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La Française des Jeux (FDJ) announces its results for the first half of 2020
The good momentum in stakes seen in the early part of the year (increase of 5% until mid-March) was halted by the consequences of the Covid-19 epidemic (decline of nearly 60% over the two months of lockdown). The gradual recovery since the lifting of lockdown in mid-May has accelerated with the gradual resumption of sporting competitions, including most of the national football championships in Europe, and the return of Amigo on 8 June. As such, the decline in stakes was limited to 18% over the half-year compared with the first half of 2019. They totalled €6.9 billion, breaking down as:
- Lottery stakes down 13% at €5.8 billion:
- Of which -15% for draw games to €2.2 billion and -11% for instant games to €3.6 billion;
- A 50% increase in online stakes to €0.5 billion.
- Sports betting stakes down 39% at €1.1 billion.
- Half-year revenue totalled €849 million, down 15% on an adjusted basis,1 and EBITDA amounted to €174 million, a margin of 20.5%.
- For EBITDA, the mechanical impact of the decline in activity was partially offset by the implementation of a large part of the savings plan of more than €80 million for 2020.
- From mid-June the Group has returned to an overall level of activity comparable with that of 2019. However, in view of the many uncertainties that remain, the Group does not communicate any business or earnings forecasts for the financial year 2020 as a whole. However, it should be borne in mind that the EBITDA margin for the second half of 2019 benefited from exceptional long lottery cycles, as well as unexpected sporting results, which reduced the player payout ratio in the sports betting segment.
Stéphane Pallez, Chairwoman and Chief Executive Officer of FDJ, said: “The Group’s strong mobilisation from the onset of the health crisis and a swiftly implemented cost-cutting plan have limited the impact on the first-half results. For several weeks, we have been recording stakes at a level comparable with that of 2019. Our strategic orientations and the strength of the FDJ model have been confirmed, and we continue to invest to support the development of all our activities.”
The 2019 data used for the following analyses have been adjusted to reflect the new tax regime that came into force on 1st January 2020 and to consolidate Sporting Group over a full year (but without adjustment for long lottery cycles)
Key figures (in millions of euros)
|
30 June |
30 June 2019 adjusted |
Chg. vs |
30 June 2019 |
Chg. vs |
|
|
Stakes |
6,898 |
8,454 |
(18%) |
8,420 |
(18%) |
|
Revenue* |
849 |
995 |
(15%) |
944 |
(10%) |
|
Recurring operating profit |
124 |
165 |
(25%) |
136 |
(9%) |
|
Net profit |
50 |
|
|
96 |
(48%) |
|
|
|
|
|
|
|
|
EBITDA** |
174 |
208 |
(16%) |
177 |
(2%) |
|
EBITDA/revenue |
20.5% |
20.9% |
|
18.8% |
|
* Revenue: net gaming revenue and revenue from other activities
** EBITDA: recurring operating profit adjusted for depreciation and amortisation
Activity and results for H1 2020
- Stakes of €6.9 billion, down 18.4%
- Lottery stakes of €5.8 billion (-12.6%)
Lottery staked amounted to €5.8 billion, with a drop of 11.3% to €3.6 billion for instant games and a drop of 14.6% to €2.2 billion for draw games:
- For instant games, the decline can be attributed in large part to the steep decline in footfall in points of sale during lockdown and the lack of activity in the product portfolio during the second quarter;
- For draw games, the decrease can be ascribed chiefly to the suspension of Amigo, an express draw game in points of sales from 19 March to 8 June. Adjusted for Amigo, draw games stakes were down only slightly (-1.7%);
- Online lottery stakes enjoyed good momentum, with an increase of 50% to €0.5 billion, and a marked acceleration in the second quarter, driven mainly by growth in the number of active players and the almost doubling of new registrations on fdj.fr.
- Sports betting stakes of €1.1 billion (-38.8%)
Sports betting stakes totalled €1.1 billion. After a performance in line with objectives at the start of the year, sports betting stakes were impacted by the gradual cancellation of virtually all sporting competitions from mid-March 2020. No major sporting competitions took place during lockdown, which considerably reduced the betting offer. Since mid-May, sporting competitions, particularly football, have gradually resumed, resulting in a very significant resumption in stakes.
- Revenue down 14.7% at €849 million
On half-yearly stakes of €6.9 billion (-18.4%), player winnings totalled €4.6 billion (-19.9%), representing a player payout (PPO) ratio of 67.3%, compared with 68.4% in the first half of 2019. The decline in the PPO reflects the change in the betting mix, with a higher share of lottery games. In addition, the sports betting PPO was reduced by unexpected results.
