La Française des Jeux (FDJ), a French gambling operator, has released its preliminary financial report for the fourth quarter and the entire year 2023. FDJ reported revenue of €747 million for the fourth quarter of 2023, a significant 13.8% rise over the same time in the previous year. This increase was ascribed to an upsurge in lottery revenue as well as the expansion of online gaming and sports betting.
The quarterly lottery revenue amounted to €531 million, exhibiting a substantial 7.8% rise. Meanwhile, sports betting and online gaming contributed €158 million, reflecting a remarkable 14.9% expansion in this sector.
These financial results were revealed in the wake of FDJ’s recent proposal to acquire Kindred Group for €2.6 billion. Kindred has the opportunity to respond to the offer between mid-February and mid-November 2024. The proposed valuation of Kindred stock stands at a 24% premium over the closing price on January 19, 2024, at SEK 130 ($12.43) per share.
On the same day, Kindred reported its Q4 results, having a total revenue of £312.9 million ($397.7 million). Notably, the underlying EBITDA surged by 45.3% from Q4 2022, with the full-year EBITDA reaching £204.5 million, reflecting a remarkable 58.3% increase from the previous year.
Kindred’s Board also emphasized in the report that, in the event of acceptance of the offer, the company would prioritize safeguarding its employees and management, acknowledging the valuable talent they bring to company operations.
For the entire fiscal year, FDJ’s total revenue reached €2.62 billion, marking a 6.5% uptick from the previous year. A notable contributor to this growth was the company’s online business ventures, which saw an 18.8% increase over the year, contributing 13% to FDJ’s annual revenue. The recurring EBITDA for the year amounted to €675 million, resulting in an EBITDA margin of 25.1%. A comprehensive report, providing a detailed breakdown of the company’s 2023 earnings, is expected to be published after auditing on Thursday, February 15.
