d'etre, ”said Stéphane Pallez, Chairman and Chief Executive Officer of the FDJ Group.