FDJ United (FDJU) Q2 2024 earnings summary

Executive summary

• H1 2024 revenue reached €1.43 billion, up 11% year-over-year and 5% at constant perimeter, with strong growth in France, gaming, and digital channels.

• Recurring EBITDA was €370 million, with a 25.9% margin, and adjusted net income rose 28% to €235 million, reflecting new calculation methods for dividend policy.

• Digital revenue surged nearly 40% (25% at constant perimeter), now representing about 15% of total revenue, driven by acquisitions and increased player numbers.

• The Kindred acquisition process is progressing on schedule, targeting completion by November 19, pending final regulatory approval.

• Strengthened CSR commitments, with responsible gaming targets met ahead of schedule and continued environmental actions.

Financial highlights

• Gaming revenue in France increased 7% to nearly €1.3 billion; instant games grew 7%, lottery revenue up 5% (8% excluding Amigo), and draw games up 2%.

• Sports betting and online gaming revenue up 15% (7% at constant perimeter), with digital sports betting and poker showing strong growth.

• International and payment services revenue rose to €129 million, mainly due to PLI integration.

• Net cash surplus stood at €616 million at end-June 2024, after €346 million free cash flow and €329 million in dividends paid.

• Basic and diluted EPS were €1.15, up from €0.95 in H1 2023.

Outlook and guidance

• Full-year 2024 guidance reiterated: group revenue growth around 8%, French gaming revenue up 5%, and recurring EBITDA margin around 24.5%.

• H2 expected to see normalized sports betting margins and higher OpEx, especially in advertising.

• Next financial update scheduled for October 17, 2024.

• Digital penetration and product innovation expected to drive future margin improvement.