FDJ recorded gross gaming revenue (GGR: stakes less prizes won) down 15.1% at €2.3 billion. Net gaming revenue (NGR: GGR less contribution to the public finances) amounted to €829 million, i.e. 12.0% of stakes, with stability in the rate of public levies on games compared with that of the first half of 2019 at 63.5% of GGR, or €1.4 billion.
The FDJ Group’s revenue amounted to €849 million (-14.7%), compared with €995 million in the six months to end-June 2019.
- EBITDA of €174 million, representing a margin of 20.5% on revenue (vs 20.9% in H1 2019)
- Contribution margin by activity:
- Lottery: contribution margin steady at 32.2%
The contribution margin of the Lottery BU was €219 million, i.e. a decline of €37 million (‑14.4%), for a margin on revenue of 32.2%, vs 33.2% in H1 2019 on the basis of revenue down 12.2% at €679 million.
Cost of sales, mainly the remuneration of distributors, was down 13.6% due to the drop in stakes in points of sale, while the slight increase of 6.6% in marketing and communication expenses to €65 million reflects the continued development of the product offering, partly offset by the reduction in advertising and promotional expenses.
- Sports betting: contribution margin of 31.3%, an increase of 7 points due to the low PPO ratio
The Sports Betting BU’s contribution margin was €45 million in H1 2020, almost stable compared with the same period in 2019 (€48 million), i.e. a margin on revenue of 31.3%, up more than 7 points compared with the first half of 2019 (24.3%). Based on a drop of 38.8% in stakes, the lower half-yearly PPO ratio than in the first half of 2019 (73.1% vs 77.7%) helped limit to €50 million the decline in revenue (-25.7%) to €145 million.
The 39.3% reduction in cost of sales reflects trends in stakes, while the 15.8% decline in marketing and communication expenses to €34 million is related to the reduction in advertising and promotional initiatives against the backdrop of a reduced product offering.
- Adjacent activities and holding company
Adjacent activities (International, Payments & Services and Entertainment) and the holding company recorded revenue of €24 million, with a contribution margin close to breakeven. Holding company costs amounted to €89 million, down €9 million compared with H1 2019.
- EBITDA margin of 20.5%, virtually stable thanks in large part to the implementation of a savings plan of more than €80 million
From the onset of the health crisis and its first effects, the Group implemented a savings plan of more than €80 million for 2020. Two-thirds of the plan, more than half of which covered A&P expenditure, was implemented in H1, helping offset more than half of the decline in activity and thereby helping keep FDJ’s EBITDA margin above 20%.
The Group’s operating expenses were down 12.5% at €725 million, of which:
– Cost of sales of €482 million, down 17.6%, which notably includes the remuneration of €336 million for distributors, down €88 million (-21%), in line with the decline in stakes in the point-of-sale network;
– Marketing and communication expenses of €147 million, down nearly 2%;
– General and administrative expenses of €87 million, down 7%.
Depreciation and amortisation amounted to €50 million, compared with €43 million in H1 2019. Their growth was driven mainly by the amortisation of exclusive operating rights over a full half-year in 2020, compared with a single month in H1 2019.
On those bases, the FDJ Group recorded a recurring operating profit of €124 million (-24.9%) and EBITDA of €174 million (-16.4%), i.e. a margin on revenue of 20.5%, compared with 20.9% in June 2019.
- Net income of €50 million including non-recurring items
In the first half of 2020, FDJ recorded other non-recurring operating expenses of €30 million, compared with €7 million in the first half of 2019. They related to Sporting Group, on which FDJ recorded impairment due to its sports betting activity in the United Kingdom.
The financial result for the first half of 2020 (expense of €5 million) reflects the change in the value of part of FDJ’s financial assets in a context of bearish financial markets.
After taking into account a net tax expense of €39 million, down €5 million, the Group’s net profit for the first half of 2020 was €50 million.
- Available cash exceeding €800 million and net cash surplus of €298 million at end-June 2020
At the end of June 2020, the Group had more than €800 million in available cash.
The net cash surplus is one of the indicators of the level of net cash generated by the Group. It corresponds mainly to financial investments and gross cash (€1,154 million), less borrowings (€733 million).
As of 30 June 2020, it amounted to €298 million, an increase of €218 million compared with 31 December 2019. The change was mainly attributable to:
– The EBITDA generated over the half-year, plus a dual positive effect on working capital surplus linked on the one hand to the change in the payment schedule for public levies (monthly in 2020 but weekly in 2019) and on the other hand to unclaimed prizes only returned to the State at the end of the year;
– Against which are charged dividends in respect of 2019 and investments for the first half of the year.
For information, the net cash surplus at the end of June cannot be extrapolated to the end of December because there are significant calendar effects on the payments of public levies, including an advance on public levies in December.
A financial presentation is available on the FDJ group’s website
https://www.groupefdj.com/en/investors/financial-publications.html.
