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La Française des Jeux (FDJ) announces its results for the first half of 2020
The good momentum in stakes seen in the early part of the year (increase of 5% until mid-March) was halted by the consequences of the Covid-19 epidemic (decline of nearly 60% over the two months of lockdown). The gradual recovery since the lifting of lockdown in mid-May has accelerated with the gradual resumption of sporting competitions, including most of the national football championships in Europe, and the return of Amigo on 8 June. As such, the decline in stakes was limited to 18% over the half-year compared with the first half of 2019. They totalled €6.9 billion, breaking down as:
- Lottery stakes down 13% at €5.8 billion:
- Of which -15% for draw games to €2.2 billion and -11% for instant games to €3.6 billion;
- A 50% increase in online stakes to €0.5 billion.
- Sports betting stakes down 39% at €1.1 billion.
- Half-year revenue totalled €849 million, down 15% on an adjusted basis,1 and EBITDA amounted to €174 million, a margin of 20.5%.
- For EBITDA, the mechanical impact of the decline in activity was partially offset by the implementation of a large part of the savings plan of more than €80 million for 2020.
- From mid-June the Group has returned to an overall level of activity comparable with that of 2019. However, in view of the many uncertainties that remain, the Group does not communicate any business or earnings forecasts for the financial year 2020 as a whole. However, it should be borne in mind that the EBITDA margin for the second half of 2019 benefited from exceptional long lottery cycles, as well as unexpected sporting results, which reduced the player payout ratio in the sports betting segment.
Stéphane Pallez, Chairwoman and Chief Executive Officer of FDJ, said: “The Group’s strong mobilisation from the onset of the health crisis and a swiftly implemented cost-cutting plan have limited the impact on the first-half results. For several weeks, we have been recording stakes at a level comparable with that of 2019. Our strategic orientations and the strength of the FDJ model have been confirmed, and we continue to invest to support the development of all our activities.”
The 2019 data used for the following analyses have been adjusted to reflect the new tax regime that came into force on 1st January 2020 and to consolidate Sporting Group over a full year (but without adjustment for long lottery cycles)
Key figures (in millions of euros)
|
30 June |
30 June 2019 adjusted |
Chg. vs |
30 June 2019 |
Chg. vs |
|
|
Stakes |
6,898 |
8,454 |
(18%) |
8,420 |
(18%) |
|
Revenue* |
849 |
995 |
(15%) |
944 |
(10%) |
|
Recurring operating profit |
124 |
165 |
(25%) |
136 |
(9%) |
|
Net profit |
50 |
|
|
96 |
(48%) |
|
|
|
|
|
|
|
|
EBITDA** |
174 |
208 |
(16%) |
177 |
(2%) |
|
EBITDA/revenue |
20.5% |
20.9% |
|
18.8% |
|
* Revenue: net gaming revenue and revenue from other activities
** EBITDA: recurring operating profit adjusted for depreciation and amortisation
Activity and results for H1 2020
- Stakes of €6.9 billion, down 18.4%
- Lottery stakes of €5.8 billion (-12.6%)
Lottery staked amounted to €5.8 billion, with a drop of 11.3% to €3.6 billion for instant games and a drop of 14.6% to €2.2 billion for draw games:
- For instant games, the decline can be attributed in large part to the steep decline in footfall in points of sale during lockdown and the lack of activity in the product portfolio during the second quarter;
- For draw games, the decrease can be ascribed chiefly to the suspension of Amigo, an express draw game in points of sales from 19 March to 8 June. Adjusted for Amigo, draw games stakes were down only slightly (-1.7%);
- Online lottery stakes enjoyed good momentum, with an increase of 50% to €0.5 billion, and a marked acceleration in the second quarter, driven mainly by growth in the number of active players and the almost doubling of new registrations on fdj.fr.
- Sports betting stakes of €1.1 billion (-38.8%)
Sports betting stakes totalled €1.1 billion. After a performance in line with objectives at the start of the year, sports betting stakes were impacted by the gradual cancellation of virtually all sporting competitions from mid-March 2020. No major sporting competitions took place during lockdown, which considerably reduced the betting offer. Since mid-May, sporting competitions, particularly football, have gradually resumed, resulting in a very significant resumption in stakes.
- Revenue down 14.7% at €849 million
On half-yearly stakes of €6.9 billion (-18.4%), player winnings totalled €4.6 billion (-19.9%), representing a player payout (PPO) ratio of 67.3%, compared with 68.4% in the first half of 2019. The decline in the PPO reflects the change in the betting mix, with a higher share of lottery games. In addition, the sports betting PPO was reduced by unexpected results.
