FDJ

Analysis of FDJ share price

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Like many other investors, you have undoubtedly heard about the IPO of La Française des Jeux and you may also wish to invest in this stock. But before you start trading FDJ shares, we recommend that you take the time to study this company and the information that we will reveal here in more detail. Indeed, you must know perfectly this group and its activities but also its direct competitors or its main partners to be able to understand how this value can evolve with time. This is precisely what we propose here thanks to some relevant data about this stock.

Elements that can influence the price of this asset:

Analysis N°1

First of all, we will closely follow the evolution of the economic crisis in France. Indeed, it has been shown that during periods of major economic crisis, the French tend to play more gambling and therefore this can favor the activities of the FDJ.

Analysis N°2

We will also be closely monitoring the opportunities that FDJ could seize as part of its geographical expansion strategy with the development of its activities and the marketing of its products in Europe.

Analysis N°3

Of course, it will also be necessary to keep an eye on the increasingly important development of online games by the Française des Jeux, as this segment is still booming today.

Analysis N°4

However, it will also be necessary to keep an eye on the very strong competition in this sector of activity, particularly with regard to the online gaming segment, which is experiencing a real boom.

Analysis N°5

We will also closely monitor the evolution of regulations and laws concerning gambling, which may hinder the development of this group's activities and its profitability.

Analysis N°6

Finally, we will also follow the evolution of ticket prices, which are currently rising sharply and may also slow down purchases and therefore sales.

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General presentation of FDJ

In order to trade FDJ Group shares, you need to have a good knowledge of the company and its activities. This is why we are now proposing to discover in more detail the activities carried out by this group and its main sources of income.

The Française des Jeux or FDJ group is a French group that specializes in the gambling sector. It is also the leading operator in this sector on the French market. But to better understand the activities carried out by this group, it is also possible to divide them into two main categories and in this way according to the share of turnover they generate:

  • Lottery games are currently the FDJ Group's main source of revenue. This division includes drawing games with Loto, Euromillions and other such games and instant games such as Millionaire, Cash, Mission Patrimoine, Astro, Vegas and others. It should be noted that the FDJ is currently the second largest lottery in Europe and the fourth largest in the world.
  • The second activity of the FDJ, which was set up more recently, is that of sports betting, particularly through the Parions Sport site.

Note also that the FDJ's monopoly on lottery and sports betting at the point of sale was reinforced by the Pact law in May 2019. The FDJ currently distributes around 85 different games through the 1st proximity network in France, which has more than 300,000 points of sale, and through online games.

It should also be noted that the company's business model is still based on the promotion of responsible gambling. In addition, the FDJ is developing growth levers in parallel with certain ancillary activities such as the group's international expertise, the development of new services at points of sale and other things of this type.

FDJ shares were floated on the stock market on November 21, 2019 and made a strong entry into the market even though the trend for that session was bearish. In fact, after just one hour of trading, the stock posted a rise of over 15%. Later in the day, it would even climb to over 18.5%.

Of course and following this very strong uptrend, the stock has recorded an opposite trend with very important profit selling. It is currently and as of November 25 below the €22.40 threshold.

Analysis of FDJ share price
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The major competitors of FDJ

In addition to having a good knowledge of the activities carried out by the FDJ group, you should also be fully aware of the competition of this company in the field of gambling and sports betting. We propose you to discover them here in more details:

PMU

The Pari Mutuel Urbain is the first competitor of the FDJ. It is a French company specialized in horse betting and which designs, promotes and markets bets on horse races. But since 2010, this company has diversified its activities and now also offers sports betting and online poker. Today, PMU is still the leader in mutual horse betting in Europe and number 3 worldwide.

Flutter Entertainment

This Dublin-based company, formerly known as Paddy Power Betfair, specializes in gambling and betting.

OPAP

This is a Greek betting company that was once a state-owned enterprise and was privatized in 2013 after the economic crisis hit that country and through the Hellenic Republic Asset Development Fund.

The Star Group

Also known as Amaya Gaming, this company is based in Canada and specializes in the online betting industry. Its headquarters are located in Montreal, Quebec.

Kindred Group

This is the group formerly known as Unibet and which is an online gaming operator composed of 11 brands including the Unibet brand, Maria Casino, 32Red or iGame. The group offers online casinos, online poker, online bingo and sports betting. The company is headquartered in Malta and has offices in other parts of the world, many of them in Europe.


