A French gaming enterprise, FDJ, produced €1.08 billion ($1.3 billion) in net income during the initial six months of 2021. This occurred despite the European Commission’s announcement of an inquiry into its monopolistic position earlier in the week.
FDJ’s net income in the first half of 2021 rose by 29.5% compared to the same period in 2020. In 2020, revenue was €849 million due to the influence of COVID-19 pandemic restrictions.
The lottery operator attributed the accelerated increase in its second-quarter income to the European Football Championship and the reopening of pubs.
Total wagers reached €9.15 billion. Of this, lottery wagers accounted for €6.87 billion, a year-on-year increase of 18.9%. €4.28 billion of the lottery wagers came from instant-win lottery games, such as scratch cards, while the remaining €2.59 billion came from draw-based games.
Sports betting wagers also grew significantly, increasing from €1.1 billion in the first half of 2020 to €2.26 billion, a growth of 109.0%. €2.69 billion of these total wagers came from online or digital points of sale.
Of the €9.15 billion in total wagers, €6.29 billion was paid out to players as winnings. This resulted in gross gaming income of €2.86 billion. FDJ’s contribution to public finances accounted for 31.3% of gross gaming income, ultimately resulting in net gaming income of €1.08 billion.
The operator’s total income was impacted by expenses.
The price of goods sold made up the biggest part of spending, reaching €591 million, a 34.0% increase from the previous year. Marketing and advertising costs were €195 million, a 32.6% increase. Other administrative costs were €98 million.
In general, first-half earnings before interest, taxes, depreciation, and amortization (EBITDA) were €261 million, a 50% increase compared to the first half of 2020.
Depreciation costs dropped by €63 million, bringing total net operating income to €198 million, a 59.6% increase from the previous year.
“The second quarter shows that our business operations have returned to pre-crisis levels,” said Stéphane Pallez, CEO of FDJ.
“If there are no new restrictions related to the health situation, the Group expects to keep a good pace in the second half of the year and is confident in its business and performance prospects, while remaining committed to its responsible gambling model.”
This week, the European Commission declared an investigation into FDJ to determine if the €380 million FDJ paid to keep its exclusive retail and lottery gambling operator status in the country after its privatization broke EU law.
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