FDJ recorded gross gaming revenue (GGR: stakes less prizes won) down 15.1% at €2.3 billion. Net gaming revenue (NGR: GGR less contribution to the public finances) amounted to €829 million, i.e. 12.0% of stakes, with stability in the rate of public levies on games compared with that of the first half of 2019 at 63.5% of GGR, or €1.4 billion.
The FDJ Group’s revenue amounted to €849 million (-14.7%), compared with €995 million in the six months to end-June 2019.
- EBITDA of €174 million, representing a margin of 20.5% on revenue (vs 20.9% in H1 2019)
- Contribution margin by activity:
- Lottery: contribution margin steady at 32.2%
The contribution margin of the Lottery BU was €219 million, i.e. a decline of €37 million (‑14.4%), for a margin on revenue of 32.2%, vs 33.2% in H1 2019 on the basis of revenue down 12.2% at €679 million.
Cost of sales, mainly the remuneration of distributors, was down 13.6% due to the drop in stakes in points of sale, while the slight increase of 6.6% in marketing and communication expenses to €65 million reflects the continued development of the product offering, partly offset by the reduction in advertising and promotional expenses.
- Sports betting: contribution margin of 31.3%, an increase of 7 points due to the low PPO ratio
The Sports Betting BU’s contribution margin was €45 million in H1 2020, almost stable compared with the same period in 2019 (€48 million), i.e. a margin on revenue of 31.3%, up more than 7 points compared with the first half of 2019 (24.3%). Based on a drop of 38.8% in stakes, the lower half-yearly PPO ratio than in the first half of 2019 (73.1% vs 77.7%) helped limit to €50 million the decline in revenue (-25.7%) to €145 million.
The 39.3% reduction in cost of sales reflects trends in stakes, while the 15.8% decline in marketing and communication expenses to €34 million is related to the reduction in advertising and promotional initiatives against the backdrop of a reduced product offering.
- Adjacent activities and holding company
Adjacent activities (International, Payments & Services and Entertainment) and the holding company recorded revenue of €24 million, with a contribution margin close to breakeven. Holding company costs amounted to €89 million, down €9 million compared with H1 2019.
- EBITDA margin of 20.5%, virtually stable thanks in large part to the implementation of a savings plan of more than €80 million
From the onset of the health crisis and its first effects, the Group implemented a savings plan of more than €80 million for 2020. Two-thirds of the plan, more than half of which covered A&P expenditure, was implemented in H1, helping offset more than half of the decline in activity and thereby helping keep FDJ’s EBITDA margin above 20%.
The Group’s operating expenses were down 12.5% at €725 million, of which:
– Cost of sales of €482 million, down 17.6%, which notably includes the remuneration of €336 million for distributors, down €88 million (-21%), in line with the decline in stakes in the point-of-sale network;
– Marketing and communication expenses of €147 million, down nearly 2%;
– General and administrative expenses of €87 million, down 7%.
Depreciation and amortisation amounted to €50 million, compared with €43 million in H1 2019. Their growth was driven mainly by the amortisation of exclusive operating rights over a full half-year in 2020, compared with a single month in H1 2019.
On those bases, the FDJ Group recorded a recurring operating profit of €124 million (-24.9%) and EBITDA of €174 million (-16.4%), i.e. a margin on revenue of 20.5%, compared with 20.9% in June 2019.
- Net income of €50 million including non-recurring items
In the first half of 2020, FDJ recorded other non-recurring operating expenses of €30 million, compared with €7 million in the first half of 2019. They related to Sporting Group, on which FDJ recorded impairment due to its sports betting activity in the United Kingdom.
The financial result for the first half of 2020 (expense of €5 million) reflects the change in the value of part of FDJ’s financial assets in a context of bearish financial markets.
After taking into account a net tax expense of €39 million, down €5 million, the Group’s net profit for the first half of 2020 was €50 million.
- Available cash exceeding €800 million and net cash surplus of €298 million at end-June 2020
At the end of June 2020, the Group had more than €800 million in available cash.
The net cash surplus is one of the indicators of the level of net cash generated by the Group. It corresponds mainly to financial investments and gross cash (€1,154 million), less borrowings (€733 million).
As of 30 June 2020, it amounted to €298 million, an increase of €218 million compared with 31 December 2019. The change was mainly attributable to:
– The EBITDA generated over the half-year, plus a dual positive effect on working capital surplus linked on the one hand to the change in the payment schedule for public levies (monthly in 2020 but weekly in 2019) and on the other hand to unclaimed prizes only returned to the State at the end of the year;
– Against which are charged dividends in respect of 2019 and investments for the first half of the year.
For information, the net cash surplus at the end of June cannot be extrapolated to the end of December because there are significant calendar effects on the payments of public levies, including an advance on public levies in December.
A financial presentation is available on the FDJ group’s website
https://www.groupefdj.com/en/investors/financial-publications.html.
