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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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Interviews
Scaling With Purpose: RedCore’s Tech Vision Explained
Reading Time: 7 minutes
At SiGMA Central Europe in Rome, European Gaming Media sat down with Yevhenii Yankovyi, Vice President of Technology and Deputy CTO at RedCore, for a deep look into what truly powers RedCore’s large-scale engineering operations.
RedCore is known for innovating at enterprise level, yet moving with the agility of a fast-growing tech company. In this conversation, Yevhenii breaks down how the organization manages that balance: how engineering teams maintain both speed and reliability, how automation empowers creativity, and why culture must remain a daily practice rather than a one-time achievement.
Can you introduce yourself and RedCore’s approach to engineering at scale?
Sure. My name is Yevhenii, I’m the Vice President of Technology at RedCore and Deputy CTO. RedCore is a large company with many products and projects, so everything we do operates at a significant scale. And when people hear “enterprise-level engineering,” the usual assumption is that scale automatically means slowness: slow decision-making, slow implementation, slow testing, slow time to market.
That’s the mindset we challenge. We don’t believe speed and stability are opposites. In our experience, at this level of complexity, the two actually reinforce each other. When you build the right processes, the right technical foundations, and the right organizational structure, speed becomes a natural result of stability – not something that contradicts it.
We plan for scaling from day one. For us, that’s a fundamental requirement. We build products with the expectation that they will grow, and growth means scale. So we design with that in mind from the very first line of architecture.
But that doesn’t mean disappearing for six or ten months to design the “perfect” system. That’s the common mistake people make when they hear “design for scale.” Our approach is different: we keep the long-term vision in mind, but we move fast, iterate, and make sure the product can evolve without slowing the team down. Stability and speed working together – that’s the engineering culture we build at RedCore.
How does RedCore balance speed and stability in daily engineering?
I will explain this with a simple metaphor: think about a car. Everyone talks about acceleration and top speed, but none of that matters if you can’t take a corner. Speed alone is not the winning formula – you also need control.
That’s exactly how we look at engineering at RedCore. We want to accelerate, make decisions quickly, and develop fast. But we also need the ability to slow down at the right moment, change direction, and stay agile. Balancing speed with stability is the only way to move at scale.
There are many layers to this – it’s a topic I could talk about for days – but in a nutshell:
at a big scale, you must have strong standards, clear policies, and a high level of automation. We rely heavily on automation: infrastructure as code, CI/CD pipelines, automated testing, and all the tools that remove repetitive, routine work from engineers’ daily lives. When the routine disappears, people can focus on what humans actually do best: creativity, problem-solving, and innovation.
However, automation doesn’t build the software for you. It creates a safety net. It catches mistakes, guards quality, and supports engineers when their creativity pushes boundaries. In other words: tools give freedom, and also protect that freedom.
And of course, this includes AI and many other modern tools. We use whatever helps us keep the balance: give people space to think, create, and experiment, while ensuring the system stays stable, predictable, and high-quality.
How does RedCore’s management keep teams aligned yet fast?
First of all, we provide clear goals. As I mentioned earlier, we always design for scale from day zero – but you can only do that if you know exactly what you’re building, for whom, and why. We have a very strong business team that understands the market and what needs to be delivered. The technology team works side by side with them, reinforcing them.
Once the goals are clear, we begin small. If you try to build a huge system from the beginning and get it wrong, you create a nightmare: something no one can support, change, or grow. Complexity grows exponentially, and humans don’t think exponentially; we think linearly. That’s where companies often get lost.
So we avoid that by validating early and validating often. We start with small steps, keep a close eye on every direction we take, and confirm that what we’re building is truly needed by the market. When we see that the direction is right, then we scale – and by that point, the foundation is already in place. It’s like preparing a launchpad so that when the time comes, the team can accelerate immediately.
We build block by block and work in iterations. We take a small team – one, two, maybe three people – and let them experiment for a week. We test the idea fast, get quick feedback, and bring it to the business side: “Do you like it?” If the answer is yes, then we continue, still following all the proper engineering practices before anything goes into production.
This constant loop between business and technology keeps everyone aligned. We give feedback, we receive feedback, and we move together. That’s how we stay both fast and coordinated, always ready to scale when the direction is confirmed.
How does automation empower engineers without slowing them down?
When we talk about automation, we’re really talking about optimization at scale. It doesn’t make sense to over-engineer small things, but at the scale we operate, the cost efficiency and speed gains are enormous. And people often assume that big systems and automation automatically slow everything down. For us, it’s the opposite.
The tools we introduce are not meant to tie engineers’ hands with bureaucracy. We don’t force strict guidelines or heavy processes that kill creativity. Our tools exist to help: to prevent mistakes, to collect feedback quickly, and to give teams the shortest possible path from idea to validation.
