In its 2024 full-year results posted today (6 March), FDJ reported revenue of €3.07 billion ($3.3 billion/£2.56 billion), up 16.9% year-on-year. The group’s EBITDA for the year was up 20.6% to €792 million.
This was the first full year for earnings including the recently absorbed Kindred business, which FDJ acquired last year. The €2.45 billion deal was completed in October. Kindred’s performance is not broken down as a separate business unit within the results.
FDJ noted that increased taxes in France resulted in it paying €45 million in tax revenue for the year. It said the impact of higher taxes will increase in the coming years, with its tax contribution expected to hit €100 million in its 2027 financial year. Over half of this will relate to its online betting and gaming business which comprises Kindred.
This year the company will see its French tax bill hit almost €45 million and its Netherlands contribution come to €10 million. This will impact its overall group revenue which is targeted at €3.8 billion in 2025, with a recurring EBITDA margin of over 24%.
In France, operators are due to pay higher tax rates that will come into force in July, including increased social security contributions. These were set out in a finance bill included in France’s 2025 budget.
France’s gambling tax rates are based on GGR and differ between verticals. Operators then pay a separate social security contribution, which will increase across all verticals.
Breaking down the business segments
Revenue for the French lottery and retail sports betting business totalled €2.5 billion during the period, an increase of 5.8%.
This was further broken down by lottery (€2.05 billion) and retail sports betting (€453 million). This segment benefitted from various big sports events during the year, including the UEFA Euros tournament during the summer.
The group provided a revenue guidance for 2025 of €3.6 billion. However, it said it expects the coming year will be impacted by increased taxes and tightened regulation in the Netherlands and UK&I markets.
Online betting and gaming net revenue hit €1.03 billion. Casino gaming represented 51% of that total and sports betting 41%.
Meanwhile, international lottery revenue was €190.5 million and the Nivio payments business recorded revenue of €64.4 million during the year. Nivio provides an app where users can pay for utilities, tax bills, tolls and other services.
FDJ benefitted last year from a cost-cutting programme initiated at the end of 2023. This included its withdrawal from the North American market This business unit’s recurring EBITDA stood at €293.2 million, representing 28.5% of revenue.
FDJ reshuffles management and rebrands to reflect new business
The French operator unveiled a new management team and rebranding alongside its results.
This rebrand to FDJ United is meant to reflect the company’s international development. A statement released today said: “This new name reflects the group’s European scale while paying tribute to its roots, its history and what makes it unique. The new FDJ United name reaffirms the group’s historic name, FDJ, and combines it with United reflecting its international development.”
It added: “FDJ United is the group’s new corporate brand, with a new brand signature, ‘Playful. Play fair. Play forward’. The name covers all the group’s businesses across all the countries in which it operates.”
FDJ will remain the group’s trade name in France, however, due to its long and rich brand history in the country.
Alongside the rebrand the company announced a reshuffle of its executive committee. Kindred CEO Nils Andén was appointed as chief online betting and gaming officer for the wider group, while Patrick Buffard moved from his role as French lottery general manager to chief French lottery and retail sports betting officer.
FDJ CEO Stéphane Pallez, deputy CEO Charles Lantieri and CFO Pascal Chaffard remain in their current roles.
The group has also rearranged its business units. A French lottery and retail sports betting arm will oversee lottery games at points of sale and online and retail sports betting. Online betting and gaming will be responsible for sports and horse betting, poker and online casino gaming.
Original article: https://igamingbusiness.com/finance/full-year-results/fdj-2024-double-digit-growth-rebrands-united/