FDJ’s Board of Directors met on 29 July 2020 and reviewed the interim consolidated financial statements at 30 June 2020, which were prepared under its responsibility. The limited review procedures on the interim consolidated financial statements have been carried out. The review report of the statutory auditors is being issued.
The Group’s next financial communication
Given the changing nature of the situation, the estimates and forward-looking statement presented by FDJ cannot constitute either a forecast or a target. The Group will announce its stakes and revenue for the September quarter after trading on 14 October and will issue its new 2020 outlook as soon as possible.
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 the SBF 120, Euronext Vigeo France 20, STOXX Europe 600, MSCI Europe and FTSE Euro indices.
For further information, www.groupefdj.com
Appendices
Adjusted 2019 data, with the full-year application of the new tax regime that came into force on 1 January 2020 and the consolidation of Sporting Group over 12 months.
|
In € million |
30 June 2020 |
30 June 2019 |
Chg. 30 June 2020 vs |
30 June 2019 |
Chg. 30 June 2020 vs |
|
Stakes* |
6,898 |
8,420 |
(18.1%) |
8,454 |
(18.4%) |
|
Attributable to Lottery |
5,777 |
6,609 |
(12.6%) |
6,609 |
(12.6%) |
|
Instant lottery games** |
3,558 |
4,012 |
(11.3%) |
4,012 |
(11.3%) |
|
Draw games |
2,219 |
2,598 |
(14.6%) |
2,598 |
(14.6%) |
|
Attributable to Sports betting |
1,108 |
1,810 |
(38.8%) |
1,810 |
(38.8%) |
|
|
|
|
|
|
|
|
Digitalised stakes*** |
1,391 |
1,652 |
(15.8%) |
1,652 |
(15.8%) |
|
Offline stakes |
6,269 |
7,917 |
(20.8%) |
7,917 |
(20.8%) |
* Stakes reflect wagers by players, and do not constitute the revenue of the FDJ Group
** Mainly scratch games (point of sale and online)
*** 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
|
In € million |
30 June 2020 |
30 June 2019 |
Chg. 30 June 2020 vs |
30 June 2019 |
Chg. 30 June 2020 vs |
|
Stakes |
6,898 |
8,420 |
(18.1%) |
8,454 |
(18.4%) |
|
Player winnings |
4,646 |
5,757 |
(19.3%) |
5,799 |
(19.9%) |
|
Player payout ratio |
67.3% |
68.4% |
|
68.6% |
|
|
Gross gaming revenue (GGR) |
2,253 |
2,663 |
(15.4%) |
2,654 |
(15.0%) |
|
GGR as a % of stakes |
32.7% |
31.6% |
3.3% |
31.4% |
4.0% |
|
Net gaming revenue (NGR) |
829 |
933 |
(11.2%) |
976 |
(15.0%) |
|
NGR as a % of stakes |
12.0% |
11.1% |
8.5% |
11.5% |
4.1% |
|
Revenue |
849 |
944 |
(10.1%) |
995 |
(14.7%) |
Segment reporting
| 30 June 2020 | |||||||
| In € millions | Lottery BU | Sport Betting BU |
Other segments |
Holding company |
Total before depreciation and amortisation |
Depreciation and amortisation |
Total Group |
| Stakes |
5,777 |
1,108 |
14 |
– |
6,898 |
6,898 |
|
| Gross gaming revenue |
1,954 |
298 |
1 |
– |
2,253 |
2,253 |
|
| Net gaming revenue |
677 |
145 |
6 |
– |
829 |
829 |
|
| Revenue |
679 |
145 |
24 |
1 |
849 |
849 |
|
| Cost of sales |
(395) |
(65) |
(3) |
– |
(464) |
(18) |
(482) |
| Marketing and communication expenses |
(65) |
(34) |
(21) |
(12) |
(133) |
(14) |
(147) |
| Contribution margin |
219 |
45 |
(1) |
(12) |
251 |
(32) |
219 |
| General and administration expenses |
(78) |
(78) |
(18) |
(95) |
|||
| EBITDA |
174 |
||||||
| Depreciation and amortisation |
(50) |
||||||
| Recurring operating profit |
124 |
||||||
| BU Loterie | BU Paris sportifs |
ABU | Holding | Total avant amort. |
Amort. | Total Groupe | |
| Mises |
6,610 |
1,810 |
34 |
0 |
8,454 |
8,454 |
|
| Produit Brut des Jeux (PBJ) |
2,251 |
403 |
0 |
0 |
2,654 |
2,654 |
|
| Produit Net des Jeux (PNJ) |
771 |
195 |
9 |
0 |
976 |
976 |
|
| Chiffre d’affaires |
773 |
195 |
27 |
0 |
995 |
995 |
|
| Coût des ventes |
-456 |
-107 |
-3 |
0 |
-566 |
-19 |
-585 |
| Coûts marketing et communication |
-61 |
-41 |
-22 |
-14 |
-138 |
-12 |
-150 |
| Marge contributive |
256 |
48 |
2 |
-14 |
291 |
-31 |
260 |
| Coûts administratifs et généraux |
-83 |
-83 |
-12 |
-95 |
|||
| EBITDA |
208 |
||||||
| Dotations aux amortissements |