FDJ’s Board of Directors met on 29 July 2020 and reviewed the interim consolidated financial statements at 30 June 2020, which were prepared under its responsibility. The limited review procedures on the interim consolidated financial statements have been carried out. The review report of the statutory auditors is being issued.
The Group’s next financial communication
Given the changing nature of the situation, the estimates and forward-looking statement presented by FDJ cannot constitute either a forecast or a target. The Group will announce its stakes and revenue for the September quarter after trading on 14 October and will issue its new 2020 outlook as soon as possible.
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 the SBF 120, Euronext Vigeo France 20, STOXX Europe 600, MSCI Europe and FTSE Euro indices.
For further information, www.groupefdj.com
Appendices
Adjusted 2019 data, with the full-year application of the new tax regime that came into force on 1 January 2020 and the consolidation of Sporting Group over 12 months.
|
In € million |
30 June 2020 |
30 June 2019 |
Chg. 30 June 2020 vs |
30 June 2019 |
Chg. 30 June 2020 vs |
|
Stakes* |
6,898 |
8,420 |
(18.1%) |
8,454 |
(18.4%) |
|
Attributable to Lottery |
5,777 |
6,609 |
(12.6%) |
6,609 |
(12.6%) |
|
Instant lottery games** |
3,558 |
4,012 |
(11.3%) |
4,012 |
(11.3%) |
|
Draw games |
2,219 |
2,598 |
(14.6%) |
2,598 |
(14.6%) |
|
Attributable to Sports betting |
1,108 |
1,810 |
(38.8%) |
1,810 |
(38.8%) |
|
|
|
|
|
|
|
|
Digitalised stakes*** |
1,391 |
1,652 |
(15.8%) |
1,652 |
(15.8%) |
|
Offline stakes |
6,269 |
7,917 |
(20.8%) |
7,917 |
(20.8%) |
* Stakes reflect wagers by players, and do not constitute the revenue of the FDJ Group
** Mainly scratch games (point of sale and online)
*** Digitalised stakes include online and digitalised stakes at the point of sale, i.e. using a digital service/application for their preparation, prior to registration by the distributor
|
In € million |
30 June 2020 |
30 June 2019 |
Chg. 30 June 2020 vs |
30 June 2019 |
Chg. 30 June 2020 vs |
|
Stakes |
6,898 |
8,420 |
(18.1%) |
8,454 |
(18.4%) |
|
Player winnings |
4,646 |
5,757 |
(19.3%) |
5,799 |
(19.9%) |
|
Player payout ratio |
67.3% |
68.4% |
|
68.6% |
|
|
Gross gaming revenue (GGR) |
2,253 |
2,663 |
(15.4%) |
2,654 |
(15.0%) |
|
GGR as a % of stakes |
32.7% |
31.6% |
3.3% |
31.4% |
4.0% |
|
Net gaming revenue (NGR) |
829 |
933 |
(11.2%) |
976 |
(15.0%) |
|
NGR as a % of stakes |
12.0% |
11.1% |
8.5% |
11.5% |
4.1% |
|
Revenue |
849 |
944 |
(10.1%) |
995 |
(14.7%) |
Segment reporting
| 30 June 2020 | |||||||
| In € millions | Lottery BU | Sport Betting BU |
Other segments |
Holding company |
Total before depreciation and amortisation |
Depreciation and amortisation |
Total Group |
| Stakes |
5,777 |
1,108 |
14 |
– |
6,898 |
6,898 |
|
| Gross gaming revenue |
1,954 |
298 |
1 |
– |
2,253 |
2,253 |
|
| Net gaming revenue |
677 |
145 |
6 |
– |
829 |
829 |
|
| Revenue |
679 |
145 |
24 |
1 |
849 |
849 |
|
| Cost of sales |
(395) |
(65) |
(3) |
– |
(464) |
(18) |
(482) |
| Marketing and communication expenses |
(65) |
(34) |
(21) |
(12) |
(133) |
(14) |
(147) |
| Contribution margin |
219 |
45 |
(1) |
(12) |
251 |
(32) |
219 |
| General and administration expenses |
(78) |
(78) |
(18) |
(95) |
|||
| EBITDA |
174 |
||||||
| Depreciation and amortisation |
(50) |
||||||
| Recurring operating profit |
124 |
||||||
| BU Loterie | BU Paris sportifs |
ABU | Holding | Total avant amort. |
Amort. | Total Groupe | |
| Mises |
6,610 |
1,810 |
34 |
0 |
8,454 |
8,454 |
|
| Produit Brut des Jeux (PBJ) |
2,251 |
403 |
0 |
0 |
2,654 |
2,654 |
|
| Produit Net des Jeux (PNJ) |
771 |
195 |
9 |
0 |
976 |
976 |
|
| Chiffre d’affaires |
773 |
195 |
27 |
0 |
995 |
995 |
|
| Coût des ventes |
-456 |
-107 |
-3 |
0 |
-566 |
-19 |
-585 |
| Coûts marketing et communication |
-61 |
-41 |
-22 |
-14 |
-138 |
-12 |
-150 |
| Marge contributive |
256 |
48 |
2 |
-14 |
291 |
-31 |
260 |
| Coûts administratifs et généraux |
-83 |
-83 |
-12 |
-95 |
