French gaming giant La Française des Jeux (FDJ) reported that the good results in the second half of 2020 helped to limit declines in turnover and revenue – and stay in profit – for the year.
After the company reported an 18.4% decline in turnover in the first half of the year, sales of the sports betting lottery and games increased 2.8% in the next six months through December 31, 2020.
This helped FDJ generate revenue of € 15.96 billion for the year, although it represents a 6.8% drop compared to the adjusted total of € 17.13 billion for 2019.
The 2019 figures have been adjusted to reflect France’s new fiscal and regulatory framework, the Sporting Group’s total results and the expenses related to the FDJ’s initial public offering.
The FDJ also stressed that the growth in online lottery sales partially offset the decline in activity at the points of sale, which was significant in the first half as France entered the first quarantine starting on March 12.
After the situation eased in June, activity improved, although a new restriction order occurred on 30 October. Throughout the year, the online lottery’s turnover accounted for € 1.10 billion, almost 9% of all vertical bets.
https://twitter.com/FDJ/status/1360129048857444352Sports betting data
Sports betting, in turn, fell by 10% to € 3.19 billion, generated mainly by the suspension of almost all sports activities between March and May.
The company also highlighted the migration of customers to online, aided by the launch of the new Parions Sport En Ligne website by FDJ and the Loto Foot 8 and 12 games. In total, FDJ’s online bets represented 80% of the game, compared to 70 % in 2019.
“2020 was an unprecedented year, during which the FDJ demonstrated resilience and solidarity. The health crisis had a particularly strong impact on our business in the first half, ”said the operator’s chief executive, Stéphane Pallez.
She added: “But the recovery in the second half, combined with the group’s responsiveness and the relevant digital strategy, allowed us to preserve our annual performance and results”.
Throughout the year, FDJ’s clients earned € 10.85 billion, leaving gross revenue at € 5.11 billion, down 6.4%. Since € 3.24 billion from the operator went to public fees, including sports betting and lottery payments.
However, the blockades at the beginning and end of 2020 reduced costs, aided by efforts to cut expenses as FDJ sought to mitigate the impact of Covid-19. This generated a non-recurring operating profit that grew 28.8% to € 324.7 million.
Prospects of the FDJ for 2021
In the long term, FDJ is focused on offering an increasingly global experience and strengthening its leading position in the French betting market. “Uncertainties persist for 2021”.
The president of the FDJ stressed: “For the lottery, the launches are planned for several instant games, while more than ten events promoting special lotto and EuroMillions jackpots will spice up the year”.
She concluded: “The expansion of the online lottery game offering will continue, with innovative and richer experiences. In addition, sports betting will benefit from EuroCopa and the Tokyo Olympic and Paralympic Games, which will liven up this year’s events calendar ”.
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