-43 |
||||||
| Résultat Opérationnel Courant |
165 |
| 30 June 2019 published | |||||||
| In € millions | Lottery BU |
Sport Betting BU |
Other segments |
Holding company |
Total before depreciation and amortisation |
Depreciation and amortisation |
Total Group |
| Stakes |
6,610 |
1,810 |
– |
– |
8,420 |
8,420 |
|
| Gross gaming revenue |
2,257 |
406 |
– |
– |
2,663 |
2,663 |
|
| Net gaming revenue |
759 |
173 |
2 |
– |
933 |
933 |
|
| Revenue |
761 |
173 |
11 |
– |
944 |
944 |
|
| Cost of sales |
(456) |
(107) |
(1) |
– |
(564) |
(19) |
(583) |
| Marketing and communication expenses |
(62) |
(40) |
(11) |
(14) |
(127) |
(11) |
(138) |
| Contribution margin |
243 |
26 |
(2) |
(14) |
253 |
(30) |
223 |
| General and administration expenses |
(76) |
(76) |
(11) |
(87) |
|||
| EBITDA |
177 |
||||||
| Depreciation and amortisation |
(41) |
||||||
| Recurring operating profit |
136 |
||||||
Consolidated income statement
| In € millions | 30 June 2020 | 30 June 2019 published |
| Stakes |
6,898.4 |
8,420.0 |
| Player payout |
(4,645.5) |
(5,756.9) |
| Gross gaming revenue |
2,252.8 |
2,663.0 |
| Public levies |
(1,429.8) |
(1,692.4) |
| Structural allocations to counterparty funds |
0.0 |
(39.1) |
| Other revenue from sports betting |
6.0 |
1.9 |
| Net gaming revenue |
829.0 |
933.4 |
| Revenue from other activities |
19.7 |
10.5 |
| Revenue |
848.6 |
944.0 |
| Cost of sales |
(481.9) |
(582.9) |
| Marketing and communication expenses |
(147.5) |
(138.1) |
| General and administrative expenses |
(87.0) |
(85.6) |
| Other recurring operating income |
0.5 |
0.4 |
| Other recurring operating expenses |
(9.0) |
(1.8) |
| Recurring operating profit |
123.8 |
135.9 |
| Other non recurring operating income |
0.2 |
0.1 |
| Other non recurring operating expenses |
(30.3) |
(7.3) |
| Operating profit |
93.7 |
128.7 |
| Cost of debt |
(2.1) |
(0.8) |
| Other financial income |
5.7 |
12.2 |
| Other financial expenses |
(8.9) |
(0.5) |
| Net financial income/(expense) |
(5.2) |
10.9 |
| Share of net income for joint ventures |
0.5 |
0.6 |
| Profit before tax |
89.0 |
140.2 |
| Income tax expense |
(38.8) |
(44.4) |
| Net profit for the period |
50.2 |
95.9 |
| Attributable to : | ||
| Owners of the parent |
50.2 |
95.9 |
| Non -controlling interests |
0.0 |
0.0 |
| Basic earnings per share (in €) |
0.26 |
0.50 |
| Diluted earnings per share (in €) |
0.26 |
0.50 |
| In € millions |
30 June 2020 |
30 June 2019 |
June 2020 vs |
30 June 2019 |
June 2020 vs |
| Recurring operating profit |
124 |
136 |
(8.8%) |
165 |
(24.8%) |
| Depreciation and amortisation |
(50) |
(41) |
22.0% |
(43) |
16.3% |
| EBITDA |
174 |
177 |
(1.8%) |
208 |
(16.4%) |
Consolidated statement of comprehensive income
| In € millions | 30 June 2020 | 30 June 2019 published |
| Net profit for the period |
50.2 |
95.9 |
| Cash flow hedging, before tax |
0.1 |
0.2 |
| Net investment hedge on foreign activities, before tax |
6.6 |
0.6 |
| Net currency translation difference, before tax |
(2.4) |
0.3 |
| Tax related to items that may subsequently be recycled |
(2.1) |
(0.2) |
| Items recycled or that may subsequently be recycled to profit |
2.2 |
0.9 |
| Actuarial gains and losses |
0.3 |
(3.3) |
| Others |
(0.0) |
(0.0) |
| Tax related to actuarial gains and losses through equity |
(0.1) |
1.0 |
| Items that may not subsequently be recycled to profit |
0.2 |
(2.3) |
| Other comprehensive income/(expense) |
2.4 |
(1.4) |
| Total comprehensive income for the period |
52.7 |
94.5 |
| Attributable to : | ||
| Owners of the parent |
52.7 |
94.5 |
| Non-controlling interests |
0.0 |
0.0 |
Consolidated statement of financial position
| In € millions | ||
| ASSETS | 30 June 2020 | 31 December 2019 published |
| Goodwill |
28.1 |
56.4 |
| Exclusive operating rights |
363.1 |
370.7 |
| Intangible assets |
162.2 |
148.3 |
| Property, plant and equipment |
385.7 |
394.0 |
| Non-current financial assets |
378.1 |
584.3 |
| Investments in associates |
