Groupe Française des Jeux (FDJ) has seen a solid ‘sports recovery’ and combined with the reopening of its retail point-of-sales network, is able to upgrade its corporate forecasts for the full year 2020.
Publishing its Q3 2020 trading update (period ending 30 September), FDJ stresses that as group wagers rise 6 percent to EUR 4.4 billion, it has reported a ‘accelerated recovery since mid-June.’
As its sports betting unit (online + POS) reports a +27 percent rise in wagers to just under EUR 1 billion,’ the Paris Euronext business notes that it has gained from a ‘packed sports calendar’.
In the meantime, FDJ experienced a 1 percent rise in community lottery wagers to EUR 3.4 billion, with the organisation highlighting the successful reactivation of its AMIGO retail POS network, along with a 44 percent increase in online lottery sales to EUR 400 million.
Lottery and sports betting combined Q3 player winnings totaled EUR 3 billion , representing a 69 percent consumer payout ratio (Q3 2019: 67 percent) with FDJ highlighting that its sports betting players had benefited from favourable results.
FDJ has retained a steady GGR (stakes-payout) of EUR 1.3 billion, returning to its full operating potential, while corporate net sales matched its 2019 performance of EUR 0.5 billion.
To date, the FDJ notes that its community wagers stand at EUR 11.2 billion, currently tracking EUR 12.6 billion at 10 percent behind YTD 2019 results.
In the meantime, having absorbed major trade impacts from Q2, FDJ reports that its new GGR YTD community stands at EUR 3.5 billion, lagging 10.5 percent behind its EUR 4 billion YTD 2019 comparatives.
Despite its wagering and sales decreases, FDJ reports that it has reduced its new corporate sales to EUR 1.35 billion YTD, currently trading 5 percent behind its EUR 1.4 billion 2019 results.
Stéphane Pallez, Group CEO of the FDJ Group explained: “The third quarter confirmed the good momentum seen since mid-June and recovery in our business at levels comparable to 2019. The Group thus demonstrates its resilience and its reactivity.
“Over the entire year, without new measures of general restrictions linked to the evolution of the health environment, the impact of the crisis on our revenue should be contained, and our EBITDA margin should remain at a high level, thanks to the strong mobilisation of our employees and our distribution network, as well as the cost reduction measures that we have implemented as early as March.”
FDJ management ends its statement by stressing that the business is focused on optimising Q4 performance as the business would benefit from a packed lottery schedule at the end of the year and a rise in sports activities.
In order to help the company reach net sales of EUR 1.9 billion, FDJ intends to close full-year 2020 wagers at EUR 16 billion by adjusting its corporate outlook, ending the year trading at 7 percent below its uninterrupted projections prior to 2020.
Pallez and FDJ governance, signing-off accounts, reaffirm that the organisation continues to work on its cost reduction strategy targeting EUR 80 million of group-wide savings.