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La Française des Jeux (FDJ) announces its results for the first half of 2020

George Miller

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La Française des Jeux (FDJ) announces its results for the first half of 2020
Reading Time: 14 minutes

 

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
2020

30 June 2019

adjusted

Chg. vs
adjusted

30 June 2019
published

Chg. vs
published

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
published

Chg. 30 June 2020 vs
30 June 2019 published

30 June 2019
adjusted

Chg. 30 June 2020 vs
30 June 2019 adjusted

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
published

Chg. 30 June 2020 vs
30 June 2019 published

30 June 2019
adjusted

Chg. 30 June 2020 vs
30 June 2019 adjusted

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
published

June 2020 vs
June 2019 published

30 June 2019
adjusted

June 2020 vs
June 2019 adjusted

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/
(expense)

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%.

eSports

Guild Esports appoints MediaCom S&E to support global partnerships strategy

George Miller

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Guild Esports appoints MediaCom S&E to support global partnerships strategy
Reading Time: 2 minutes

 

Guild Esports (Guild), the global esports business headquartered in London, today announces the appointment of MediaCom Sport & Entertainment (MediaCom S&E) as the Company’s first consultancy delivering Guild’s commercial partnerships strategy.

Guild’s appointment of the esports division of MediaCom, one of the world’s leading media agencies, will support the Company across all aspects of its commercial proposition, development, and global go-to-market strategy for its commercial partners.

Guild Esports, which is co-owned by David Beckham, is bridging the gap between sports and esports with an academy-powered model and a brand that celebrates and harnesses the diverse and tribal loyalty of esports enthusiasts on a global scale. The Company’s ambition is to build a culture of excellence around both its brand and digital presence and to develop a lifestyle cross-over brand suited to the fast-growing esports market. Globally esports is currently valued at US$1.1bn and is projected to grow by 42% to US$1.56bn by 2023.

Guild welcomes MediaCom S&E as an accomplished agency with a proven track record and a wealth of partnerships and esports expertise that will enhance and strengthen the appeal of Guild’s expanding business. Guild’s appointment of MediaCom S&E dovetails with the agency’s recent expansion of its gaming business following recent work with Tencent, one of the world’s largest investors into esports broadcasting and publishing, alongside Cartier, Piaget and Richemont.

Carleton Curtis, executive chairman at Guild, commented: “We are excited to be working with MediaCom to spearhead Guild’s partnerships strategy. Their wealth of experience within the tech sector and their understanding of our core channels makes them a perfect fit in supporting the growth and establishment of Guild as one of the leading players within esports.”

Michelle Tierney, Director of Commercial Partnerships at Guild, said: “We are at a pivotal moment with Guild poised for accelerated growth. This is an exciting time to welcome MediaCom S&E who can build on the momentum of our launch, foster partnerships and bring Guild to new audiences across the globe.”

Misha Sher, global VP of MediaCom S&E, said: “We are delighted to be partnering with Guild at the beginning of their exciting journey. The popularity and appeal of esports as a cultural phenomenon continues to grow and Guild are perfectly positioned to capitalize on the momentum. Operating at the intersection of media, technology and culture, we know what’s required to attract commercial partners in a new, digitally led world. We thank Guild for their trust and look forward to helping them build one of the industry’s leading organisations.”

Guild’s inaugural teams for EA FIFA Esports and Rocket League debuted earlier this year and the Company will continue to scale into various esports disciplines over the course of the 2020/21 season. Guild’s professional athletes can also expect to compete in the popular title Fortnite.

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Gambling in the USA

Evolution Selected for PointsBet US Live Casino Rollout

George Miller

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Evolution Selected for PointsBet US Live Casino Rollout
Reading Time: < 1 minute

 

Evolution Gaming, leading provider of Live Casino solutions, announced today that it has been selected by PointsBet, a premier global sportsbook operator, for its rollout of Live Casino services in the US online gambling market.

Originally founded in Australia, PointsBet is currently operational in New Jersey, Indiana, and Iowa, offering both online and land-based sports betting. PointsBet entered the US market in July 2018 when it gained a commercial licence to operate as an online corporate bookmaker in New Jersey and commenced taking bets in the Garden State in January 2019. Since then, PointsBet has built a national footprint by entering into a number of other agreements to expand US operations into other states, subject to the passing of enabling legislation.

Evolution opened its first US Live Casino studio in Atlantic City, New Jersey, in August 2018. A second Evolution studio is currently under construction in Pennsylvania with go-live scheduled for H2 2020, as well as a third in Michigan, scheduled for go-live in 2021.

Commenting on the partnership, Seth Young, Chief Innovation Officer at PointsBet, stated: “We are thrilled to partner with Evolution Gaming to launch Live Casino technology in US jurisdictions, where we plan to offer our proprietary online casino platform. The addition of Evolution Live Casino extends the appeal of PointsBet’s premium product in the rapidly growing US market.”

Sebastian Johannisson, Chief Commercial Officer at Evolution Gaming, added: “Evolution’s Live Casino portfolio offers PointsBet a rich mix of world-leading online Live Casino games including classic table games, online Poker variants that are big favourites with US players, and our new generation of award-winning, record-breaking game show games. In addition, PointsBet will have the option of exclusively branded dedicated tables and environments, should they require these.”

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Compliance Updates

Commonwealth Casino Commission releases official statement regarding recent events surrounding Imperial Pacific International Holdings

George Miller

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Commonwealth Casino Commission releases official statement regarding recent events surrounding Imperial Pacific International Holdings
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The following is an official statement from the Commonwealth Casino Commission (CCC) of the CNMI regarding the recent events surrounding Imperial Pacific International Holdings Ltd.

Mr. Edward DeLeon Guerrero, Chairman of the CCC stated, “IPI needs to fulfill its obligations, not only to the people of the CNMI, but also to their employees, vendors, and other parties who are contracted to work with their organization. We are deeply disappointed in IPI’s decision to request an abatement of their annual license fee and casino regulatory fee. The CCC is continuing its enforcement and investigations of its recent Orders that encompass the entire range of any payables or contributions owed to public entities and prepared to seek all remedies under the CNMI gaming laws and under the Casino License Agreement as they relate to IPI’s nonpayment and other non-compliance matters.”

 

About the Commonwealth Casino Commission:

The Commonwealth Casino Commission seeks to ensure that CNMI casinos are operating with high integrity, that the games operate fairly to each patron and that the casino is following best practices. To meet those goals, there are robust controls on all functions of the casinos. The Commission may discipline its casino, vendor, or gaming employee licensees to encourage compliance. The discipline may include monetary sanctions, license suspension, or – at the very worst – license revocation.

The Commission employs personnel who audit every part of the gaming operations including slots, table games, advertising and promotions, revenue accounting, security, and surveillance. As regulators of the CNMI’s casino, our mission is to hold the casino operator and employees accountable to the Commonwealth’s very high standards.

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