14.9 |
14.5 |
| Non-current assets |
1,332.1 |
1,568.2 |
| Inventories |
16.3 |
10.5 |
| Trade and distribution network receivables |
385.8 |
469.8 |
| Other current assets |
302.0 |
314.8 |
| Tax payable assets |
6.0 |
18.9 |
| Current financial assets |
354.9 |
272.2 |
| Cash and cash equivalents |
475.6 |
201.5 |
| Current assets |
1,540.6 |
1,287.8 |
| TOTAL ASSETS |
2,872.7 |
2,856.0 |
| In € millions | ||
| EQUITY AND LIABILITIES | 30 June 2020 | 31 December 2019 published |
| Share capital |
76.4 |
76.4 |
| Statutory reserves |
91.7 |
87.5 |
| Retained earnings (incl. Net profit for the period) |
366.2 |
406.7 |
| Reserves for other comprehensive income/(expense) |
1.2 |
(1.3) |
| Equity attributable to owners of the parent |
535.4 |
569.2 |
| Non-controlling interests |
0.0 |
0.0 |
| Equity |
535.4 |
569.2 |
| Provisions for pensions and other employee benefits |
56.3 |
56.9 |
| Non-current provisions |
48.1 |
49.3 |
| Deferred tax liabilities |
26.1 |
24.9 |
| Non-current player funds |
0.0 |
0.0 |
| Non-current financial liabilities |
568.6 |
229.7 |
| Non-current liabilities |
699.1 |
360.9 |
| Current provisions |
15.9 |
16.7 |
| trade and distribution network payables |
314.1 |
411.6 |
| Tax payable liabilities |
1.0 |
0.7 |
| Current player funds |
176.4 |
156.6 |
| Public levies |
540.6 |
414.8 |
| Winnings payable and distributable |
244.4 |
189.3 |
| Other current liabilities |
180.6 |
169.6 |
| Payable to the French State with respect to the exclusive operating rights |
0.0 |
380.0 |
| Current financial liabilities |
165.1 |
186.5 |
| Current liabilities |
1,638.2 |
1,925.9 |
| TOTAL EQUITY AND LIABILITIES |
2,872.7 |
2,856.0 |
Consolidated statement of cash flows
| In € millions | 30 June 2020 | 30 June 2019 published |
| OPERATING ACTIVITIES | ||
| Net consolidated profit for the period |
50.2 |
95.9 |
| Change in depreciation, amortisation and impairment of non-current assets |
75.9 |
43.1 |
| Change in provisions |
4.1 |
6.1 |
| Disposal gains or losses |
0.2 |
0.1 |
| Income tax expense |
38.8 |
44.4 |
| Other non-cash items from P&L |
(0.2) |
0.0 |
| Net financial (income)/expense |
5.2 |
(10.9) |
| Share of net income from joint ventures |
(0.5) |
(0.6) |
| Non-cash items |
123.5 |
82.2 |
| Use of provisions – payments |
(6.5) |
(4.5) |
| Interest received |
2.5 |
2.3 |
| Income taxes paid |
(25.2) |
(31.9) |
| Change in trade receivables and other current assets |
(19.6) |
124.2 |
| Change in inventories |
(5.7) |
(1.9) |
| Change in trade receivables and other current liabilities |
222.9 |
(56.5) |
| Change in other components of working capital |
(1.6) |
(1.5) |
| Change in operating working capital |
196.0 |
64.3 |
| Net cash flow from/(used in) operating activities |
340.6 |
208.3 |
| INVESTING ACTIVITIES | ||
| Acquisitions of property, plant and equipment and intangible assets |
(423.2) |
(32.4) |
| Acquisitions of investments |
0.0 |
(111.8) |
| Disposals of property, plant and equipment and intangible assets |
0.1 |
0.0 |
| Change in current and non-current financial assets |
145.3 |
(50.1) |
| Disposals of other financial assets |
0.0 |
0.0 |
| Change in loan and advances granted |
(26.9) |
2.8 |
| Dividends received from associates and non-consolidated share |
0.0 |
0.4 |
| Other |
0.5 |
0.0 |
| Net cash flow from/(used in) investing activities |
(304.3) |
(191.0) |
| FINANCING ACTIVITIES | ||
| Issue of long-term debt |
380.0 |
113.3 |
| Repayment of the current portion of long-term debt |
(8.8) |
(4.0) |
| Repayment of lease liabilities |
(4.0) |
(2.9) |
| Dividends paid to ordinary shareholder of the parent company |
(83.4) |
(118.3) |
| Interest paid |
(4.8) |
(0.8) |
| Other |
(0.6) |
0.0 |
| Net cash flow from/(used in) financing activities |
278.5 |
(12.7) |
| Impact of exchange rates change |
(0.4) |
0.9 |
| Net increase/(decrease) in net cash |
314.3 |
5.5 |
| Cash and cash equivalent as at 1 January |
201.5 |
167.2 |