|||
| EBITDA |
208 |
||||||
| Dotations aux amortissements |
-43 |
||||||
| Résultat Opérationnel Courant |
165 |
| 30 June 2019 published | |||||||
| In € millions | Lottery BU |
Sport Betting BU |
Other segments |
Holding company |
Total before depreciation and amortisation |
Depreciation and amortisation |
Total Group |
| Stakes |
6,610 |
1,810 |
– |
– |
8,420 |
8,420 |
|
| Gross gaming revenue |
2,257 |
406 |
– |
– |
2,663 |
2,663 |
|
| Net gaming revenue |
759 |
173 |
2 |
– |
933 |
933 |
|
| Revenue |
761 |
173 |
11 |
– |
944 |
944 |
|
| Cost of sales |
(456) |
(107) |
(1) |
– |
(564) |
(19) |
(583) |
| Marketing and communication expenses |
(62) |
(40) |
(11) |
(14) |
(127) |
(11) |
(138) |
| Contribution margin |
243 |
26 |
(2) |
(14) |
253 |
(30) |
223 |
| General and administration expenses |
(76) |
(76) |
(11) |
(87) |
|||
| EBITDA |
177 |
||||||
| Depreciation and amortisation |
(41) |
||||||
| Recurring operating profit |
136 |
||||||
Consolidated income statement
| In € millions | 30 June 2020 | 30 June 2019 published |
| Stakes |
6,898.4 |
8,420.0 |
| Player payout |
(4,645.5) |
(5,756.9) |
| Gross gaming revenue |
2,252.8 |
2,663.0 |
| Public levies |
(1,429.8) |
(1,692.4) |
| Structural allocations to counterparty funds |
0.0 |
(39.1) |
| Other revenue from sports betting |
6.0 |
1.9 |
| Net gaming revenue |
829.0 |
933.4 |
| Revenue from other activities |
19.7 |
10.5 |
| Revenue |
848.6 |
944.0 |
| Cost of sales |
(481.9) |
(582.9) |
| Marketing and communication expenses |
(147.5) |
(138.1) |
| General and administrative expenses |
(87.0) |
(85.6) |
| Other recurring operating income |
0.5 |
0.4 |
| Other recurring operating expenses |
(9.0) |
(1.8) |
| Recurring operating profit |
123.8 |
135.9 |
| Other non recurring operating income |
0.2 |
0.1 |
| Other non recurring operating expenses |
(30.3) |
(7.3) |
| Operating profit |
93.7 |
128.7 |
| Cost of debt |
(2.1) |
(0.8) |
| Other financial income |
5.7 |
12.2 |
| Other financial expenses |
(8.9) |
(0.5) |
| Net financial income/(expense) |
(5.2) |
10.9 |
| Share of net income for joint ventures |
0.5 |
0.6 |
| Profit before tax |
89.0 |
140.2 |
| Income tax expense |
(38.8) |
(44.4) |
| Net profit for the period |
50.2 |
95.9 |
| Attributable to : | ||
| Owners of the parent |
50.2 |
95.9 |
| Non -controlling interests |
0.0 |
0.0 |
| Basic earnings per share (in €) |
0.26 |
0.50 |
| Diluted earnings per share (in €) |
0.26 |
0.50 |
| In € millions |
30 June 2020 |
30 June 2019 |
June 2020 vs |
30 June 2019 |
June 2020 vs |
| Recurring operating profit |
124 |
136 |
(8.8%) |
165 |
(24.8%) |
| Depreciation and amortisation |
(50) |
(41) |
22.0% |
(43) |
16.3% |
| EBITDA |
174 |
177 |
(1.8%) |
208 |
(16.4%) |
Consolidated statement of comprehensive income
| In € millions | 30 June 2020 | 30 June 2019 published |
| Net profit for the period |
50.2 |
95.9 |
| Cash flow hedging, before tax |
0.1 |
0.2 |
| Net investment hedge on foreign activities, before tax |
6.6 |
0.6 |
| Net currency translation difference, before tax |
(2.4) |
0.3 |
| Tax related to items that may subsequently be recycled |
(2.1) |
(0.2) |
| Items recycled or that may subsequently be recycled to profit |
2.2 |
0.9 |
| Actuarial gains and losses |
0.3 |
(3.3) |
| Others |
(0.0) |
(0.0) |
| Tax related to actuarial gains and losses through equity |
(0.1) |
1.0 |
| Items that may not subsequently be recycled to profit |
0.2 |
(2.3) |
| Other comprehensive income/(expense) |
2.4 |
(1.4) |
| Total comprehensive income for the period |
52.7 |
94.5 |
| Attributable to : | ||
| Owners of the parent |
52.7 |
94.5 |
| Non-controlling interests |
0.0 |
0.0 |
Consolidated statement of financial position
| In € millions | ||
| ASSETS | 30 June 2020 | 31 December 2019 published |
| Goodwill |
28.1 |
56.4 |
| Exclusive operating rights |
363.1 |
370.7 |
| Intangible assets |
162.2 |
148.3 |
| Property, plant and equipment |
385.7 |
394.0 |
| Non-current financial assets |
378.1 |
584.3 |
| Investments in associates |
14.9 |
14.5 |
