La Française des Jeux (FDJ), France’s leading lottery and gaming operator, has reported its Q3 and year-to-date financial results for 2024, showcasing significant growth across all segments. The group’s revenue for the period ending in September totaled an impressive €2.1 billion ($2.27 billion), marking an increase of 11.9% year-on-year or 5.8% on a like-for-like basis. FDJ’s revenue for the third quarter contributed €669 million, reflecting a growth of 14.2% year-on-year or 8% on a like-for-like basis.

La Française des Jeux (FDJ) Reports Strong Q3 2024 Results: Revenue Surges with Strategic Acquisitions

The company’s growth is attributed to its diversified portfolio, strong market positioning, and strategic acquisitions, including the successful completion of the Kindred acquisition in October. FDJ’s presence in both France and Ireland has seen substantial point-of-sale growth, while its digital revenue surged by 39.3% year-on-year, demonstrating the company’s strong digital transformation.

Key Revenue Drivers: Point-of-Sale and Digital Channels

FDJ’s performance in France, its primary market, has been especially robust. Revenue in France totaled €1.9 billion for the year-to-date, representing an 8% increase. This figure includes revenue from FDJ’s exclusive lottery and sports betting products, as well as online gaming, which is open to competition. Notably, point-of-sale revenue in France rose by 2.7%, highlighting FDJ’s continued success in traditional sales channels.

At the same time, digital revenue saw a significant increase of 39.3% year-on-year or 24.8% on a like-for-like basis, reaching €302 million. This growth underscores the importance of FDJ’s digital strategy, as more players shift to online gaming platforms.

FDJ Lottery Segment: Stable Growth Despite M&A Activity

The lottery segment remains the cornerstone of FDJ’s business. For the first nine months of 2024, lottery revenue reached €1.5 billion, up 6.6% year-on-year and on a like-for-like basis. This performance is impressive, considering the minimal impact from recent mergers and acquisitions. The lottery segment also delivered strong results in Q3, generating €495 million, reflecting 10% growth year-on-year.

Breakdown by Game Type:

• Instant Games: Revenue grew by 7.8%, driven by successful product launches such as Ticket d’Or and Maxi Black Jack earlier this year.
• Draw Games: Revenue increased by 4.7% (and 9.9% excluding Amigo), bolstered by the continued success of the EuroDreams product.

This consistent performance in the lottery segment demonstrates FDJ’s ability to innovate within traditional gaming formats, keeping player engagement high while maintaining steady growth.

Sports Betting and Online Gaming

FDJ’s sports betting and online gaming segment also delivered impressive results, generating €407 million for the period ending in September. This represents a 13.3% increase year-on-year or 5% on a like-for-like basis. The acquisition of Zeturf, an online horse racing betting provider, in October 2023, likely contributed to this growth.

Moreover, FDJ’s online business saw substantial growth, with revenue up 28.4% on a like-for-like basis. This growth was driven by both domestic and international operations, as FDJ continues to expand its footprint beyond France.

Strategic Acquisitions Bolstering Growth:

• The acquisition of Zeturf strengthened FDJ’s position in the online betting market, particularly in horse racing.
• FDJ also offloaded several verticals from its Sporting Solutions brand to Betsson in August, streamlining operations and focusing on core growth areas.

This strategic approach to acquisitions and divestitures has allowed FDJ to maintain a balanced portfolio while enhancing its competitive edge in the rapidly evolving iGaming and sports betting sectors.

International Growth and Payment & Services Segment

FDJ’s international and payment & services segment reported total revenue of €190 million for the period ending in September, a notable increase from the €108 million reported last year. While the company did not disclose a year-on-year comparison, the like-for-like basis reflected a 3.4% decline. In Q3, this segment generated €61 million, up 2.1% on a like-for-like basis.

FDJ’s recent acquisition of Premier Lotteries Ireland (PLI) in November 2023 played a significant role in its international growth, allowing the company to expand its footprint beyond its home market. However, the absence of year-on-year comparisons for this segment reflects the impact of ongoing M&A activity, as FDJ continues to integrate its newly acquired assets.

The Kindred Acquisition: Creating a European Champion

A major highlight of FDJ’s strategic efforts in 2024 has been the successful acquisition of Kindred Group, which was completed in October 2024. FDJ now owns 91.8% of Kindred shares, having surpassed the 90% threshold required to complete the acquisition, which was valued at approximately €2.6 billion when first announced in January. FDJ plans to increase its ownership to 100% through an extension of its tender offer period.

