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La Française des Jeux : Revenue up 4% in Nine Months: Acquisition of ZEturf Completed at the End of September Acquisition of PLI to Be Completed in Early November
La Française des Jeux (FDJ), France’s leading gaming operator, announces its revenue for the nine months to end September 2023.
Stéphane Pallez, Chairwoman and CEO of FDJ Group, said: “Our growth remains solid, with strong players’ demand, even though it has been affected by the low number of Euromillions high jackpot draws. At the same time, the completion of the acquisition of ZEturf at the end of September and the forthcoming closing of Premier Lotteries Ireland acquisition in November illustrate our strategy of internationalisation and diversification. We are delighted that the teams of these two operators are joining FDJ and that these operations will contribute to the Group’s sustainable and profitable growth.”
- Revenue to end September of €1,875 million, up 3.9% and 1.3% on a like-for-like basis
At the end of September, gross gaming revenue (GGR) stood at €4,808 million, stable compared with 2022. After €3,044 million in public levies, net gaming revenue (NGR)3 totalled €1,771 million, up 0.8% based on a 2.0% increase in stakes.
Including income from other activities of €103 million, up more than 10% on a like-for-like basis, Group revenue to end September 2023 came to €1,875 million, up 3.9%.
On a like-for-like basis, sales rose by 1.3%. It rose 4.6%, in line with the first half, excluding Euromillions, which was particularly affected by the low number of high jackpot draws, especially in the 3rd quarter, and excluding Amigo, which was relaunched at the beginning of June with a revised formula in accordance with the regulator’s decision.
In the 3rd quarter, revenue totalled €586 million, down 1% and 3% on a like-for-like basis.
- By distribution channel and activity
- By distribution channel
Stakes in points of sale increased 0.8% to €13,278 million, supported by sports betting and instant games, and despite Amigo and Euromillions impact.
Digital stakes are continuing to grow, driven by all businesses. They were up 10.6% to €2,011 million, a performance attributable in large part to the increase in the number of players. Excluding Euromillions, online lottery stakes rose by more than 12%. Online stakes account for more than 13% of total stakes.
- Lottery
Lottery revenue totalled €1,407 million down 1.2%, based on a slight increase in stakes, but up 3% excluding Amigo and Euromillions.
Driven in particular by the success of launches and relaunches, such as Carré Or in January and Numéro Fétiche in May, instant games stakes rose by more than 4%.
The almost 6% drop in the stakes for draw games is attributable to the lower number of high jackpot Euromillions draws (19 at 2023 September-end compared to 32 at 2022 September-end), particularly noticeable in the third quarter, and the full impact of the new Amigo draw launched at the beginning of June and in line with the decision of the French National Gaming Authority.
Excluding Euromillions and Amigo, draw stakes are up 1% and lottery stakes more than 3% compared with 2022, an “exceptional” year for draw games, especially Euromillions with stakes up by almost +20% to the end of September 2022. Overall, the appeal of this game remains strong, with stakes up by almost +10% compared with 2019, following its relaunch in the first quarter of 2020.
The discrepancy between growth in stakes and growth in revenue is mainly due to Euromillions, which has a high rate of conversion of stakes into revenue.
- Sports betting and online gaming open to competition
Revenue of sports betting and online gaming open to competition totalled €360 million, an increase of 9.3% in line with growth in stakes. The player payout ratio in the third quarter is very close to that at the end of June and that recorded at the end of September 2022.
Business growth, strong both at the point of sale and online, benefited from the continuing momentum of the FIFA World Cup at the end of 2022, despite a slightly less favourable football calendar in the 3rd quarter of 2023.
The acquisitions of ZEturf and Premier Lotteries Ireland (PLI) strengthen FDJ’s model
- ZEturf completes FDJ’s online gaming offering, making it the 4th largest operator in the French sports betting and online gaming open to competition, with a market share of over 10%
ZEturf is the 2nd largest online horse betting operator in France, with a market share of around 20%. This acquisition enables the FDJ Group to become the 4th largest competitive online gaming operator in France (sports betting, horse betting and poker), with a market share of over 10%. Finalised at the end of September, this acquisition has been consolidated in FDJ’s accounts since 1 October.