| Non-current assets |
1,332.1 |
1,568.2 |
| Inventories |
16.3 |
10.5 |
| Trade and distribution network receivables |
385.8 |
469.8 |
| Other current assets |
302.0 |
314.8 |
| Tax payable assets |
6.0 |
18.9 |
| Current financial assets |
354.9 |
272.2 |
| Cash and cash equivalents |
475.6 |
201.5 |
| Current assets |
1,540.6 |
1,287.8 |
| TOTAL ASSETS |
2,872.7 |
2,856.0 |
| In € millions | ||
| EQUITY AND LIABILITIES | 30 June 2020 | 31 December 2019 published |
| Share capital |
76.4 |
76.4 |
| Statutory reserves |
91.7 |
87.5 |
| Retained earnings (incl. Net profit for the period) |
366.2 |
406.7 |
| Reserves for other comprehensive income/(expense) |
1.2 |
(1.3) |
| Equity attributable to owners of the parent |
535.4 |
569.2 |
| Non-controlling interests |
0.0 |
0.0 |
| Equity |
535.4 |
569.2 |
| Provisions for pensions and other employee benefits |
56.3 |
56.9 |
| Non-current provisions |
48.1 |
49.3 |
| Deferred tax liabilities |
26.1 |
24.9 |
| Non-current player funds |
0.0 |
0.0 |
| Non-current financial liabilities |
568.6 |
229.7 |
| Non-current liabilities |
699.1 |
360.9 |
| Current provisions |
15.9 |
16.7 |
| trade and distribution network payables |
314.1 |
411.6 |
| Tax payable liabilities |
1.0 |
0.7 |
| Current player funds |
176.4 |
156.6 |
| Public levies |
540.6 |
414.8 |
| Winnings payable and distributable |
244.4 |
189.3 |
| Other current liabilities |
180.6 |
169.6 |
| Payable to the French State with respect to the exclusive operating rights |
0.0 |
380.0 |
| Current financial liabilities |
165.1 |
186.5 |
| Current liabilities |
1,638.2 |
1,925.9 |
| TOTAL EQUITY AND LIABILITIES |
2,872.7 |
2,856.0 |
Consolidated statement of cash flows
| In € millions | 30 June 2020 | 30 June 2019 published |
| OPERATING ACTIVITIES | ||
| Net consolidated profit for the period |
50.2 |
95.9 |
| Change in depreciation, amortisation and impairment of non-current assets |
75.9 |
43.1 |
| Change in provisions |
4.1 |
6.1 |
| Disposal gains or losses |
0.2 |
0.1 |
| Income tax expense |
38.8 |
44.4 |
| Other non-cash items from P&L |
(0.2) |
0.0 |
| Net financial (income)/expense |
5.2 |
(10.9) |
| Share of net income from joint ventures |
(0.5) |
(0.6) |
| Non-cash items |
123.5 |
82.2 |
| Use of provisions – payments |
(6.5) |
(4.5) |
| Interest received |
2.5 |
2.3 |
| Income taxes paid |
(25.2) |
(31.9) |
| Change in trade receivables and other current assets |
(19.6) |
124.2 |
| Change in inventories |
(5.7) |
(1.9) |
| Change in trade receivables and other current liabilities |
222.9 |
(56.5) |
| Change in other components of working capital |
(1.6) |
(1.5) |
| Change in operating working capital |
196.0 |
64.3 |
| Net cash flow from/(used in) operating activities |
340.6 |
208.3 |
| INVESTING ACTIVITIES | ||
| Acquisitions of property, plant and equipment and intangible assets |
(423.2) |
(32.4) |
| Acquisitions of investments |
0.0 |
(111.8) |
| Disposals of property, plant and equipment and intangible assets |
0.1 |
0.0 |
| Change in current and non-current financial assets |
145.3 |
(50.1) |
| Disposals of other financial assets |
0.0 |
0.0 |
| Change in loan and advances granted |
(26.9) |
2.8 |
| Dividends received from associates and non-consolidated share |
0.0 |
0.4 |
| Other |
0.5 |
0.0 |
| Net cash flow from/(used in) investing activities |
(304.3) |
(191.0) |
| FINANCING ACTIVITIES | ||
| Issue of long-term debt |
380.0 |
113.3 |
| Repayment of the current portion of long-term debt |
(8.8) |
(4.0) |
| Repayment of lease liabilities |
(4.0) |
(2.9) |
| Dividends paid to ordinary shareholder of the parent company |
(83.4) |
(118.3) |
| Interest paid |
(4.8) |
(0.8) |
| Other |
(0.6) |
0.0 |
| Net cash flow from/(used in) financing activities |
278.5 |
(12.7) |
| Impact of exchange rates change |
(0.4) |
0.9 |
| Net increase/(decrease) in net cash |
314.3 |
5.5 |
| Cash and cash equivalent as at 1 January |
201.5 |
167.2 |
| Cash and cash equivalent as at 31 December |
475.6 |
179.0 |
| Current bank overdrafts as at 1 January |
(40.2) |
