Solid Performance of the FDJ group

Regulatory News:

La Française des Jeux (FDJ) (Paris:FDJ), France’s leading gaming operator, announces its Q3 2022 revenue and its outlook for 2022.

Stéphane Pallez, Chairwoman and CEO of the FDJ Group, said: "The strong momentum recorded by the Group at the beginning of the year continued into the third quarter. We are particularly pleased with the return of our point-of-sale network to a healthy business dynamic, with quarterly stakes up by 6%. Our digital business continues to attract a growing number of players, almost 5 million. The good performance expected for the full year reflects the relevance of our strategy, which is based on these two distribution channels, and confirms our long-term responsible growth model.”

In Q3 2022, revenue grew by 12% to €529 million, based on growth of 9% in stakes

- For lottery games, the increase in revenue (+14% to €478 million) was driven by that of stakes (+11%), with:

• Draw games stakes up 17% to €1,629 million, benefiting from a much higher number of high Euromillions jackpots.
• Instant game stakes up 7% to €2,379 million, with the success of marketing initiatives, notably launches and relaunches such as Cash at the beginning of the year, the X10 and X20 games at the end of June, and the fifth edition of the Mission Patrimoine game at the end of August.

- In relation to sports betting, the stability of revenue (€97 million) and stakes is attributable to a high 2021 basis of comparison, with the semi-finals and finals of the UEFA Euro 2020 football tournament in July. The 9 % stakes growth recorded over August−September reflects the good momentum driven by sports news.

- Stakes were up across all distribution channels:

• +6% in points of sale, to €4,302 million, reflecting the network's return to normal and the good intrinsic momentum of games.
• +35% online, to €643 million, or 13% of total stakes, with sustained growth in both business segments, with the number of players of online lottery games continuing to rise sharply.

- Revenue from other activities increased by €3 million to €18 million.

At the end of September, 9M revenue up 12% to €1,805 million, with stakes up 9%

- For lottery games, the increase in revenue (+16% to €1,424 million) was in line with that of stakes (+15%).
- In relation to sports betting, the difference between the change in revenue (-3% to €329 million) and that of stakes (-8%) reflects a low player payout ratio at the beginning of the year, a situation that might change with the FIFA World Cup at the end of the year.
- Revenue from other activities was €52 million (+€7 million).

2022 outlook above the forecasts at the beginning of the year

The performance up to the end of September was better than the Group's forecast, after a first six months of the year in which results were amplified by a basis of comparison affected by the health crisis in the first six months of 2021.

The Group's business activity will benefit from the FIFA World Cup in Q4 but given the high basis of comparison base for lottery games at the end of 2021, with several weeks of high jackpot draws, FDJ expects its revenue in the second half of the year to be up 6%.

As such, for the full year, FDJ is now anticipating:

• Revenue growth of more than 8%,
• EBITDA margin close to 24%.

For the record, the FDJ Group initially forecast 2022 full year revenue growth of nearly 5% with an EBITDA margin over 23.5%.

The Group's next financial communications

- FDJ will hold an Investor Day on Thursday 17 November 2022 on its medium-term financial and non-financial strategy and objectives.
- FDJ will report its 2022 results on Wednesday 15 February 2023 before market opening.

Appendices

* Stakes reflect wagers by players, and do not constitute the revenue of the FDJ Group
** Mainly scratch games (point of sale and online)

About La Française des Jeux (FDJ Group)

France’s national lottery and leading gaming operator, the #2 lottery in Europe and #4 worldwide, FDJ offers secure, enjoyable and responsible gaming to the general public in the form of lottery games (draws and instant games) and sports betting (ParionsSport), available from physical outlets and online. FDJ’s performance is driven by a portfolio of iconic and recent brands, the #1 local sales network in France, a growing market, recurring investment and a strategy of innovation to make its offering and distribution more attractive with an enhanced gaming experience.
FDJ Group is listed on the Euronext Paris regulated market (Compartment A – FDJ.PA) and is included in indices such as the
SBF 120, Euronext 100, Euronext Vigeo 20, EN EZ ESG L 80, STOXX Europe 600, MSCI Europe and FTSE Euro.

For more information, www.groupefdj.com

¹ Above €75m for Euromillions and €8m for Loto.

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