Here’s a simple example: we start experimenting with a small feature. We build a tiny prototype to see if the idea works. If it’s promising, the next step is testing, pipelines, deployment – all the things that normally take time. In many companies, engineers would try to do all of this manually because “building the tools will take too long.” But with us, the tools are already there. The infrastructure, the CI/CD, the automation – everything is ready to use. Our engineers are essentially customers of this internal platform that supports fast, safe delivery.
We have many different teams that have different great ideas. If one team tries something new and it works better, great – we learn from it. If another team has a different approach because of product specifics or release schedules, that’s fine too. We give freedom to the teams to work, share their experiences, and then scale.
Of course, there are non-negotiables. When it comes to security and data privacy there is zero tolerance. These are areas where strict rules are absolutely necessary. I always tell the security people: everyone should be a little afraid of you, because these things must be perfect. But outside those critical areas, we don’t impose rules that slow teams down. We experiment, gather feedback, adjust, and keep improving.
We’re constantly researching, experimenting, and customizing our automation depending on the product and the market. But when it comes to system design, we don’t reinvent the wheel. We choose globally recognized tools and industry-validated technologies. So yes, we empower engineers with automation and the right tools, built on a solid, modern foundation.
How does culture work for you – is it an achievement, or part of your routine?
Culture is a critical element in balancing speed and stability. Tools and processes matter, but culture is what truly empowers a team and keeps everything together at scale.
For us, culture starts with giving people freedom: the freedom to experiment, the freedom to make mistakes, and the freedom to challenge ideas. We don’t want engineers to be afraid of trying something new. We build a culture where mistakes are acceptable and manageable. If we try something and it doesn’t work, great – now we know better. We learn, adjust, and move on.
We encourage ideas from every level. Some of our most interesting insights come from developers who notice something while working on a small task. They can come directly to me or to the CTO and say, “I see a problem here.” It’s completely okay. A small detail in one corner of the system can become a huge issue at scale, so we listen. That’s how we avoid blind spots.
We also give teams autonomy. Small teams can make their own decisions and experiment in their own ways. If different teams want to do things differently, that’s fine – as long as they validate everything and share their findings. We want people to help each other and to understand that even top engineers have ups and downs. Even senior management makes mistakes. I constantly ask my team: “If I make a wrong decision, tell me.” It’s not about transparency as a buzzword – it’s about behavior. People observe how you respond, and they learn from that.
The biggest mistake any leader can make is demotivating people. We work with intelligent, educated, passionate professionals. They want to contribute. You just need to give them the space to do it. That’s when you see people shine and bring forward brilliant ideas.
As for the question of whether culture is an achievement or a routine – for us, it’s definitely a routine. People often talk about “building a strong engineering culture” as if it’s a success. We treat it as a routine as a process. Culture is the daily interactions between people in an organization. Those interactions change: people come and go, someone has a bad day, someone disagrees with a decision. Culture is shaped every day by how we communicate, how we argue, how we respect each other, and how we resolve differences.
Going to a colleague in the kitchen and asking, “Hey, what do you think about this?” – that’s culture. Anyone can talk to anyone, openly. And when engineers realize they can make a real impact, that they are heard, that they can influence the product — that motivates them. That’s what keeps the culture alive.
How do you balance standards with creative freedom?
The first thing is that we don’t pressure people. We set strict standards only where they are truly critical for the business. Security, data privacy, stability at scale – those areas demand clear rules. But everywhere else, we try not to push people. And when we do introduce a standard or guideline, we listen carefully to feedback. If the team tells us we made the wrong call, that’s okay – we rethink it and look for better approaches.
The second thing is that as the projects grow, the teams scale as well. Even in the design phase, we don’t start with a huge team. I prefer a small group: one key person who leads the design initiative, plus two or three contributors who constantly review, test, question, and give feedback. If three or four people align in one direction, that’s a good signal we’re on the right track. Then we take that proposal to a larger group – people who might use it or need it.. We refine it again based on their input. The idea evolves, but we don’t need to start from the beginning.
Finally, when we have a strong direction, we present it to the entire tech team. And even then – even if top management already supports the decision – it’s completely acceptable for a mid-level developer to raise concerns. Maybe they’ve seen something before, maybe they read an article, maybe they faced a similar issue. We listen, because at scale, one overlooked detail can cost millions.
So once again, balancing standards with creative freedom is about scaling the processes step by step: we start with a small group, validate in small cycles, and then scale the decision up gradually. This approach protects creativity, ensures high quality, and keeps us aligned. And combined with our culture, it makes the process both fast and safe.
