- 2021 revenue of €2.3 billion, up 10% compared with 20191,
based on an 11%1 increase in stakes to €19 billion
- - Growth in offline stakes (+5% vs 2019) and strong momentum in
online stakes (+42% vs 2020)
- EBITDA of €522 million, or a margin of 23.1%, up from 22.2%
in 2020, and net profit of €294 million
- - Dividend of €1.24 per share, or 80% of consolidated net
profit, to be proposed to the General Meeting of 26 April 2022
- Strengthening of societal commitments and significant
economic and social contribution
- - 10% of the Group’s television advertising purchases devoted
to responsible gaming;
- - €25 million endowment to the FDJ Corporate Foundation for its
programme over the 2023-2027 period, a 28% increase vs
2018-2022
- - Implementation of the “Rebond” fund to support local
businesses, with a €15 million contribution from FDJ
- - €6.2 billion contribution to French GDP by the Group in 2021;
54,800 jobs maintained or created in France2
- 2022 targets: revenue growth of nearly 5% and EBITDA margin
above 23.5%
- Upward revision of the 2025 targets set at the time of the
IPO3
- - Average 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
- - EBITDA margin above 25%
- - Payout ratio between 80% and 90% of net profit from 2022
Regulatory News:
La Française des Jeux (FDJ) (Paris:FDJ), France’s leading gaming
operator, announces its 2021 results, its outlook for 2022 and its
2025 targets.
Stéphane Pallez, Chairwoman and CEO of FDJ, said: “The
year 2021 marks FDJ's return to its pre-crisis growth trajectory
for all its 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. 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.”
Key figures (in € million)
2021
2020
Change
2019 adjusted
Change
Stakes
18,976
15,959
+18.9%
17,131
+10.8%
Revenue*
2,256
1,920
+17.5%
2,048
+10.1%
Recurring operating
profit
393
325
+21.1%
326
+20.6%
Net profit
294
214
+37.6%
202
+45.7%
Dividend per share (€)
1.24
0.90
+37.8%
0.45
X2.8
EBITDA**
522
427
+22.3%
422
+23.6%
EBITDA/revenue
23.1%
22.2%
-
20.6%
-
* Revenue: net gaming revenue and revenue from other activities
** EBITDA: recurring operating profit adjusted for depreciation and
amortisation
In view of the highly contrasted impact of the health crisis
and measures to combat Covid-19 on FDJ’s business in 2020 and 2021,
changes in activity (stakes and revenue) are mainly given in
relation to 2019, unless otherwise stated, and those relating to
expenses and results in relation to 2020. The 2019 data have been
adjusted, net of tax, for the new tax and regulatory framework
effective from the beginning of 2020, the impact of exceptional
long lottery cycles4, expenses relating to the Group’s IPO, and
consolidating Sporting Group on a full-year basis.
2021 highlights
- Return of the environment to normal
- The entire network of more than 30,000 FDJ points of sale open
from the start of June;
- A standard calendar, for both sporting competitions and lottery
marketing and promotional events.
- Business growth across all product ranges
- Strong growth for Loto and Euromillions, driven notably by
record jackpots and numerous long cycles;
- Success for new instant games available at points of sale, such
as “La grosse roue” and “A prendre ou à laisser”, the third
phygital game;
- Growth in Parions Sport Point de Vente stakes thanks to the
continued enrichment of the offer and digitalisation, which now
accounts for nearly 85% of stakes. Parions Sport En Ligne continues
to record strong growth, reflecting the attractiveness of its
offer, amid a fast-developing market.
- Business growth across all sales channels
- Stakes in the sales network were up 5%. Strong momentum
continued in the digital channel, with stakes up 42% vs 2020.
Online stakes accordingly represent more than 11% of total stakes,
a very substantial increase from 6% in 2019.
-
In lotteries alone, online stakes were up 37% vs 2020, after
growth of 55% vs 2019 in 2020. 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.
- Acceleration of adjacent activities
- Internationally, a B2B offer was successfully launched in North
America. It involves the rollout of a comprehensive service to
manage a point-of-sale and online sports betting offering in two
Canadian provinces, Proline+ in Ontario and PlayAlberta in
Alberta;
- The rollout of the point-of-sale payment service for public
treasury bills (tax collection, fine collection, utility bills,
etc.) continued. This service is now available in more than 12,000
points of sale, up from 9,000 at the end of 2020, and has recorded
2 million transactions since its launch. Moreover, the French
Prudential Control and Resolution Authority (ACPR), which is
attached to the Banque de France, has given FDJ’s Payment and
Services activity accreditation as a payment institution, enabling
it to develop a collection activity on behalf of third parties in
addition to the French Public Treasury (DGFiP).