In order to benefit fully from the potential of the merger with ZEturf and the synergies within its online business open to competition, and in accordance with the commitments made to the French Competition Authority, FDJ will adopt a new organisation for this business.
With 2022 revenue exceeding €50 million, ZEturf:
– Doubles the revenue of FDJ’s online gaming business open to competition;
– And will have an accretive effect on the sports betting and online gaming open to competition BU’s contribution margin from 2025.
- PLI: First step in the international B2C lottery with strong prospects
The acquisition of Premier Lotteries Ireland, the Irish national lottery operator, is a major step in the deployment of the FDJ Group’s international strategy. On 3 October, the Irish lottery regulator gave the go-ahead for the deal, which is due to be finalised in early November, when PLI will be consolidated by FDJ.
In 2022, Premier Lotteries Ireland recorded gross gaming revenue (GGR) of €399 million and revenue of €140 million, with an EBITDA margin comparable to that of FDJ.
The strategic plan currently being drawn up jointly aims to accelerate PLI’s growth and increase its profitability, based on sharing best practice between the two operators in order to:
– Capitalise on FDJ’s experience to drive PLI’s instant games portfolio;
– Boost the player base for draw games;
– And continue to improve the digital experience for Irish players.
2023 Outlook
In Q4, the Group expects:
– In sports betting and online gaming open to competition, sales virtually unchanged, reflecting the continued momentum since the start of the year, with a high basis for comparison due to the FIFA World Cup at the end of 2022;
– And for the lottery, sales growth driven by non-Amigo draw games, with several events including the launch of the EuroDreams draw game, and by instant games.
For 2023 as a whole, FDJ is targeting revenue growth of around 5%, i.e. between 1.5% and 2% on a like-for-like basis, with a current EBITDA margin rate maintained at around 24% thanks to tight control of costs.
– At the end of July, the Group had announced 2023 revenue growth targets of over 5%, and over 3% on a like-for-like basis, with a current EBITDA margin maintained at around 24%.
The Group will also benefit from a high level of financial income, expected to almost double the figure recorded at the end of June, and reiterates its commitment to distribute between 80% and 90% of its consolidated net income.
The Group’s next financial communication
The Group will report its 2023 results on Thursday, 15 February 2024, before market opening.
Appendix
|
In millions of euros |
Q3 2023 |
Q3 2022 |
Var. |
|
|
|
|
|||
|
Stakes |
4,802 |
4,945 |
-2,9% |
|
|
o/w online stakes |
679 |
643 |
+5,6% |
|
|
|
|
|||
|
Revenue |
586 |
592 |
-1,1%* |
|
|
o/w lottery |
449 |
478 |
-6,0% |
|
|
o/w sports betting and online gaming open to competition |
103 |
97 |
+6,4% |
|
*-3.4% vs. Q3 2022 pro forma, including the acquisitions of Aleda and L’Addtion
Alberta
Octoplay secures conditional Alberta iGaming supplier approval from AGLC
Octoplay has secured conditional licence approval from the Alberta Gaming, Liquor & Cannabis Commission (AGLC), allowing the supplier to begin the process of offering its games catalogue to operators in Alberta.
The company said the approval positions it to launch in Canada’s newest regulated iGaming market when it opens in July. Octoplay is already live in Ontario with BetMGM and PokerStars, and has also entered the US through New Jersey and Michigan, according to the company.
“Alberta is one of the most strategic market openings on our 2026 roadmap. Entering it with the performance data we’ve built in Ontario, New Jersey, and Michigan gives us a strong foundation to be one of the first suppliers to partner with local tier-one operators as soon as the market opens,” says Ralitsa Georgieva, CEO at Octoplay.
“We’ve worked closely with the AGLC throughout the licensing process, and clearing the conditional stage reflects the strength of our compliance infrastructure,” says Martina Borg Stevens, Chief Legal Officer at Octoplay. “Our team has built a process that allows us to enter new regulated jurisdictions efficiently without compromising on the technical standards each regulator requires.”
