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1. Company Snapshot

1.a. Company Description

La Française des Jeux Société anonyme operates lottery and online sports betting games worldwide.The company offers instant and draw games.Its brand portfolio comprises Loto, EuroMillions, Cash, Amigo, Joker, Bingo Live, Keno, Mission Patrimoine, and Parions Sport.


The company was founded in 1933 and is headquartered in Boulogne-Billancourt, France.

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1.b. Last Insights on FDJ

Breaking News: La Française des Jeux Société anonyme (FDJ) released its 2024 results, reporting strong performance. The company's revenue increased, driven by growth in betting and gaming activities. Notably, FDJ UNITED is implementing a multi-year action plan to offset the impact of tax increases on its business, particularly in France. The company is also providing its 2025 outlook, taking into account the tax increases and the action plan.

1.c. Company Highlights

2. FDJ United's H1 2025 Earnings: A Transitional Year

FDJ United reported revenue of EUR1.9 billion for H1 2025, a 2% decline year-on-year on a restated basis. The recurring EBITDA was EUR441 million, down 10%, with a margin of 23.6%, or 24.4% excluding the EUR14 million one-off impact of the employee share ownership plan. Adjusted net income was EUR222 million, down 5%. Earnings per share (EPS) came in at '1.31', in line with analyst estimates. The company's financial performance was impacted by the Kindred acquisition financing, resulting in a net financial loss of EUR37 million, and a EUR21 million one-off additional tax on large French companies.

Publication Date: Aug -04

📋 Highlights
  • Revenue Performance: H1 2025 revenue reached EUR 1.9 billion, down 2% year-on-year on a restated basis.
  • Recurring EBITDA: Recurring EBITDA was EUR 441 million, down 10%, with a 23.6% margin, or 24.4% excluding a one-off impact.
  • Net Income: Net income was EUR 136 million, impacted by a net financial loss of EUR 37 million and a one-off tax of EUR 21 million.
  • LSF Business Growth: LSF revenue grew 4% to EUR 1.3 billion, driven by a 6% increase in lottery revenue, with online penetration at 15%.
  • Kindred Integration: Kindred integration is on track, with deployment of KSP aiming for full product control by end-2026, supporting the group's full-year guidance.

Business Unit Performance

The LSF business unit revenue grew 4% to EUR1.3 billion, driven by lottery revenue growth of 6%. Online penetration is now at 15%. However, retail sports betting revenue was down 6% due to unfavorable sports results. OBG revenue was down 12% year-on-year on a restated basis, with a challenging comparable base due to Euro2024. Excluding the UK and Netherlands, OBG revenue grew 5%. The company expects to reduce the gap versus 2024 in Q3 and return to growth in Q4.

Kindred Integration and Guidance

The Kindred integration is on track, with the deployment of Kindred's proprietary Sportsbook Platform (KSP) aiming for full end-to-end product control by end-2026. The group reiterated its full-year guidance: stable revenue, recurring EBITDA margin above 24%, and a reduction in net financial debt of over EUR150 million. The effective tax rate is expected to be around 33% for the full year and below 30% in 2026 and beyond.

Valuation and Debt

With a P/E Ratio of 13.96, P/B Ratio of 4.68, and EV/EBITDA of 8.99, the company's valuation appears reasonable. The Net Debt / EBITDA ratio stands at 2.06, indicating a manageable debt burden. The company's net financial debt stood at EUR1.964 billion at the end of June 2025, up from EUR1.818 billion at the end of December 2024. The company remains confident in reducing net debt by at least EUR150 million year-on-year by year-end.

Outlook and Regulatory Environment

The company expects continued growth in lottery and sports betting, with a stronger growth in sports betting retail, and a slight slowdown in lottery growth due to a tax rate increase in France. The U.K. and Netherlands are expected to stabilize, with regulatory restrictions easing in H2. The company reiterates its full-year guidance, driven by a strong H2 pipeline, including new game launches, and cost rationalization at the holding level. Analysts estimate next year's revenue growth at 8.0%.

3. NewsRoom

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La Francaise Des Jeux SA (LFDJF) (FY 2024) Earnings Call Highlights: Strong Revenue Growth ...

