The French wagering enterprise FDJ announced a net profit of €1.08 billion ($1.3 billion) in the initial six months of 2021, despite reports earlier this week that the European Commission is examining its exclusive rights.
FDJ’s net profit in the first half of 2021 was €1.08 billion, an increase of 29.5% from €849 million in the first six months of 2020, which was affected by the COVID-19 pandemic restrictions.
The lottery operator attributed the accelerated growth in the second quarter to the European Football Championship and the reopening of pubs.
Total wagers reached €9.15 billion. Lottery wagers accounted for €6.87 billion of the total, up 18.9% year-over-year. Of the lottery wagers, €4.28 billion came from immediate-win lottery games, such as scratch cards, and the remaining €2.59 billion came from draw-based games.
Sports betting wagers also witnessed a significant increase, rising 109.0% from €1.1 billion in the first half of 2020 to €2.26 billion. Of these total wagers, €2.69 billion 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 a gross gaming revenue of €2.86 billion. FDJ’s contribution to public finances accounted for 31.3% of the gross gaming revenue, with net gaming revenue reaching €1.08 billion.
The operator’s total income was affected by expenses.
The most significant expense was the price of sales, reaching a total of €591 million, a rise of 34.0% compared to the same period in the previous year. Marketing and communications expenses amounted to €195 million, an increase of 32.6%. Other administrative costs totaled €98 million.
In summary, the group’s EBITDA for the first six months of the year was €261 million, a 50% increase compared to the first six months of 2020.
Amortization costs saw a decrease of €63 million, resulting in a total net operating revenue of €198 million, a year-on-year increase of 59.6%.
“The second quarter demonstrates that our business operations have returned to levels seen before the pandemic,” stated Stéphane Pallez, the CEO of FDJ.
“Assuming no new restrictive measures are implemented in response to the evolving health situation, the group anticipates maintaining a positive trajectory in the second half of the year and is optimistic about its business and performance prospects, while remaining committed to its responsible gambling model.”
This week, the European Commission announced an investigation into FDJ to determine whether the €380 million FDJ paid to retain its position as the nation’s sole retail and lottery gambling operator following its privatization contravened EU law.