The major partners of FDJ

After the FDJ's competitors, we propose you to discover now who are the main partners of this group with the strategic alliances it has recently set up. We are going to give you two concrete examples of these partners which are, as you can imagine, mainly sports clubs and organizations:

NBA

In 2018, it was with the NBA that the FDJ created a partnership that made ParionsSport the official and exclusive partner of the NBA for sports betting in France. Thus and within the framework of this partnership, FDJ can now use the image of the NBA and its franchises for its sports betting activities and for its marketing communication. The group will also be able to offer its players unique experiences during NBA season games in Europe and the United States. Thanks to this partner, FDJ can also benefit from greater visibility and media coverage on all of the NBA's digital platforms in France, such as the NBA.com website and content dedicated to ParionsSport on the NBA app and social media. For its part, the NBA will benefit from being highlighted in FDJ's network of 27,000 ParionsSport points of sale and on the group's websites and social networks. FDJ will be able to offer one of the most competitive offers on the market for NBA competitions in France. It should be remembered that sports betting represents a major stake for FDJ, which is one of the 10 largest operators in this segment on the international level. This market is also important in the sense that its sales have doubled in barely ten years. Basketball is now the 3rd sport in terms of bets on ParionsSport.

Several football clubs

Finally, still in 2018, FDJ formed strategic partnerships with 4 major Ligue 1 football clubs including OM, OL, AS Monaco and FC Nantes, thus helping to boost its sports betting business. Although it did not disclose the amount invested in these partnerships, FDJ announced that the record of bets made was broken in the wake of the 2018 World Cup and stressed the importance of partnerships like this to foster sports betting.

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The factors in favour of a rise in the FDJ share price:

Finally, we will now tell you a little more about the advantages and strengths of FDJ stock and this company in general that will help you understand the opportunities and threats of this stock.

  • First of all, and despite its privatization, La Française des Jeux still has an undeniable advantage over its main competitors thanks to its distribution network, which is currently the leading local network in France.
  • Still among the main strengths of this company, we note that the FDJ offers a very wide choice of games of all kinds, which of course allows it to reach a very large market by surfing on all sorts of trends and fashions.
  • We also appreciate the strategy recently implemented by the FDJ regarding its digital offer. Indeed, for a few years now, La Française des Jeux has been making a place for itself in the online gambling and sports betting segment and is constantly developing new innovative applications to attract younger players and build loyalty among its network customers.
  • The group also offers reassuring security to its customers through Playscan technology, which is a highly sophisticated wagering control software that protects players against risk or mishandling and allows them to manage their gaming budget.
  • Finally, the group's reputation, both in France and internationally, is also an undeniable asset for FDJ.
The factors in favour of a drop in the FDJ share price:

Of course, the Française des Jeux group does not have only advantages on its market and also suffers from some weaknesses that it is important to know and compare to its strengths before studying its stock price and trying to anticipate its future movements. Here are the main weaknesses of the FDJ currently:

  • First of all, and contrary to what is observed in many other markets, the FDJ is lagging behind in the development of its online activities. Indeed, although many investments have been made in this direction, it remains a physical gaming operator in the collective mind and does not yet manage to sufficiently seduce Internet users.
  • The fact that the group has been the target of legal proceedings and has had to face certain accusations in the past is also a major problem for its brand image and continues to weigh on the confidence of some consumers.
  • Of course, the particularly intense competition in this business sector is a huge weak point for FDJ. This competition is particularly strong in certain strategic segments, such as online sports betting and online table games, where FDJ is struggling to position itself against well-established rivals.
  • The fact that FDJ concentrates its activities on the French market is also a handicap in the face of competition that is exported internationally and tends to greatly increase the risks of exposure to certain major risks.
  • Finally, the last disadvantage with which the group must contend, and therefore its last weak point, concerns the very strong regulations on gambling, which are evolving rather in favour of consumer protection. This regulation is of course an obstacle to the development of certain activities of this group.

Of course, these advantages and disadvantages are likely to change over time and must be verified before being used for analysis of the stock price.

 

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions.

Frequently Asked Questions

What is the FDJ shareholders' club?

Since its listing on the stock market, FDJ has created a shareholders' club. This club is open to any person of legal age who holds at least one share in the group and is based on four founding pillars: information, training, exchange and sharing. Every six months, this club also offers a program of events that allows you to learn about certain important things concerning the group, its businesses, its innovations, and its commitments, but also to benefit from certain advantages.

On which markets is the FDJ Group share listed?

Following its initial public offering on November 21, 2019, FDJ's share price is listed on compartment A of the Euronext Paris market. You can therefore consult its share price from this quotation place with a continuous quotation in real time during the opening hours of the French stock exchange in Paris.

How is FDJ's capital distributed?

As of November 1, 2020, the main shareholders of the Française des Jeux group are as follows. First of all, the French State remains the majority shareholder of the group with 21.91% of the shares. Then comes the veterans' association under concert with 14.78% of the shares, the employee shareholding or FCPE with 4.07% of the shares, the Predica group with 5.06% of the shares, the Soficoma company with 3% of the shares. The remainder is made up of 0.04% of treasury shares and 51.14% of free float.

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The content in question is provided for information purposes only and should not be considered as investment advice. Past performance is no guarantee of future results. The trading history is less than 5 years old and may not be sufficient to serve as a basis for an investment decision.

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