Mar -11

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FDJ UNITED: Very Strong 2024 Results

Mar -06

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FDJ: Very Strong Performance in 2024

Feb -14

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CORRECTING and REPLACING: FDJ: 2025 Financial Communication Calendar

Jan -09

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FDJ Announces the Successful Placement of Its Inaugural Bond Issue for €1.5 Billion to Refinance Kindred's Acquisition

Nov -18

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FDJ Announces Its First Bond Issue

Nov -12

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FDJ: Conclusion of the European Commission's investigation

Oct -31

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FDJ: 2025 Financial Communication Calendar

Oct -28

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.87%)

6. Segments

Lottery - Instant Games

Expected Growth: 5.5%

La Française des Jeux Société anonyme's 5.5% growth in Lottery - Instant Games is driven by increasing popularity of digital scratch-off games, strategic partnerships with online gaming platforms, and effective marketing campaigns targeting a younger demographic. Additionally, the company's focus on innovation, such as introducing new game formats and features, has contributed to the segment's growth.

Lottery - Draw Games

Expected Growth: 5.8%

La Française des Jeux Société anonyme's 5.8% growth in Lottery - Draw Games is driven by increasing popularity of digital channels, successful marketing campaigns, and a growing player base. Additionally, the company's strategic partnerships and innovative game offerings have contributed to the segment's expansion.

Competitive Sports Betting and Online Games

Expected Growth: 7.2%

La Française des Jeux Société anonyme's 7.2% growth in Competitive Sports Betting and Online Games is driven by increasing popularity of online gaming, rising mobile penetration, and growing demand for digital entertainment. Additionally, strategic partnerships, innovative product offerings, and effective marketing strategies contribute to the segment's growth.

Other Activities

Expected Growth: 4.2%

La Française des Jeux Société anonyme's 4.2% growth in Other Activities is driven by increasing demand for digital services, expansion of online gaming platforms, and strategic partnerships. Additionally, the company's focus on innovation, such as the development of new games and services, has contributed to this growth.

Other - Competitive Sports Betting and Online Games

Expected Growth: 6.8%

The 6.8% growth in Other - Competitive Sports Betting and Online Games from La Française des Jeux Société anonyme is driven by increasing popularity of online gaming, rising demand for competitive sports betting, and strategic partnerships to expand offerings. Additionally, investments in digital platforms and user experience enhancements have contributed to the segment's growth.

7. Detailed Products

Lottery Games

La Française des Jeux offers a range of lottery games, including EuroMillions, Lotto, and Keno, allowing players to win large jackpots and prizes.

Sports Betting

La Française des Jeux provides a sports betting platform, allowing users to place bets on various sports and events, including football, tennis, and horse racing.

Instant Games

La Française des Jeux offers a range of instant games, including scratch-off tickets and online games, providing instant wins and prizes.

Digital Games

La Française des Jeux provides a range of digital games, including online slots, poker, and other casino-style games, offering a variety of gaming experiences.

Bingo

La Française des Jeux offers online bingo games, allowing players to participate in live bingo sessions and win prizes.

8. La Française des Jeux Société anonyme's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for La Française des Jeux Société anonyme is medium due to the presence of alternative forms of entertainment and leisure activities.

Bargaining Power Of Customers

The bargaining power of customers for La Française des Jeux Société anonyme is low due to the lack of negotiating power of individual customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for La Française des Jeux Société anonyme is medium due to the presence of multiple suppliers and the company's significant purchasing power.

Threat Of New Entrants

The threat of new entrants for La Française des Jeux Société anonyme is high due to the relatively low barriers to entry in the gaming and lottery industry.

Intensity Of Rivalry

The intensity of rivalry for La Française des Jeux Société anonyme is high due to the presence of several established competitors in the French gaming and lottery market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.95%
Debt Cost 4.60%
Equity Weight 73.05%
Equity Cost 7.53%
WACC 6.74%
Leverage 36.89%

11. Quality Control: La Française des Jeux Société anonyme passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
DS Smith

A-Score: 5.7/10

Value: 8.3

Growth: 3.7

Quality: 3.8

Yield: 4.4

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
SBM

A-Score: 5.7/10

Value: 4.7

Growth: 6.7

Quality: 6.2

Yield: 1.2

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
La Française des Jeux

A-Score: 5.6/10

Value: 4.4

Growth: 7.1

Quality: 6.2

Yield: 7.5

Momentum: 2.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
NEXT

A-Score: 5.6/10

Value: 1.8

Growth: 5.7

Quality: 6.7

Yield: 4.4

Momentum: 7.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
IGT

A-Score: 5.0/10

Value: 5.7

Growth: 2.2

Quality: 4.6

Yield: 8.1

Momentum: 2.5

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Redrow

A-Score: 4.9/10

Value: 6.7

Growth: 3.8

Quality: 7.4

Yield: 4.4

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

30.12$

Current Price

30.12$

Potential

-0.00%

Expected Cash-Flows