The Kindred acquisition marks a key milestone in FDJ’s strategy to create a diversified and balanced European gaming champion. This move enhances FDJ’s market share in key European markets and strengthens its competitive position in the global gaming industry.

Several high-profile resignations from Kindred’s Board have followed the acquisition, including Chairman Evert Carlsson, with new Board members appointed by FDJ to oversee the next phase of integration and growth.

FDJ Chairwoman and CEO Comments on Strong Performance

Commenting on the company’s results, Stéphane Pallez, Chairwoman and CEO of FDJ, said: “FDJ continues to deliver a solid financial and non-financial performance, which allows us to confirm our growth and profitability trend for the year as a whole. This performance was driven both by the lottery and by sports betting and online gaming open to competition, and by all our distribution channels, with a network of points of sale in progression and strong momentum from digital games.”

She also emphasized the strategic importance of the Kindred acquisition, stating:” The group also reached a major milestone in the implementation of its strategy with the completion of the Kindred acquisition in early October, creating a European champion with a diversified and balanced profile for the benefit of all our stakeholders.”

Conclusion: A Promising Outlook for FDJ

With robust financial performance across its core segments and the successful completion of strategic acquisitions, FDJ is well-positioned for continued growth. The company’s focus on both traditional point-of-sale channels and digital gaming platforms ensures it remains competitive in an evolving market.

FAQs About La Française des Jeux (FDJ) Reports Strong Q3 2024 Results

1. What is La Française des Jeux (FDJ)?

La Française des Jeux (FDJ) is France’s leading lottery and gaming operator, offering a wide range of lottery, sports betting, and online gaming products. It is also a key player in the European gaming industry.

2. How did FDJ perform in Q3 2024?

FDJ reported a strong performance in Q3 2024, with total revenue of €669 million, reflecting a 14.2% increase year-on-year or 8% on a like-for-like basis. For the year-to-date (ending September), FDJ’s total revenue was €2.1 billion, up 11.9% year-on-year.

3. What were the main revenue drivers for FDJ in 2024?

The main revenue drivers were the lottery segment, sports betting, and online gaming. Lottery revenue grew by 6.6% year-on-year, while sports betting and online gaming grew by 13.3%. Additionally, FDJ’s digital revenue saw an impressive increase of 39.3% year-on-year.

4. How did FDJ’s lottery segment perform in 2024?

FDJ’s lottery segment generated €1.5 billion in revenue for the first nine months of 2024, representing a 6.6% increase year-on-year. Instant game revenue grew by 7.8%, while draw game revenue increased by 4.7%.

5. What impact did digital gaming have on FDJ’s results?

FDJ’s digital revenue experienced significant growth, increasing by 39.3% year-on-year or 24.8% on a like-for-like basis. This highlights the growing importance of FDJ’s digital transformation and online gaming strategy.

6. What is the significance of FDJ’s acquisition of Kindred?

FDJ’s acquisition of Kindred Group was completed in October 2024, making FDJ a major player in the European gaming market. FDJ now owns 91.8% of Kindred shares, with plans to increase ownership to 100%. The acquisition, valued at €2.6 billion, will enhance FDJ’s market share and create a more diversified gaming portfolio.

7. How has FDJ expanded internationally in 2024?

FDJ has expanded its international footprint through acquisitions, notably Premier Lotteries Ireland (PLI) and Kindred Group. The company’s international and payment & services segment generated €190 million in revenue for the period ending in September, highlighting FDJ’s focus on global growth.

8. What comments did FDJ’s CEO make about the company’s performance?

Stéphane Pallez, Chairwoman and CEO of FDJ, highlighted the company’s strong financial and non-financial performance, driven by the lottery, sports betting, and digital gaming. She also emphasized the strategic importance of the Kindred acquisition, which strengthens FDJ’s position as a European gaming leader.

9. How did FDJ’s sports betting and online gaming segment perform?

FDJ’s sports betting and online gaming segment generated €407 million, up 13.3% year-on-year. The acquisition of Zeturf, an online horse racing betting provider, contributed to this growth. Online business grew by 28.4% on a like-for-like basis.