(7.2) |
| Current bank overdrafts as at 31 December |
0.0 |
(13.6) |
Consolidated statement of changes in equity
|
In € millions |
Share capital |
Statutory reserves |
Retained earnings (incl. Net profit for the period) |
Cash flow hedging |
Net investment hedge on foreign activities |
Net currency translation difference |
Actuarial gains and losses |
Reserves for other comprehensive income/ |
Equity attributable to owners of the parent |
Non-controlling interests |
Total equity |
|
|
|||||||||||
|
Equity as at 31 December 2018 |
76.4 |
85.3 |
401.1 |
0.2 |
0.0 |
2.1 |
(1.2) |
1.1 |
563.9 |
0.0 |
563.9 |
|
Net profit for the period |
95.9 |
95.9 |
0.0 |
95.9 |
|||||||
|
Other comprehensive income/(expense) |
0.2 |
0.4 |
0.3 |
(2.3) |
(1.4) |
(1.4) |
(1.4) |
||||
|
Total comprehensive income/(expense) for the period |
0.0 |
0.0 |
95.9 |
0.2 |
0.4 |
0.3 |
(2.3) |
(1.4) |
94.5 |
(0.0) |
94.5 |
|
Appropriation of 2018 profit/(loss) |
2.0 |
(2.0) |
|||||||||
|
2018 dividends paid |
(122.0) |
(122.0) |
(122.0) |
||||||||
|
Equity as at 30 June 2019 |
76.4 |
87.4 |
372.8 |
0.4 |
0.4 |
2.4 |
(3.5) |
(0.3) |
536.2 |
(0.0) |
536.2 |
|
|
|||||||||||
|
Equity as at 31 December 2019 |
76.4 |
87.5 |
406.7 |
(0.1) |
(1.4) |
4.1 |
(3.9) |
(1.3) |
569.2 |
0.0 |
569.2 |
|
Net profit for the period |
50.2 |
50.2 |
50.2 |
||||||||
|
Other comprehensive income/(expense) |
0.1 |
4.5 |
(2.4) |
0.2 |
2.5 |
2.5 |
2.5 |
||||
|
Total comprehensive income/(expense) for the period |
0.0 |
0.0 |
50.2 |
0.1 |
4.5 |
(2.4) |
0.2 |
2.5 |
52.7 |
0.0 |
52.7 |
|
Appropriation of 2019 profit/(loss) |
4.2 |
(4.2) |
|||||||||
|
2019 dividends paid |
(86.0) |
(86.0) |
(86.0) |
||||||||
|
Other |
(0.6) |
(0.6) |
(0.6) |
||||||||
|
Equity as at 30 June 2020 |
76.4 |
91.7 |
366.1 |
0.0 |
3.1 |
1.7 |
(3.7) |
1.2 |
535.4 |
0.0 |
535.4 |
Net cash surplus
| In € millions | 30 June 2020 | 31 December 2019 published |
| Non-current financial assets at amortised cost |
160.0 |
440.0 |
| Non-current assets fair value through profit or loss |
131.3 |
90.4 |
| Other non-current financial assets excluding deposits |
32.4 |
29.3 |
| Total non-current investments (a) |
323.7 |
559.8 |
| Current financial assets at amortised cost |
349.0 |
253.0 |
| Current financial assets at fair value through profit or loss |
5.0 |
16.1 |
| Current derivatives |
0.8 |
0.9 |
| Total current investments (b) |
354.8 |
270.0 |
| Total current and non-current investments |
678.5 |
829.8 |
| Investments, cash equivalents |
185.0 |
121.2 |
| Cash at bank and in hand |
290.7 |
80.3 |
| Total cash and cash equivalents |
475.7 |
201.5 |
| Total gross investments and cash |
1,154.2 |
1,031.3 |
| Long-term financial debt |
546.1 |
205.0 |
| Non-current lease liabilities |
22.0 |
24.4 |
| Total non-current financial debt (c) |
568.1 |
229.4 |
| Short-term financial debt |
27.2 |
8.2 |
| Current lease liabilities |
7.2 |
7.0 |
| Current derivatives |
0.2 |
0.7 |
| Other |
130.5 |
170.5 |
| Total current financial debt excluding deposits (d) |
165.1 |
186.4 |
| Total financial debt |
733.2 |
415.8 |
| INVESTMENTS AND NET CASH |
421.0 |
615.5 |
| Payable to the French State with respect to the exclusive operating rights |
0.0 |
(380.0) |
| Reclassification of online players wallets not yet covered by trust |
0.0 |
(26.9) |
| Restricted cash |
(4.5) |
(5.3) |
| Sums allocated exclusively to Euromillions winners |
(72.6) |
(77.2) |
| Net liability associated with the permanent fund surplus |
(46.1) |
(46.1) |
| NET CASH SURPLUS |
297.8 |
79.9 |
(a) Non-current investments correspond to non-current financial assets (as set out in the notes to the consolidated financial statements – statement of financial position), excluding Euromillions deposits and guarantee deposits
(b) Current investments correspond to current financial assets (as set out in the notes to the consolidated financial statements – statement of financial position), excluding given deposits and guarantees
