FDJ United (FDJU) Q3 2024 earnings summary

Executive summary

• Revenue reached EUR 2,097 million at end-September 2024, up 12% year-over-year and 6% at constant perimeter, driven by strong lottery and sports betting performance.

• Online/digital revenue surged 39%, now representing 15% of total revenue, reflecting strong online momentum and organic growth.

• Upward revision of 2024 guidance: revenue growth now expected at nearly 9%, recurring EBITDA margin at 25%.

• Successful acquisition of Kindred, with 91.77% ownership and full consolidation expected by early 2025, creating a leading European gaming group.

• Kindred to exit non-regulated markets by year-end, aligning with strategic focus.

Financial highlights

• Gaming revenue in France rose 8% to EUR 1,907 million; lottery up 7% (9% excluding Amigo), sports betting and online gaming up 13%.

• Online revenue: +39% year-over-year, representing 15% of total revenue.

• Point-of-sale revenue increased 9% overall, nearly 3% in France.

• Other activities, including international and payment services, posted EUR 190 million revenue, up from EUR 108 million, mainly due to PLI integration.

• Q3 2024 revenue was EUR 669 million, up 14.2% year-over-year.

Outlook and guidance

• 2024 revenue growth guidance raised to nearly 9% (from 8%), with France exceeding 5%.

• Recurring EBITDA margin expected at 25% (previously 24.5%).

• Including Kindred from October, 2024 revenue growth would be around 16%, with recurring EBITDA margin of 25%.

• Q4 expected to show low growth in lottery and a decrease in sports betting and online gaming revenue due to tough comps and lack of exceptional events.

• Like-for-like revenue growth expected at 4% for full year.