Octoplay said Alberta adds to its regulated footprint, which it stated includes 17 operational markets: the United Kingdom, New Jersey, Michigan, Ontario, Italy, Spain, Sweden, the Netherlands, Denmark, Belgium, Greece, Romania, Malta, Slovakia, Finland, Brazil, and Georgia.
The post Octoplay secures conditional Alberta iGaming supplier approval from AGLC appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.
appointments
THNDR appoints former WorldWinner CEO Nancy MacIntyre as strategic advisor
THNDR has appointed gaming industry veteran Nancy MacIntyre, former CEO of WorldWinner, as a strategic advisor, the company said. MacIntyre will advise THNDR’s leadership team as it works to bring more operators onto its player-vs-player (PvP) skill games network.
MacIntyre has more than 25 years in gaming and digital entertainment. Most recently, she served as CEO of WorldWinner, a competitive skill-gaming platform that developed FanDuel’s skill gaming app, FaceOff. She has also held senior roles at LeapFrog, LucasArts, Atari, and Hasbro.
THNDR positions itself as a white-label skill games layer that operators including sportsbooks, DFS platforms, and lottery apps can integrate to drive engagement and earn revenue per game. The company said it has recorded 160m+ games played, a 99.99% fill rate, and 25+ partners live.
“Nancy didn’t just predict the rise of skill gaming, she led it. At WorldWinner she led efforts to take FanDuel FaceOff mainstream and proved this category works at scale,” said Desiree Dickerson, CEO of THNDR. “As we bring more Tier 1 operators onto our network, that is exactly the expertise we need. Having her in our corner makes everything we build sharper.”
“I have built games on almost every platform that mattered over the last 25 years, and PvP skill gaming is one of the most exciting categories in the market right now,” said Nancy MacIntyre. “THNDR has the team, the technology, and the lead. I am excited to help them turn that into mainstream, must-play games.” THNDR said it plans to share more on its competitive gaming roadmap in the coming months.”
The post THNDR appoints former WorldWinner CEO Nancy MacIntyre as strategic advisor appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.
Game Anatomy
Behind the Game Anatomy of a Strong Brand
At iGaming, dozens of solutions are behind the high conversion, retention, and LTV rates of the product: from UX and payment infrastructure to personalisation and constant hypothesis testing.
Behind the Game is a series of expert materials where N1 Partners team explains how successful iGaming products work from the inside.
In this issue, N1 Partners’ Product Line Manager will tell you how to identify a promising brand at the start, what distinguishes a strong product from an average one, and how to choose offers with maximum potential.
What distinguishes a strong iGaming product from dozens of similar offers in the market today?
Today, many products are focused on the rapid monetisation of the player. A strong product has a different approach: it is built around long-term value, player loyalty, and audience retention.
Personalisation, usability, and the ability of a product to adapt to the interests of a particular user play a key role.
Modern analytics and AI tools allow you to predict user behaviour more accurately, offer relevant mechanics, and create a more personalised gaming experience.
UX is equally important. In Tier-1 GEOs, even minor inconveniences can cost a player. If the user has to perform unnecessary actions or encounter an inconvenient interface, the probability that he’ll leave increases significantly.
What early signs show that a product has the potential to become a strong brand?
From the product’s point of view, two metrics are crucial: conversion and retention.
If a product consistently shows good player engagement rates and at the same time keeps the audience at or above market benchmarks, this is a strong signal of its potential.
An additional indicator is the team’s ability to regularly test new hypotheses and implement mechanics that expand the possibilities of interaction with the audience.
Practical criteria are also important for partners: the availability of in-demand payment methods for a specific GEO, high-quality localisation, a strong game library and a convenient user path.
A separate recommendation for affiliate teams is to independently walk the player’s path before launching traffic. This allows you to quickly identify the strengths and weaknesses of the product before scaling.
What is more important for long-term growth: constantly attracting new players or working with the existing base?
One cannot exist without the other.
Attracting new players remains a prerequisite for growth, but without strong retention and working with a loyal base, the product will not be able to show stable results over the long run. That is why the N1 Partners products have a high retention and players’ LTV, those are really crucial metrics to pay attention to.
A high churn leads to a situation where the operator constantly compensates for losses due to new traffic. This model becomes unprofitable both for the product itself and for partners working on RevShare.