| Cash and cash equivalent as at 31 December |
475.6 |
179.0 |
| Current bank overdrafts as at 1 January |
(40.2) |
(7.2) |
| Current bank overdrafts as at 31 December |
0.0 |
(13.6) |
Consolidated statement of changes in equity
|
In € millions |
Share capital |
Statutory reserves |
Retained earnings (incl. Net profit for the period) |
Cash flow hedging |
Net investment hedge on foreign activities |
Net currency translation difference |
Actuarial gains and losses |
Reserves for other comprehensive income/ |
Equity attributable to owners of the parent |
Non-controlling interests |
Total equity |
|
|
|||||||||||
|
Equity as at 31 December 2018 |
76.4 |
85.3 |
401.1 |
0.2 |
0.0 |
2.1 |
(1.2) |
1.1 |
563.9 |
0.0 |
563.9 |
|
Net profit for the period |
95.9 |
95.9 |
0.0 |
95.9 |
|||||||
|
Other comprehensive income/(expense) |
0.2 |
0.4 |
0.3 |
(2.3) |
(1.4) |
(1.4) |
(1.4) |
||||
|
Total comprehensive income/(expense) for the period |
0.0 |
0.0 |
95.9 |
0.2 |
0.4 |
0.3 |
(2.3) |
(1.4) |
94.5 |
(0.0) |
94.5 |
|
Appropriation of 2018 profit/(loss) |
2.0 |
(2.0) |
|||||||||
|
2018 dividends paid |
(122.0) |
(122.0) |
(122.0) |
||||||||
|
Equity as at 30 June 2019 |
76.4 |
87.4 |
372.8 |
0.4 |
0.4 |
2.4 |
(3.5) |
(0.3) |
536.2 |
(0.0) |
536.2 |
|
|
|||||||||||
|
Equity as at 31 December 2019 |
76.4 |
87.5 |
406.7 |
(0.1) |
(1.4) |
4.1 |
(3.9) |
(1.3) |
569.2 |
0.0 |
569.2 |
|
Net profit for the period |
50.2 |
50.2 |
50.2 |
||||||||
|
Other comprehensive income/(expense) |
0.1 |
4.5 |
(2.4) |
0.2 |
2.5 |
2.5 |
2.5 |
||||
|
Total comprehensive income/(expense) for the period |
0.0 |
0.0 |
50.2 |
0.1 |
4.5 |
(2.4) |
0.2 |
2.5 |
52.7 |
0.0 |
52.7 |
|
Appropriation of 2019 profit/(loss) |
4.2 |
(4.2) |
|||||||||
|
2019 dividends paid |
(86.0) |
(86.0) |
(86.0) |
||||||||
|
Other |
(0.6) |
(0.6) |
(0.6) |
||||||||
|
Equity as at 30 June 2020 |
76.4 |
91.7 |
366.1 |
0.0 |
3.1 |
1.7 |
(3.7) |
1.2 |
535.4 |
0.0 |
535.4 |
Net cash surplus
| In € millions | 30 June 2020 | 31 December 2019 published |
| Non-current financial assets at amortised cost |
160.0 |
440.0 |
| Non-current assets fair value through profit or loss |
131.3 |
90.4 |
| Other non-current financial assets excluding deposits |
32.4 |
29.3 |
| Total non-current investments (a) |
323.7 |
559.8 |
| Current financial assets at amortised cost |
349.0 |
253.0 |
| Current financial assets at fair value through profit or loss |
5.0 |
16.1 |
| Current derivatives |
0.8 |
0.9 |
| Total current investments (b) |
354.8 |
270.0 |
| Total current and non-current investments |
678.5 |
829.8 |
| Investments, cash equivalents |
185.0 |
121.2 |
| Cash at bank and in hand |
290.7 |
80.3 |
| Total cash and cash equivalents |
475.7 |
201.5 |
| Total gross investments and cash |
1,154.2 |
1,031.3 |
| Long-term financial debt |
546.1 |
205.0 |
| Non-current lease liabilities |
22.0 |
24.4 |
| Total non-current financial debt (c) |
568.1 |
229.4 |
| Short-term financial debt |
27.2 |
8.2 |
| Current lease liabilities |
7.2 |
7.0 |
| Current derivatives |
0.2 |
0.7 |
| Other |
130.5 |
170.5 |
| Total current financial debt excluding deposits (d) |
165.1 |
186.4 |
| Total financial debt |
733.2 |
415.8 |
| INVESTMENTS AND NET CASH |
421.0 |
615.5 |
| Payable to the French State with respect to the exclusive operating rights |
0.0 |
(380.0) |
| Reclassification of online players wallets not yet covered by trust |
0.0 |
(26.9) |
| Restricted cash |
(4.5) |
(5.3) |
| Sums allocated exclusively to Euromillions winners |
(72.6) |
(77.2) |
| Net liability associated with the permanent fund surplus |
(46.1) |
(46.1) |
| NET CASH SURPLUS |
297.8 |
79.9 |
(a) Non-current investments correspond to non-current financial assets (as set out in the notes to the consolidated financial statements – statement of financial position), excluding Euromillions deposits and guarantee deposits
