Française des Jeux (FDJ) has potential, the acquisition of Unibet is promising

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– Française des Jeux (FDJ)

La Française des Jeux (FDJ) experienced turbulence on the stock market, while the action of the French gambling giant suffered from the proposed taxes on gaming and lottery activities announced by the new Barnier government. . In search of additional revenue in the face of the drift in public finances, it is possible that the government will slightly increase VAT on lottery and gaming activities, underlines in this regard Uzès Gestion, interviewed by Capital.

The news was busy this week for Française des Jeux, which also announced that it controlled more than 92% of its Swedish competitor Kindred (Unibet brand) following its purchase offer. A major operation which gives birth to a new giant in the sector. “Following the receipt of regulatory authorizations in France, the takeover of Kindred (Unibet) by Française des Jeux should go ahead. Perhaps the European authorities will, however, be more careful and will have an additional request?”, asks Uzès Gestion, who nevertheless judges that the request “will probably be negotiated and accepted by FDJ, which will allow it to become a certain leader lottery and games, online or paper”. And this, while in recent years, the acquisitions of ZEturf and the Irish lottery had already greatly strengthened FDJ’s base.

Française des Jeux (FDJ) will benefit from the takeover of Kindred (Unibet)

According to certain financial analysts, the acquisition of Kindred (a public purchase offer of 2.4 billion euros) should have a positive impact on FDJ’s earnings per share from 2025. “If additional price by the authorities, this will delay the effect of accretion (that is to say the positive impact on earnings per share, Editor’s note), but FDJ will have the fiscal possibility of amortizing this sum over several years. , argues Uzès Gestion. The stock price has appreciated significantly since the announcement of the acquisition of Unibet by the FDJ. The impact of this large-scale operation is partly integrated into FDJ’s share price but the stock remains attractive for the long term, according to the management company.

Française des Jeux (FDJ) offers a high dividend yield, but the stock poses regulatory risks

Positioned in segments where customers are often loyal, “La Française des Jeux’s revenues are recurring with growth slightly higher than inflation. This allows the distribution of comfortable dividends,” observes Uzès Gestion. The dividend yield is currently almost 5%. And FDJ is paid on the stock market for almost 15 times the expected profits for 2025. A valuation level that is a priori affordable. The file is however not without risks, since the financial community is still awaiting the verdict on the granting of exclusive rights to FDJ by France. And in the event of an unfavorable verdict from Brussels, the bill would potentially be hefty, with financial analysts putting forward a rating of between 0.3 and 1.5 billion euros.

What potential on the stock market for FDJ shares?

Readers of Momentum, Capital’s daily premium investment letter on the Stock Exchange, were able to make significant gains on French Games action this winter in the wake of the announcement of the upcoming takeover of Unibet. Discover our updated scenario on the prospects for FDJ shares soon in Momentum. And consult our scenarios every day on the CAC 40 and stocks listed on the stock exchange. By choosing the annual subscription, 5 months are free. To register, click on the link above in this article.