(c) Long-term financial debt corresponds to non-current financial liabilities (as set out in the notes to the consolidated financial statements – statement of financial position), excluding received deposits and guarantees
(d) Short-term financial debt corresponds to non-current financial liabilities (as set out in the notes consolidated financial statements – statement of financial position)
———————————————
1 Restated to reflect the new tax regime that came into force on 1 January 2020 and consolidating Sporting Group on a full-year basis. Based on 2019 reported figures, half-year revenue would have been down 10%.
Sports Information Services (SIS), the leading multi-content supplier of 24/7 live betting services, and Premier Greyhound Racing (PGR), the media rights company supplier of greyhound racing to the betting industry and direct to viewers, have collaborated to offer a revised race time schedule starting from 20 May.
Designed to protect the long-term future of UK greyhound racing, the new schedule will see morning fixtures start slightly later – moving from 10.47 to 11.01 and 10.54 to 11.09. Additionally, there will also be a slightly later start time for some evening fixtures aimed at a retail audience, with the first evening fixture now starting at 18.08.
Commenting on the improved schedule, Terry Mahoney, Head of Business Development at ARC, said: “The new race times will help make it easier for customers to navigate busy racing schedules as well as improving operations trackside. We will continue to listen, monitor, and adapt schedules where and when needed as we move forward to deliver the best service possible for betting operators as well as punters.”
Paul Witten, Managing Director at SIS, added: “We are passionate about delivering a greyhound racing service that benefits all of the sport’s stakeholders. Together with Premier Greyhound Raxing, we have introduced a revised racing schedule that benefits operators and their customers.
“Our approach to greyhound racing is grounded in sustainability and flexibility. This collaboration with fellow service providers allows everyone to enjoy all the high-quality action produced on a daily basis from tracks across the UK and Ireland.”
SIS has long-term agreements in place with bet365, William Hill, Paddy Power and Betfred to deliver its greyhound content across UK and Irish retail and digital channels. SIS also promotes this content across dozens of leading international operators, as well as through SISRacing.tv.
PGR offers greyhound action, cards, video replays, results, news and info on greyhounds.attheraces.com, and regular live broadcasts on Sky Sports Racing. Premier Greyhound Racing is a joint venture between Arena Racing (ARC) and Entain, the global sports betting, gaming and interactive entertainment group. Between them, the two companies own nine of the 20 licensed British greyhound tracks and ARC manage the media rights for five independent tracks.
The post SIS and Premier Greyhound Racing reveal improved greyhound race time schedule appeared first on European Gaming Industry News.
By Lorenzo Nardini, Head of Technical Compliance and Maths Services
In the dynamic world of online gaming, data plays a pivotal role. Databases containing personal and financial information, often referred to as “Safe” databases, serve as the backbone of any gaming platform.
In this short article, I focus on control databases (CDBs) – that is how Safe databases are referred to in the Dutch landscape – and why it is important to ensure their completeness, accuracy, and consistency through continuous data quality review. In any case, the topics here covered apply to most regulated markets.
Control databases contain critical information related to player accounts, financial transactions, game rules, and security protocols. Essentially, they ensure the smooth functioning of the entire gaming ecosystem. It is no wonder that the Dutch regulator (KSA) enforces specific technical regulations on them and often perform audits on these systems that can result also in fines in cases errors are detected.
