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• Revenue: EUR3,065 million, increase of 17%.

• Recurring EBITDA: EUR792 million, up 21%, margin of 25.8%.

• Adjusted Net Income: EUR490 million, up 13%.

• Dividend Proposal: EUR2.05 per share, increase of 15%.

• Net Financial Debt: EUR1.818 billion, leverage ratio of 1.9 times recurring EBITDA.

• Cash Conversion: Current EBITDA to cash conversion at 85%.

• Pro Forma Revenue: EUR3.788 billion, with recurring EBITDA of EUR964 million, margin of 25.5%.

• Bond Issuance: EUR1.5 billion eurobond issued to finance Kindred acquisition.

• Cost of Sales: EUR1 billion, primarily retailer remuneration.

• Marketing Costs: EUR223 million, increase due to Kindred acquisition and Olympic partnership.

• Personnel Expenses: EUR443 million, increase due to Kindred, ZEturf, and PLI integration.

• Net Depreciation and Amortization: EUR224 million, increase due to acquisition-related amortization.

• Free Cash Flow: EUR675 million, up 15%.

• Net Profit: EUR399 million, adjusted net profit EUR490 million.

• International Presence: Operations in 13 locally regulated European markets.

• Retail Network: 34,000 retailers, including 29,000 in France.

• Online Revenue: 35% of total activities.

• Warning! GuruFocus has detected 4 Warning Signs with LFDJF.

Release Date: March 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• La Francaise Des Jeux SA (LFDJF) successfully acquired Kindred, forming FDJ United, which has diversified the group's geographical and activity scope.

• The company reported a 17% increase in turnover, reaching EUR3,065 million, with a recurring EBITDA up 21% to EUR792 million.

• The integration of Kindred is well underway, with identified synergies and cost optimizations expected to generate over EUR50 million.

• The company maintained a strong cash conversion rate of 85% and a leverage ratio of 1.9 times recurring EBITDA, indicating financial stability.

• La Francaise Des Jeux SA (LFDJF) continues to invest in responsible gaming and sustainability, dedicating over 10% of its advertising budget to responsible gaming initiatives.

Negative Points

• The company faces increased taxation in France and the Netherlands, impacting revenue and EBITDA by approximately EUR60 million.

• Regulatory tightening in the Netherlands and the UK is expected to negatively affect revenue by EUR30 million to EUR40 million.

• Despite the acquisition of Kindred, the company projects a stable turnover for 2025, indicating limited growth potential in the short term.

• The integration of Kindred and the rollout of the KSP platform will take time, with full benefits not expected until 2027.

• The company's adjusted net profit decreased by 6% due to the cost of debt and amortization related to the Kindred acquisition.