- CSR commitments assessed and strengthened
In 2021, FDJ strengthened its social commitments and maintained
a very high level of non-financial performance, with:
- A strengthened commitment to responsible gaming and the fight
against underage and excessive gambling, with:
- 10% of the Group’s total advertising purchases to be devoted to
this commitment from 2022, compared with 10% of the television
advertising budget previously;
- Intensification of the action plan during UEFA Euro 2020, with
TV campaigns to prevent underage gambling and digital video to
raise awareness about excessive gambling;
- A €25 million endowment to the FDJ Corporate Foundation for its
2023-2027 programme, a 28% increase vs the previous (2018-2022)
endowment;
- The implementation of the “Rebond” fund, a fund to support
local businesses in vulnerable areas, to which FDJ has contributed
nearly €15 million;
- A €2 million donation from the FDJ Corporate Foundation to
support 15,000 young people in difficulty. This brings FDJ Group’s
total exceptional donations to various associations supporting
vulnerable people to nearly €5 million since the beginning of the
health crisis;
- Moody’s ESG A1+ rating maintained and a 100/100 rating obtained
on the “Pénicaud” gender equality index.
Activity and results in
2021
In 2021, the Group’s environment normalised, with the entire
network of 30,000 FDJ points of sale open from the beginning of
June and a standard calendar, for both sporting competitions, and
lottery marketing and promotional events. The good business
momentum recorded in the first half of the year was largely
confirmed in the second half.
- Revenue of €2,256 million, up 10.1%,
based on stakes of €18,976 million, up 10.8% vs
2019
Stakes were up across all sales channels:
- In the point-of-sale network, with an increase of 5%;
- Online, with a further strong increase of 42% in stakes vs
2020, after an increase of 40% in 2020 vs 2019. Online stakes
accordingly represent more than 11% of total stakes, a very
substantial increase from 6% in 2019.
Prizes amounted to €12,971 million (+11.1%), representing a
player payout ratio (PPO) of 68.4%, compared with 68.0% in 2020 and
68.1% in 2019. As such, gross gaming revenue (GGR, i.e. stakes less
prizes won) amounted to €6,004 million (+10.0%).
Net gaming revenue (NGR, i.e. GGR less public levies on games)
constitutes the FDJ Group’s remuneration from gaming. After €3,816
million in public levies (+10.1%), NGR amounted to €2,202 million
(+9.6%).
After taking into account income from other activities, the
Group’s revenue totalled €2,256 million, up 10.1% vs 2019 and 17.5%
vs 2020.
- Recurring operating profit of €393
million and EBITDA of €522 million, representing an EBITDA margin
of 23.1%, an improvement on the margin of 22.2% in
2020
Cost of sales amounted to €1,233 million (+14.3%). This includes
€901 million (+16.7%) of PoS commissions, which are correlated with
stakes recorded in the network.
Marketing and communication costs include advertising and
product development costs, as well as IT development and operating
costs for games and services. They amounted to €415 million
(+25.8%), driven by the increase in the game offering amidst very
strong growth in digital channels, as well as by communication
campaigns on lottery games, sports betting and the Group’s
image.
Administrative and general expenses mainly include personnel and
operating expenses for central functions, as well as building and
IT infrastructure costs. They amounted to €199 million
(+15.5%).
As a reminder, certain operating expenses, in particular
advertising and promotional expenses and running expenses, were
reduced in 2020 as part of the savings plan of more than €80
million implemented at the outset of the health crisis.
The Group’s recurring operating profit accordingly amounted to
€393 million, an increase of 21.1%. The €27 million increase in net
depreciation and amortisation expense to €129 million is
attributable chiefly to the shortening of depreciation periods for
certain development costs capitalised in an environment of ongoing
technological innovation and the start of the amortisation of the
partnership contract for the Paris 2024 Olympic and Paralympic
Games in January 2021.
EBITDA, recurring operating profit adjusted for depreciation and
amortisation, amounted to €522 million, an increase of 22.3%.
- Net profit up 37.7% at €294
million
Non-recurring expenses eased to €1.5 million, compared with
expenses of €32.0 million in 2020, mainly reflecting:
- A reversal of the unused provision following the final ruling
of the Court of Cassation in favour of FDJ in the proceedings
brought by broker-agents;
- Impairments related to Sporting Group.
