FL Entertainment has ushered in a new era of prosperity with its financial results for the year ending 31 December 2023, evidencing a prominent upsurge in revenue to €4.32bn (£3.69bn/$4.73bn). This impressive figure not only surpasses the €4.05bn reported in the preceding year but also underscores the successful growth across the company’s two pivotal divisions: online gaming and sports, along with content production and distribution.
In the domain of online gaming and sports, FL Entertainment observed remarkable growth, particularly through Betclic Everest Group, which operates prominent portals such as German-facing Bet-at-home.com and Betclic. This segment of the business significantly outpaced others in terms of expansion, solidifying its standing in the industry.
The content production and distribution segment did not lag far behind, enjoying modest revenue growth, bolstered by strategic acquisitions secured over the course of the year. This division continues to represent the majority of the group’s revenue, signaling its central role in FL Entertainment’s business model.
The commendable growth was aptly acknowledged by CEO François Riahi, who expressed optimism for sustained prosperity in 2024. Illustrating robust performance, he highlighted a 30% increase in revenue and a 26% rise in adjusted EBITDA since the company went public two years ago. Additionally, Riahi emphasized a significant uptick in revenues from over-the-top (OTT) platforms in content production by 75%, and the promising expansion into the live experiences market through mergers and acquisitions.
An in-depth analysis of the figures from 2023 revealed that online gaming and sports betting alone generated €996.2m, charting a growth of 19.3% compared to €835.0m in the previous year, despite 2022 boasting revenue from events like the FIFA World Cup. The group attributed this remarkable performance to the sustained momentum of unique active players, successful customer retention post-World Cup, and general commercial development.
Sportsbook revenue grew by 14.4% to €766.4m, with other segments including casino, poker, and turf reporting increases of 47.7% to €154.7m, 23.1% to €154.7m, and 33.3% to €13.7m respectively. Touting a resolute dedication to responsible gaming, with 99% of revenues stemming from locally regulated markets, FL Entertainment has fortified its leadership position within France, Portugal, and Poland, and has tactically ventured into new territories like the Ivory Coast, with plans to further penetrate the African market.
On a different note, utilization of funds saw an uptick in external expenses by 12.0% to €2.30bn, though personnel and restructuring costs noted a decline. This prudent fiscal management enabled the company to turn a profit, marking a steep 59.8% growth in operating profit at €400.5m. After accounting for net finance costs, a stark contrast was apparent with a pre-tax profit of €151.8m, compared to the previous year’s loss of $8.3m.
Subsequent to a €78.2m tax payment, FL Entertainment stood with a net profit of €73.6m, a winning turnaround from the €85.2m loss seen in 2022. Additionally, adjusted EBITDA further increased by 10.6% to €736.7m.
The group also reported on its adjusted net profit, which discounts various expenses such as restructuring costs and accounts for other finance income. Consequently, the adjusted net profit reached €323.2m, marking a healthy 6.8% growth from 2022’s €302.6m.
Looking toward the horizon of 2024, FL Entertainment holds confidence in continued growth, banking on its unique strengths, agile business model, and emerging consumer trends. It anticipates high-single digit organic growth for Adjusted EBITDA.
CEO Riahi asserts confidence in the company’s trajectory, focusing not only on steady growth but also on expanding their free float and stock liquidity to maximize shareholder value. FL Entertainment’s robust positioning in the global entertainment landscape is expected to underpin its success as it forges ahead into the future.