That’s why long-term growth is built around retaining players and building a loyal audience that keeps coming back to the product.
What mistakes do new casino projects most often make in the early years of their work?
Many new projects begin to actively increase traffic even before they are convinced of the product effectiveness on test volumes.
Before opening large amounts of traffic, it is important to make sure that all key processes are working correctly: funnels, retention mechanics, payment infrastructure and user path.
Many problems arise due to flaws from the product’s side itself. Errors in payments, incorrect localisation, problems with the availability of functions or an inconvenient interface quickly affect conversion and retention.
For the player, such shortcomings become the reason for leaving even before he has time to get acquainted with the product.
How do you know that a player is returning because of the product itself and not just bonuses or individual games?
One of the key factors is emotional attachment to the product and the level of personalisation.
Bonuses can attract attention, but long-term loyalty is shaped by familiar mechanics, individualised interaction and high-quality communication with the user. This is especially noticeable in the VIP segment, where personal support, attention to the player and long-term relationships are of great importance.
A strong product is always based on treating players as people, not as a set of numbers in reports.
What metrics best show that a product will be successful at a distance?
Among the main indicators:
- repeated deposits;
- deposit funnel depth;
- Retention Rate;
- Churn Rate;
- technical stability of the product;
- key scenarios’ speed.
Special attention is paid to the transitions between deposits and the product’s ability to return players a week, a month or more after the first deposit.
How are the expectations of the players changing in 2026, and what is already considered a mandatory brand standard today?
A mandatory standard is perfect GEO localization, the most user-friendly interface, as well as brand reputation.
Another underestimated factor is the brand’s reputation. Products need to actively work with ORM (Online Reputation Management): monitor the brand’s reputation on feedback (for example, Trustpilot) and third-party sites and respond to comments and questions from players, forming loyalty.
N1 Partners pays special attention to this: the company systematically works with feedback from partners and players, maintaining the brand’s reputation on thematic websites.
What helps N1 Partners products stay competitive in Tier-1 GEOs?
Constant testing of new mechanics and flexibility in product development remains one of the factors.
N1 Partners team adheres to an approach in which new solutions are first tested under controlled conditions and only implemented on a larger scale after effectiveness confirmation.
Among the mechanics that have shown a good effect are Lucky Spin/LuckyBox, Puzzle Hunt and a number of other gamification solutions aimed at increasing player engagement and retention.
Deep audience segmentation and the development of specialised retention areas for different groups of players also play an important role.
If you had to choose a product for RevShare, which indicators would you look at first?
First of all, it is worth paying attention to:
- player retention;
- user path quality;
- the presence of errors and technical problems;
- payment infrastructure;
- the range of games;
- indicators of repeated deposits.
In the RevShare model, the key is how long a player remains active and how often they return to deposits.
What do partners most often underestimate when choosing a product to drive traffic?
Partners often start scaling a new product too early.
Even with a strong offer and good terms of cooperation, it is crucial to first check the actual performance of the product and only then proceed to scaling.
Another underestimated factor is the brand’s reputation. Before driving traffic to an offer, it is important to check player reviews, ratings on relevant sites, and the general perception of the product on the market.
If you had to launch a new brand from scratch today, which three things would you focus on first?
First of all, attention should be paid to three fundamental elements:
- a strong payment infrastructure for chosen GEO;
- a high-quality set of gaming providers and content;
- technical stability of the product and an optimized user path.
Even minor problems with download speed, payments, or registration can significantly reduce conversion and affect the further growth of the product.
The effectiveness of all subsequent marketing and product initiatives directly depends on the quality of these components.
To summarise, a strong iGaming product begins where the pursuit of short-term results ends. Attention to user experience, audience retention, localisation, and continuous product improvements allows brands to grow from a distance and turn the attracted traffic into long-term value.
If you are looking for brands with high LTV and Reg2Dep, join N1 Partners, a multi-brand affiliate program with 14+ casinos and betting brands in Tier-1 GEO with payouts up to €700 CPA and RevShare up to 55%.
Be number one with N1!
The post Behind the Game Anatomy of a Strong Brand appeared first on EE Gaming | Global iGaming & Tech Intelligence Hub.
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