La Française des Jeux (FDJ), a major French operator, has published a half-year revenue report in the latest news on the lottery sector. In spite of the monopoly accusations and ongoing investigation from the European Commission, FDJ has shown an outstanding result in H1.
The lottery and betting company reports a 27.5 percent year-on-year revenue growth, which amounts to €1.08 billion by the end of June 2021. In the half-year report, FDJ claims that the lifting of the lockdown and the increased activity during the sports events, namely the EURO 2020 championship, are the main reasons for the revenue rise.
The number of lottery stakes, in particular, increased by 19.1%, reaching €6.88bn in H1.
FDJ has also provided gross gaming revenue and net gaming revenue ratios of the lottery sector:
GGR – €2.36bn, a 20.6% year-on-year growth;
NGR – €805m, an 18.9% year-on-year increase.
Overall, the lottery contribution margin spiked in the first half-year of 2021, reaching €298m and 36.9% of the total FDJ’s revenue. The margin lever increased due to the lower advertising costs and a higher level of online lottery sales in H1 2021.
Why did FDJ’s lottery sales spike in H1?
According to FDJ’s report, the lottery sales were comprised of instant and draw lottery games with the following sales numbers in the first half of 2021.
Type of the lottery game
Sales in H1 2021
Sales in H1 2020
Total lottery sales
As seen from the data, the increase in the lottery stakes was driven by the sales of instant games. FDJ states the good perception of new products and the strong performance of best-selling games as the main reasons.
The sales of draw games and the popular Amigo game, in particular, were affected by the closedown of bars during the large part of 2021. In late June, the heavily declined sales of the Amigo game, however, returned to a level of the corresponding period in 2019.
The 17% growth in draw games sales during H1 was due to the success of the EuroMillions jackpot and the Loto game, which benefited from the successful new formulas and long gaming cycles.
The online sector continues to grow drastically, reaching circa 11% of total lottery sales in H1. The digital lottery sales increased by more than 50%, compared to the corresponding period in 2020, amounting to €700m in the first half of 2021. FDJ states that the main reason for the growth is the increased number of online players. The company predicts a €1.5bn in total sales of online lottery by the end of 2021.
FDJ’s outlook for the H2 2021
In the report, FDJ also outlines the company’s prospects for the rest of 2021. The Group expects to maintain good results for the H2 and is going to increase its advertising expenses.
FDJ plans to reach the following results by the end of the 2021 fiscal year:
€18.8 in total stakes;
€2.2 in revenue.
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