The FDJ Group has secured an agreement to acquire Premier Lotteries Ireland (PLI), operator of the Irish National Lottery, in an “important step” towards the implementation of its international growth strategy.
The deal will make the French state lottery operator in charge of the Irish National Lottery until 2034. PLI has managed the lottery since 2014, when it paid a €140m fee for a 20-year license.
The announcement comes four months after Irish media reported that PLI’s current owner, the Ontario Teachers Pension Plan (OTTP), was looking to sell its stake.
FDJ’s takeover of PLI is still subject to certain conditions, notably Irish National Lottery regulator approval, but the Boulogne-based company expects to overcome these difficulties by the second half of 2023.
The company expects PLI to contribute significantly to its business, citing the Irish company’s 2022 gaming gross revenue (€399m), revenue of €140m and a ‘comparable’ EBITDA margin with FDJ.
Stéphane Pallez, Chairman and CEO of the FDJ Group, said: “I am delighted with the acquisition of Premier Lotteries Ireland, operator of the Irish national lottery and a long-standing partner in the EuroMillions community.”
“Becoming the operator of a foreign lottery is another important step in the international development of the FDJ Group”, added Pallez.
The deal marks a further expansion of FDJ’s international reach, following the company’s acquisition of Dutch betting operator ZETurf in November 2022.
On the other hand, it also represents a reduction in OTTP lottery operations since selling UK operator Camelot UK to new license holder Allwyn.
FDJ reported 6% annual revenue growth
Furthermore, for FDJ, the group also reported revenue growth of 6% year-on-year, totaling €1.3 billion, accompanied by a recurring EBITDA of €300 million, representing a margin of 23.3%, although there was a 3% drop from the €308 million recorded in the first half of 2022.
However, lottery revenue grew by just 1% to €958m, with the FDJ attributing this to a “low number” of jackpots on Loto and Euromillions in the first half.
Further success was achieved in sports betting and gaming, with the segment recording a 10% increase in revenue to €257m.
The company ended the first half of the year with a net profit of €181 million, an increase of 13% compared to the 2022 results, which were €157.5 million.
Pallez commented: “FDJ posted solid results in the first half of the year, driven by good growth in betting across our network of 30,000 points of sale, sustained momentum in digital betting and the integration of new activities.”