(b) Current investments correspond to current financial assets (as set out in the notes to the consolidated financial statements – statement of financial position), excluding given deposits and guarantees
(c) Long-term financial debt corresponds to non-current financial liabilities (as set out in the notes to the consolidated financial statements – statement of financial position), excluding received deposits and guarantees
(d) Short-term financial debt corresponds to non-current financial liabilities (as set out in the notes consolidated financial statements – statement of financial position)
———————————————
1 Restated to reflect the new tax regime that came into force on 1 January 2020 and consolidating Sporting Group on a full-year basis. Based on 2019 reported figures, half-year revenue would have been down 10%.
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Bragg Gaming Group, a leading online gaming technology provider, has confirmed a major cybersecurity incident that compromised its internal IT infrastructure in the early hours of Saturday, August 16, 2025.
The company detected unauthorized intrusion attempts that successfully breached its internal network, triggering an immediate and comprehensive incident response.
Key Takeaways
-
Bragg Gaming Group experienced a cybersecurity breach involving access to internal IT systems.
-
No customer personal data or payment information appears to have been compromised.
-
The company has enacted full containment and investigation protocols.
Details of the Breach
According to a preliminary forensic analysis by Bragg’s internal security team, the attack was a targeted breach aimed at the company’s internal computer environment. While the exact method of intrusion is still under investigation, early indicators suggest a sophisticated exploit of internal network vulnerabilities.
Fortunately, the company’s customer-facing systems, including sensitive user data and financial information, appear to have been unaffected. Bragg’s existing encryption protocols and access control systems successfully prevented the attackers from accessing customer information.
Immediate Response Measures
In response to the breach, Bragg launched a multi-tiered containment strategy, including:
-
Network Segmentation to isolate affected systems
-
Enhanced Monitoring of data flows across its Remote Games Server (RGS) platform
-
Security Audits of critical infrastructure, including the Bragg Hub and PAM systems
-
Engagement of Independent Cybersecurity Experts to assist in incident analysis and system hardening
Bragg’s Security Operations Center has also elevated its alert level, initiating 24/7 monitoring across all server clusters and network endpoints. In addition, company-wide penetration testing is now underway to proactively identify any residual vulnerabilities.
Business Continuity Maintained
Despite the severity of the breach, Bragg reports that its operations remain unaffected. All gaming services, including iCasino and sportsbook offerings across regulated markets, continue to function without disruption.
“While this incident is deeply concerning, we are confident in the rapid and thorough response initiated by our team,” a company spokesperson stated. “We remain committed to protecting our infrastructure, our partners, and most importantly, our players.”
Looking Ahead
As part of its response, Bragg has also launched mandatory security awareness training for all employees to reinforce best practices and prevent future incidents.
Cybersecurity analysts will continue working with Bragg to determine the full scope of the attack, improve system resilience, and maintain the trust of its users and stakeholders.
Bragg’s handling of the incident highlights both the evolving nature of cybersecurity threats and the importance of robust, responsive defense systems in the digital gaming sector.
Source: cybersecuritynews.com
The post Bragg Confirms Cyber Attack – Hackers Access Internal IT Systems appeared first on Gaming and Gambling Industry in the Americas.