In 2020, they mainly included asset impairments and
restructuring expenses related to the discontinuation of Sporting
Group’s proprietary trading business.
Operating profit amounted to €392 million (+33.8%).
The increase in financial income (€21 million, vs €5 million in
2020) is attributable chiefly to favourable trends in the financial
markets and the performance of the innovation funds in which FDJ
has invested to support the development of start-ups working on
subjects of interest and activities close to FDJ’s core
business.
Tax expense amounted to €122 million, representing an effective
tax rate of 29.7%.
Consolidated net profit accordingly amounted to €294
million.
The Group’s organisation is based on three operating segments:
two Business Units (BUs), Lottery and Sports Betting, and the
adjacent activities which include International, Payment and
Services, and Entertainment, with cross-functional support
functions (notably customer, distribution and information systems),
and the holding company, which mainly includes overheads.
The contribution margin is one of the key performance indicators
for these segments. It is the difference between segment revenue,
cost of sales (including PoS commissions) and
marketing and communication expenses (excluding depreciation and
amortisation) allocated to them.
The Lottery performed well, with revenue of €1,728 million, an
increase of 8.8% vs 2019 and 15.6% vs 2020. The 8.7% increase in
stakes to €14,726 million is attributable to both instant games and
draw games:
- Instant games recorded stakes of €8,982 million, up 9.5%. This
momentum can be attributed notably to the successful management of
the game offer, including the success of launches in points of
sale, namely “La grosse roue”, a game priced at 3 euros, or “A
prendre à laisser”, priced at 5 euros and the third phygital game
launched since 2019;
- Draw games recorded stakes of €5,744 million, up 7.5%. This
growth was driven strongly by Loto and Euromillions, which both saw
record jackpots and numerous long cycles in 2021;
- Growth was strong in online lottery stakes (+37% vs 2020 after
+55% in 2020 vs 2019), which totalled nearly €1.6 billion, i.e.
more than 10% of lottery stakes. This performance is attributable
mainly to the increase in the player base, which exceeded 4 million
at the year-end.
The Lottery BU’s contribution was €621 million, representing a
contribution margin of 35.9%, up from 33.6% in 2020.
- Cost of revenue amounted to €949 million (+12%), mainly
reflecting PoS commissions, whose growth mirrored that of network
stakes over the year.
- Marketing and communication expenses totalled €159 million, an
increase of 9.7%, with the group maintaining substantial
development of the game offer, particularly digital.
For Sports Betting, the year benefited from the return to a
“normal” events calendar, whereas activity had been significantly
affected by the health crisis in the first half of 2020, and from
the UEFA Euro 2020 football tournament from 11 June to 11 July
2021.
Revenue amounted to €464 million, an increase of 14.1% vs 2019
and 24.7% vs 2020, based on stakes up 19.2% at €4,216 million. The
player payout ratio was 77.1%, up from 75.9% in 2020.
The Sports Betting contribution was €121 million, representing a
margin of 26.1%, reflecting the increase in the player payout ratio
(PPO) combined with an increase in operating expenses, which had
been reduced in 2020 as part of the savings plan.
- Cost of sales amounted to €234 million. It mainly reflects PoS
commissions, whose growth mirrored that of network stakes over the
year.
- Marketing and communication expenses totalled €109 million,
reflecting the development of the offer, as well as marketing and
communication expenses related to the year’s sporting events, in
particular UEFA Euro 2020, combined with responsible gaming
campaigns.
Adjacent activities (International, Payment & Services and
Entertainment) recorded revenue of €63 million. The increase of €11
million vs 2020 is attributable both to the International business
and to the development of the point-of-sale payments business
launched in 2020. These activities’ contribution was -€2 million, a
slight improvement of €1 million on that of 2020.
Robust financial structure and
available cash close to €1 billion
The Group’s investments totalled €76 million, a level very close
to the €80 million recorded in 2020, excluding the securing of
exclusive operating rights. They mainly relate to the development
of information and back-office systems as well as point-of-sale
gaming terminals.
Normalised change in working capital surplus from operations
(restated for calendar impacts and unclaimed prizes) was €49
million. As such, on the basis of EBITDA of €522 million, free cash
flow5 totalled €495 million, up from €386 million in 2020, with an
EBITDA to cash conversion rate of 95%.
