FDJ completed the acquisition of PLI for €350.0m, marking its first venture operating a lottery outside of France. This move aligns with FDJ’s strategic goal of becoming an international B2C operator in lottery, sports betting, and online gaming.
The purchase of PLI from the Ontario Teachers’ Pension Plan, An Post, and An Post Pension Fund grants FDJ exclusive rights to operate the Irish National Lottery until 2034. PLI employs over 200 staff and operates online and retail through a network of more than 5,300 points of sale. In 2022, PLI recorded €399.0m in gross gaming revenue with a net gaming revenue of €140.0m and a comparable EBITDA margin to FDJ.
FDJ plans to strategically grow PLI by jointly developing a plan to accelerate its growth and improve profitability. This plan will leverage the best practices of both operators and FDJ’s experience. The goals include expanding PLI’s instant-win games portfolio, growing the draw games’ player base, and enhancing the digital experience for players.
FDJ Chairman and CEO, Stéphane Pallez, expressed excitement about expanding the company’s international presence and offering Irish players a recreational and responsible range of games. PLI CEO Andrew Algeo thanked Ontario Teachers’ and An Post for their support and anticipated contributing to FDJ’s global lottery expansion while improving the Irish National Lottery.
In addition to the PLI acquisition, FDJ recently finalized its purchase of the ZEturf Group, valued at €175.0m. The French Competition Authority approved the deal, which grants FDJ access to online horse race betting and internet sports betting via the ZEbet brand. ZEturf generated over €50.0m in revenue in 2022 with approximately 100 employees.
FDJ’s performance in the first nine months of 2023 saw a 3.9% increase in revenue to €1.88bn, driven by growth in its sports betting and igaming business. Lottery remains FDJ’s primary revenue source, generating €1.41bn in the period. However, this represents a 1.2% decrease compared to the previous year, with draw stakes down by 6.0%. On the other hand, sports betting and igaming revenue rose by 9.3% to €360m. Stakes at points of sale increased by 0.8% to €13.28bn, while digital stakes jumped by 10.6% to €2.01bn, indicating increased digital spending across all business areas.