The post Scaling With Purpose: RedCore’s Tech Vision Explained appeared first on European Gaming Industry News.
Alinda van Wyk
Super Group Comments on United Kingdom Autumn Statement
Reading Time: < 1 minute
Super Group (SGHC) Limited, the parent company of Betway, a leading online sports betting and gaming business, and Spin, the multi-brand online casino, notes the United Kingdom Autumn announcement:
In this Autumn Statement, the UK government announced increases to gambling duties: Remote Gaming Duty (iGaming) will rise by +19 percentage points (from 21% to 40%), effective April 2026 and General Betting Duty (Online Sports Betting) will rise by +10 percentage points (from 15% to 25%), effective April 2027.
Neal Menashe, Chief Executive Officer, stated: “Super Group supports the reasonable taxation of online gaming in the UK. We rely on the government to ensure that today’s very substantial increase should be paired with robust and strict enforcement against non-paying offshore operators. This is essential to protect the regulated sector’s investment in jobs, technology, and responsible gaming in the UK.”
Alinda van Wyk, Chief Financial Officer, commented: “Going forward, we estimate that these new tax increases will have an impact of approximately 6% to our 2026 Group Adjusted EBITDA. However, Super Group already has several mitigation levers in motion, which are intended to offset the tax impact. Our strategy remains unchanged: sustainable growth and disciplined capital allocation. We don’t expect today’s news to alter our long-term trajectory nor our capital return priorities.”
The post Super Group Comments on United Kingdom Autumn Statement appeared first on European Gaming Industry News.
Andy Greaves
TVC Completes AV Installation at ScotBet
Reading Time: 2 minutes
TVC Technology Solutions has completed a comprehensive AV installation for leading Scottish bookmaker ScotBet. Reinforcing how cutting-edge audiovisual technology can dramatically elevate customer engagement, brand impact and operational flexibility in betting shops, ScotBet is another in a list of betting shop makeovers for TVC, including a significant number of independent bookmakers throughout the UK.
The project saw TVC partner with ScotBet to modernise digital infrastructure across a number of stores, delivering high-quality visuals, streamlined content distribution and a unified signage platform. The aim was to create a premium experience that draws in customers, enhances dwell time, unlocks in-shop promotional opportunities and underpins ScotBets’ competitive positioning.
TVC’s campaign started with a deep dive into ScotBet’s existing estate, identifying inconsistent screen sizes, dated display technologies and poor content manageability. Working alongside ScotBet’s retail operations and brand teams, TVC created a future-proof AV design plan encompassing ultra-slim large format displays in key customer zones, dynamic digital signage driven by branded content and a centralised control system for roll-out calability.
In each store, TVC installed industry-leading large-format commercial LCD and LED displays, including high-brightness 75″ panels in customer-facing zones, complemented by multiscreen TV gantries above key counters to deliver live odds, race streams and promotional content. These displays were mounted via low-visual-impact brackets to preserve the sleek interior design while maintaining full service access. The project also included a dedicated network of digital signage screens in foyer spaces, driven by the MySign digital signage platform. This enabled ScotBet to push up-to-the-minute messages and odds, event-based campaigns and third-party partnerships with minimal delay.
What sets the TVC-ScotBet collaboration apart from a typical AV and digital signage installation is the seamless integration of content and infrastructure from a single company.
Beyond hardware, TVC delivered a tailored content-creation service, to produce a range of dynamic content. This included templated campaign animations, in-store clock-in of live odds tickers, game-day social-feed overlays and fast-paced screen-fillers that mirror the fast-moving world of wagering.
Andy Greaves, sales director at TVC, said: “Our employee-owned structure means everyone at TVC is passionately behind every project. We instantly become partners to our betting shop customers, rather than just supply vendors, and the ability to supply and install an end-to-end video, signage and content integration seamlessly makes for a smooth project from start to finish.”
TVC brings nearly three decades of experience to the AV installation in hospitality, leisure, gambling, gaming and retail spaces. The portfolio spans F1 gaming arcades, bars and pubs, hotels, care homes, boardrooms and retail spaces, with specialist knowledge in the complexities of high-traffic public environments and the regulatory demands of leisure and betting retail. From bespoke mounting solutions in confined shop-floor footprints to full networked AV infrastructures across multiple sites with cloud-integrated content, TVC tailors its system design to each customer’s requirements and backs each project with ongoing service and maintenance support.
“With surveys showing increased dwell time, engagement and sales through digital signage advertising, and with many better retailers seeing over 10% of their revenue attributed to virtual and e-sports, now is the time to maximise your AV impact and ROI,” said Greaves.
The post TVC Completes AV Installation at ScotBet appeared first on European Gaming Industry News.
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