At the end of December 2021:
- The Group’s equity amounted to €829 million on a balance sheet
total of €3,188 million;
- The net cash surplus, one of the indicators of the Group’s net
cash position, was €916 million, up from €577 million at the end of
2020, and FDJ had available cash1 of nearly €1 billion.
A significant economic and social
contribution from the Group
For the sixth consecutive year, Bureau d’information et de
prévision économique (BDO-Bipe) has assessed the FDJ Group’s
economic and social contribution in France.
In 2021, FDJ’s contribution to national wealth was €6.2 billion,
or 0.25% of gross domestic product (GDP).
In terms of employment, the FDJ Group’s activities created or
maintained 54,800 jobs in France.
FDJ’s contribution is significant for:
- The French State,with a total contribution of more than
€4.1 billion to the State budget, including a €3.8 billion public
levies on games, a €227 million balance of player funds closed by
the Pacte law and 2020 unclaimed prizes and €35.2 million in
dividends;
- Local retail businesses, with €901 million paid to its
retailers. FDJ thus enabled the creation or perpetuation of 21,100
jobs in that network in 2021. FDJ has more than 30,000 points of
sale in more than 11,000 municipalities, making it France’s most
extensive local network;
- French sport, both professional and amateur, via the
action of the National Sports Agency (ANS) and the sports
partnerships established by FDJ;
- Endangered French national heritage. Thanks to the
Mission Patrimoine lottery games, nearly €28 million was donated by
the State to the French national heritage foundation for the 2021
edition;
- Social action and the remembrance contribution of its
founding veterans shareholders: the Union des blessés de la
face et de la tête (UBFT) and the Fédération nationale André
Maginot;
- The FDJ Corporate Foundation, which is committed to
promoting equal opportunity by supporting nearly a hundred projects
every year throughout France, with a budget of €19.5 million over
five years (2018-2022).
2022 targets
In 2022, based on a stable environment, the Group is aiming
for:
- Revenue growth of nearly 5%. Growth in online stakes is
expected to exceed 20%;
- An EBITDA margin of over 23.5%. In line with the Group’s
strategy, investments in the development of the games and services
offered to players will continue to grow faster than the
business;
- An EBITDA to free cash flow conversion rate always higher than
80%.
Upward revision of the Group’s 2025
targets
The FDJ Group’s 2020-2021 performance, in particular the
substantial acceleration of the growth of online lottery, confirms
the relevance of its strategy and has prompted it to revise up its
2025 targets, initially issued at the time of its IPO in late 2019.
These targets notably included:
- Average annual revenue growth of between 3% and 4%;
- A 2025 EBITDA margin of over 20%.
This revision is mainly attributable to the accelerated growth
of the digital stakes, which are expected to account for more than
20% of the Group’s total stakes in 2025 and double the 2020
level.
Point-of-sale activity is also expected to increase.
At the same time, the Group plans to maintain a high level of
investment to:
- Continue to develop the range of games and services;
- Ensure the rollout of its customer identification and knowledge
strategy;
- Continue to modernise and develop the attractiveness of its
network, notably by offering new payment services, which generate
additional footfall and revenue for points of sale, and by adopting
a new visual identity. The Group also plans to continue the
transformation of its commercial organisation, with full effect
expected in 2026.
Overall, by 2025, FDJ is aiming for:
- Average annual revenue growth of between 4% and 5% over the
2021-2025 period, with sports betting growing faster than lottery
and the development of adjacent activities;
- An EBITDA margin increasing steadily to over 25% by 2025;
- Cumulative investments maintained at €600 million over the
2020-2025 period;
- An EBITDA to free cash flow conversion rate of over 80% over
the 2022-2025 period;
- A payout ratio between 80% and 90% of the FDJ Group’s net
profit from 2022;
- The Group also aims not to exceed a financial debt ratio (net
financial debt to EBITDA) of 2, including external growth, over the
2022-2025 period.
Dividend
FDJ’s Board of Directors, at its meeting of Tuesday 15 February,
approved the Group’s 2021 financial statements. It will propose, to
the General Meeting of 26 April 2022, a dividend of 1.24 euro per
share to be paid on 4 May 2022.
Audit procedures have been carried out on the consolidated
financial statements. The certification report is in the process of
being issued.
A financial presentation is available on the FDJ Group website:
https://www.groupefdj.com/en/shareholders/financial-presentations.html
The 2021 consolidated accounts are available in French and
English on the FDJ Group website:
https://www.groupefdj.com/en/investors/financial-publications.html
Next financial release
The FDJ Group is to release its Q1 2022 revenue on Thursday 21
April after trading.