Data quality review checks
Data quality review checks play a pivotal role in maintaining the integrity of control databases, ensuring continuous compliance. Here are some key reasons why they are essential:
- Accuracy and Consistency: Control databases handle vast amounts of data, including player profiles, game logs, and financial records. Ensuring accurate and consistent data is crucial for fair gameplay, financial transparency, and regulatory compliance.
- Player Experience: Imagine a player losing progress due to a database glitch or loss of connectivity. Such incidents can lead to frustration and loss of trust. Data quality checks ensure that the control database is correctly functional, and the information therein contained can be used to handle such incomplete games, enhancing the overall player experience.
- Regulatory Compliance: Gaming companies must adhere to strict regulations regarding data privacy, security, and fairness. Regular reviews ensure compliance with industry standards and legal requirements.
Most importantly, regular reviews can help gaming companies reducing the risk of an unsuccessful audit that could typically lead to a fine and negative PR.
Ideally, data quality reviews should be ongoing. Real-time monitoring is crucial for identifying issues promptly. Additionally, scheduled audits—monthly or quarterly—help catch any long-term discrepancies or trends.
Key areas of data quality reviews
When performing checks on the quality of CDBs, the following are the main areas to consider:
- Data Completeness: Ensure that all necessary fields are populated correctly. Missing or incomplete data can lead to errors downstream.
- Data Accuracy: Cross-check data against reliable sources. For example, player balances should match financial records.
- Data Consistency: Verify consistency across different databases and systems. Inconsistencies can cause confusion and operational inefficiencies.
Starting from the specific Dutch case and then expanding to other markets, here at ComplianceOne Group we have developed a data quality review service using our experience in dealing with this form of analysis. Leveraging feedback obtained directly from regulators, we created a testing procedure that performs the following:
- Tests on triggering reports from staging environment. We access the client’s staging environment with test accounts and perform actions that are aimed at triggering specific reports in the control database. We then check that these have been correctly generated and that they contain all necessary information, checking their accuracy against the back-office.
- Data quality tests on production environment. We download a large number of reports directly from production and run a battery of tests that we have designed and that is tailored specifically at checking completeness and consistency of the information contained in the control database.
All findings are promptly reported to the client and, if needed, we can assist with solving any issues found.
Conclusion
When I started being exposed to control databases, I understood that for many this is a very technical area and that maintaining this environment functioning correctly can be quite cumbersome. Nevertheless, a commitment to data quality is a necessary for ensuring continuous compliance of gaming platforms. If you are interested in running regular data quality reviews, or even just a one-time overall check, contact me and I will be happy to assist!
The post The Importance of Data Quality Review Checks in the Gaming Industry appeared first on European Gaming Industry News.
7777 gaming, a leading provider of digital gaming solutions, has announced a significant strategic partnership with Scientific Games a global leader in retail and digital lottery games, technology, analytics and services, to deliver digital lottery games through the SG Content Hub Partner Program.
The SG Content Hub Partner Program is a unique platform and game content partnership program featuring an expanding, highly curated selection of iLottery games from best-in-class, game studios worldwide in a variety of play styles appealing to all player types in multiple languages, as well as access to select licensed properties from the largest licensed brands portfolio in the lottery industry. Scientific Games currently serves 150 lotteries in 50 countries.
Elena Shaterova, Chief Commercial Officer at 7777 gaming, expressed enthusiasm about the partnership: “Partnering with Scientific Games represents a significant milestone for 7777 gaming, solidifying our position as a global leader in digital lottery solutions. Through this collaboration, we are poised to deliver unparalleled gaming experiences to players worldwide, driving innovation and growth in the lottery industry.”
Steve Hickson, VP of Digital Games at Scientific Games commented: “We are delighted to welcome yet another top-class lottery game studio to the SG Content Hub Partner Program. The addition of 7777 gaming and their fantastic games aligns perfectly with our goal to make a variety of digital lottery content available to existing and new Scientific Games customers. Our SG Content Hub Partner Program is developing at pace as we continue to provide our customers with frictionless access to the very best content in the industry.”
The SG Content Hub Partner Program offers a one-stop solution for accessing multiple iLottery game studios, seamlessly integrating with a lottery’s existing gaming systems and iLottery technology. It streamlines operations, simplifies tech integrations, and enhances data analytics to drive game development and iLottery portfolio management.
7777 gaming is renowned for its ability to deliver high-quality iLottery games tailored to the unique requirements of different lotteries. The company ensures that its game content meets stringent government regulations and operators’ expectations for customization. With custom-made lottery concepts, 7777 gaming guarantees enhanced player satisfaction and fosters a deeper sense of connection and loyalty to the brand.
The post 7777 gaming signs a strategic iLottery content deal with Scientific Games appeared first on European Gaming Industry News.
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