- La Francaise des Jeux (FDJ) reported its full-year revenue for the fiscal year as €3.07 billion, slightly surpassing estimates of €3.04 billion.
- The company’s recurring EBITDA stood at €792 million, exceeding forecasts of €757 million.
- FDJ aims to fully counter the impact of increased taxes by the year 2027.
- For 2024, FDJ’s revenue will include the integration of Kindred from October 11, based on the segments of Kindred that FDJ retains.
- On a pro forma basis, assuming Kindred had been part of FDJ since January 1, the group revenue is projected to be nearly €3.8 billion, with an EBITDA margin around 25.5%.
- New betting and gaming levies in France are expected to reduce FDJ’s revenue and recurring EBITDA by approximately €45 million in fiscal year 2025, with the total annual impact reaching around €90 million.
- Analyst recommendations include 6 buys, 2 holds, and 2 sells for FDJ’s stock.
La Francaise des Jeux on Smartkarma
Analyst coverage of La Francaise des Jeux on Smartkarma by the Value Investors Club indicates a bullish sentiment towards the company. In their research report titled “Francaise De Jeux (FDJ) – Monday, Sep 9, 2024,” the analysts highlight FDJ as a high-quality, low-cyclical business with a government-granted monopoly in France and ownership of the Irish lottery. Despite impressive cash flow and EBITDA growth, the share price has stagnated for four years. The recent acquisition of Kindred at an attractive price is expected to enhance FDJ’s prospects. The company is viewed as trading at a reasonable multiple with consistent organic growth opportunities.
A look at La Francaise des Jeux Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
La Francaise des Jeux, a company specializing in lottery services and gaming equipment in France, shows a promising long-term outlook based on the Smartkarma Smart Scores. With a strong resilience score of 5, the company is positioned well to weather market challenges and economic uncertainties. Additionally, La Francaise des Jeux scores high on both the Dividend and Growth factors, indicating a positive outlook for income distribution and potential for expansion. The company also demonstrates solid momentum, which suggests ongoing positive performance in the market.
Overall, the Smartkarma Smart Scores paint a favorable picture for La Francaise des Jeux, highlighting its resilience, dividend potential, growth prospects, and market momentum. These factors combined indicate a promising future for the company within the gaming and lottery services industry in France.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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