Forward-looking statements
This press release contains information on FDJ Group’s
objectives, as well as forward-looking statements. These statements
do not reflect historical data and must not be interpreted as
guarantees that the facts and data mentioned will occur. The
information contained herein is based on what the Group considers
to be reasonable data, assumptions and estimates. FDJ operates in a
competitive and rapidly changing environment. The Group is
therefore not in a position to anticipate all of the risks,
uncertainties or other factors likely to impact its activity, the
potential impact thereof on its activity, or even to what extent
the materialisation of a risk or a combination of risks could
present significantly different results from those mentioned in any
forward-looking statements. The information contained herein is
provided solely as at the date of the present press release. The
Group makes no commitment to update these forward-looking
statements or the assumptions on which they are based, aside from
the fulfilment of any legal and regulatory obligations incumbent
upon it. FDJ will disclose to the market any updates to information
provided that are likely to have a significant impact on its
activities, results, financial position or outlook, in accordance
with applicable regulations, and will comply with the ongoing
disclosure obligations applicable to all companies whose shares are
listed for trading on the regulated market of Euronext Paris.
About La Française des Jeux (FDJ Group)
France’s national lottery and leading gaming operator, the #2
lottery in Europe and #4 worldwide, FDJ offers secure, enjoyable
and responsible gaming to the general public in the form of lottery
games (draws and instant games) and sports betting (ParionsSport),
available from physical outlets and online. FDJ’s performance is
driven by a portfolio of iconic and recent brands, the #1 local
sales network in France, a growing market, recurring investment and
a strategy of innovation to make its offering and distribution more
attractive with an enhanced gaming experience.
FDJ Group is listed on the Euronext Paris regulated market
(Compartment A – FDJ.PA) and is included in indices such as the SBF
120, Euronext Vigeo 20, STOXX Europe 600, MSCI Europe and FTSE
Euro.
For further information, www.groupefdj.com
Twitter @FDJ Facebook FDJ Instagram @FDJ_officiel LinkedIn
@FDJ
FDJ Group | La Française des Jeux 3-7, quai du Point du Jour -
CS10177 92650 Boulogne-Billancourt Cedex www.groupefdj.com
APPENDICE
2019 data are adjusted, net of tax, for the new fiscal and
regulatory framework effective from the beginning of 2020, the
impact of exceptional long lottery cycles, Sporting Group’s
full-year results, and expenses related to the Group’s IPO.
In € million
31.12.2021
31.12.2020
Change 12.2021 vs
12.2020
31.12.2019 adjusted
Change 12.2021 vs 12.2019
adjusted
Stakes*
18,975.6
15,959.2
+18.9%
17,131.0
+10.8%
Attributable to
lottery
14,726.3
12,733.1
+15.7%
13,548.7
+8.7%
Instant games
8,982.4
7,718.4
+16.4%
8,204.6
+9.5%
Draw games
5,744.0
5,014.7
+14.5%
5,344.1
+7.5%
Attributable to sports
betting
4,215.7
3,185.7
+32.3%
3,537.8
+19.2%
Digitalised stakes**
5,245.1
3,815.6
+37.5%
3,398.2
+54.3%
Offline stakes
16,803.1
14,424.4
+16.5%
16,033.3
+4.8%
* Stakes reflect wagers by players, and do not constitute the
revenue of the FDJ group ** Digitalised stakes include online and
digitalised stakes at the point of sale, i.e. using a digital
service/application for their preparation, prior to registration by
the distributor
1 Data adjusted for the new fiscal and regulatory framework,
exceptional long lottery cycles and expenses relating to the
Group’s IPO, and consolidating Sporting Group on a full-year basis.
2 BDO-Bipe study. The methodology of this study integrates the
international economic impact assessment standards used by the
major authorities (UN, European Commission, etc.). It assesses
direct, indirect, induced and catalytic effects in order to
calculate FDJ’s contribution to wealth (GDP) and employment in
France. 3 Registration Document under registration number I.19-035
approved by the AMF as of 17 October 2019. 4 Unwon jackpots
accumulate – starting at €8 million for Loto and €75 million for
Euromillions – thereby offering increasingly high jackpots 5 Free
cash flow: cash flow generated from operations after operating
investments. 6 Available cash: cash & cash equivalents net of
Euromillions funds, and deposits available in less than 32
days.
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