The Institute for Gambling Regulation in Slovakia (IPRHH) has published the country’s first comprehensive report dedicated to illegal gambling. The study, titled The Black Book of Illegal Gambling, was officially presented at Bratislava’s Einpark and is now publicly available online.
The landmark publication explores the structure, mechanisms, and social impact of illegal gambling operations in Slovakia, with a particular focus on unlicensed online platforms. According to the report, these operators bypass national regulations, exploit vulnerable groups, and deprive the state of hundreds of millions of euros annually in lost tax revenue.
Key Findings From the Report
The study is based on a nationally representative survey conducted by IPRHH in cooperation with the Slovak Academy of Sciences. Among the most striking results:
-
23.7% of players – nearly 296,000 Slovaks – admitted to gambling on unlicensed platforms.
-
24.1% of players could not determine whether the sites they used were legal.
-
Younger users and those with lower levels of education were the most likely to engage in illegal gambling.
-
13.1% of users admitted to gambling illegally because they were listed in the national Register of Excluded Persons (RVO), which should block them from licensed gambling.
“These sites ignore every safeguard that licensed operators must follow,” explained Dávid Lenčéš, Executive Director of IPRHH. “There are no limits, no identity checks, and no protection against addiction. And if you lose money, you have no legal recourse.”
Why Players Choose Illegal Platforms
Survey respondents highlighted several reasons for using unlicensed gambling sites:
-
Higher bonuses (32.5%)
-
Better odds (29.5%)
-
Easier registration (29.1%)
-
Wider game selection (27.4%)
Shockingly, only 42.2% of players actively check for a Slovak license, while 43.2% cannot distinguish between legal and illegal gambling advertisements.
Policy Recommendations
The IPRHH warns that illegal gambling costs Slovakia hundreds of millions of euros each year, money that could otherwise support healthcare, education, and addiction prevention programs.
The institute recommends a multi-pronged strategy to combat illegal operators, including:
-
More effective blocking of unlicensed websites
-
Stronger cooperation with banks and payment providers to block transactions
-
A national public awareness campaign
-
Stable conditions for licensed operators who contribute to the economy
Lenčéš also cautioned against excessive taxation of legal operators:
“If governments dramatically increase taxes on licensed operators, they risk pushing players further into the illegal market. Regulation should protect the public, not unintentionally support criminal ecosystems.”
About IPRHH
The Institute for Gambling Regulation (IPRHH) was founded in 2024 to promote effective, transparent, and responsible gambling regulation in Slovakia. Led by Executive Director Dávid Lenčéš, former Chairman of the Slovak Gambling Regulatory Authority, the organization works to address modern challenges such as digitalization, illegal gambling, and player protection.
The full report, The Black Book of Illegal Gambling, is available for free download (in Slovak) here: Download Report. An English version is currently in preparation.
For international inquiries or interview requests, contact: [email protected]
The post Slovakia Publishes Groundbreaking Report on Illegal Online Gambling appeared first on European Gaming Industry News.
Latest News
Red Rake Gaming strengthens its expansion in Switzerland through partnership with 7Melons.ch
Red Rake Gaming, a leading provider of premium online casino content, announces its partnership with 7Melons.ch, the official online casino of the prestigious Grand Casino Bern, further strengthening its position in the regulated Swiss market.
7Melons.ch, launched in 2020 following the legalisation of online gaming in Switzerland, operates under an official Swiss concession (Konzession) and offers an authentic, safe, and fully licensed local experience. Backed by the strong reputation of Grand Casino Bern, the platform stands out for its commitment to player protection, secure transactions, and a mobile-optimised gaming environment.
As part of its growth strategy, 7Melons.ch is focusing on CRM automation, localised acquisition campaigns, and enhancing its VIP experience. The operator is investing in performance marketing, expanding its game portfolio, improving platform features, and building long-term brand equity, with the goal of becoming one of the leading names in Swiss online entertainment.
Nick Barr, Managing Director at Red Rake Gaming Malta, commented: “We are delighted to collaborate with 7Melons.ch and Grand Casino Bern to bring our top content to Swiss players. The platform combines the trust of a historic brand with a modern and secure digital experience, making it the ideal partner to expand our presence in this region. We are confident our games will deliver added value and exciting experiences for players in Switzerland.”
This collaboration reinforces Red Rake Gaming’s commitment to creating innovative content tailored to local regulations and designed for highly regulated markets. Players in Switzerland will have access to a wide and diverse game portfolio, featuring standout functionalities, interactive mini-games, and a safe, immersive gaming experience.
The post Red Rake Gaming strengthens its expansion in Switzerland through partnership with 7Melons.ch appeared first on European Gaming Industry News.
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