BOULOGNE-BILLANCOURT, France - La Française des Jeux (FDJ), France's leading gaming operator, has reported a significant uptick in its revenue and recurring earnings before interest, taxes, depreciation, and amortization (EBITDA) for the fiscal year 2023. The company's revenue increased by 6.5% to €2.621 billion, with a like-for-like rise of 2.8%.
The lottery segment experienced a 7.8% growth in revenue, totaling €531 million. This was mainly attributed to the popularity of the Euromillions super jackpot, which began at €200 million in early December, and the introduction of the EuroDreams game in early November. The increased momentum of online lottery sales also contributed to this growth.
Additionally, competitive sports betting and online gaming open to competition saw revenues climb by 14.9% to €159 million, with a 6.3% like-for-like increase, excluding the first consolidation of ZEturf's activities. The robust market and favorable outcomes for the operator at the year's end fueled this performance.
FDJ's online gaming business witnessed an 18.8% surge in revenue, which represented nearly 13% of the group's total revenue in 2023, up from 11% in the previous year.
The recurring EBITDA for the year stood at €675 million, resulting in a margin of 25.1%. This figure reflects the strong end to the year and the significant contribution from the digital business. However, without the exceptional sports results and a reversal of a provision related to disputes with former broker-agents, the margin would have been 24.3%.
The group's net cash surplus was €671 million at the end of December 2023, compared to €900 million at the end of December 2022.
FDJ is set to announce its detailed results for 2023 on Thursday, February 15, 2024, before the market opens. The financial statements presented in this press release, which are part of the annual accounting process, are currently under audit and will be approved by the board on February 14, 2024.
The information in this article is based on a press release statement from La Française des Jeux.
InvestingPro Insights
As La Française des Jeux (FDJ) celebrates its robust financial performance for the fiscal year 2023, investors and industry watchers would find additional insights from InvestingPro particularly valuable. With a reported increase in revenue and a strong EBITDA margin, it's worth noting that FDJ also holds more cash than debt on its balance sheet, which is a reassuring sign of financial health and stability. This is complemented by the fact that the company has been able to consistently raise its dividend for 4 consecutive years, showcasing a commitment to returning value to shareholders.
On the valuation front, FDJ is currently trading at a P/E ratio of 18.87, which is slightly elevated when considering the near-term earnings growth, indicating that investors are willing to pay a premium for the company's shares. The Price / Book ratio also stands at a high 7.84 as of the last twelve months ending Q2 2023, which suggests that the market is valuing the company's assets at a significant markup over their book value.
With a healthy dividend yield of 3.99% and a strong return over the last three months of 15.15%, FDJ appears to be a stable investment with a potential for steady income. For those looking to delve deeper into the financial intricacies of FDJ, InvestingPro offers a comprehensive set of additional tips, with a total of 9 more tips available to subscribers. To enhance your investment strategy, consider subscribing to InvestingPro, currently on a special New Year sale with discounts of up to 50%. Use coupon code SFY24 to get an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 to get an additional 10% off a 1-year subscription.
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