FDJ flags potential €55m monthly revenue shortfall due to coronavirus
French lottery operator also sees sports betting negatively impacted as country enters 15-day lockdown
French state lottery operator La Française des Jeux (FDJ) has warned of the impending financial impact on its business due to the coronavirus outbreak.
FDJ noted that with the French government urging people to stay indoors, it would have a negative impact on its main retail lottery business.
France began a 15-day lockdown on 17 March, with citizens required to carry official paperwork stating why they were not at home if they are in public.
For its lottery operations, FDJ has estimated that a potential 50% reduction in sales would result in a monthly revenue loss of €55m and, on EBIDTA, around €17m.
The operator has also suspended its Amigo game sales to prevent large groups of people congregating at points of sale.
FDJ said that approximately 80% of its sales network, chiefly tobacconists and newsagents, have been allowed to remain open.
The operator’s sports betting business will also be impacted by the cancellation of major sporting events across the globe.
FDJ are forecasting a loss of around €120m in revenue and around €50m in EBITDA earnings for 2020 from its sports betting arm.
However, FDJ did confirm that it was in a sound financial position, with sufficient cash reserves and liquidity to remain flexible during the difficult months ahead.
The company has seen its shares fall 22% since the beginning of 2020.
FDJ has also postponed its shareholders general meeting until 18 June with its next financial report due to be released on 21 April.
Stéphane Pallez, FDJ CEO and chair, said: “Today we are facing an unprecedented and exceptional situation that requires the mobilisation of everyone and will weigh on our business for an indefinite period.
“In that respect, the FDJ Group has very quickly organised itself to face this unprecedented health crisis in a responsible manner and limit the consequences on its employees, customers, retailers and shareholders, thanks to the resilience, responsiveness and the commitment of everyone at FDJ.”