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Groupe Partouche Continues Growth in Q3 2023

French gambling operator Groupe Partouche has recently reported its Q3 financial results for FY 2023. The group has posted steady growth in the first half of the current fiscal year and continued to do so in Q3 as well. GGR for the group went up by 5.6% as compared to the same period last year. The growth was largely driven by the electronic games segment of the operator. Operations outside of France also recorded significant growth for Groupe Partouche, with its Swiss operations recording a massive growth of 47.8%.

A picture of the Eiffel Tower from the banks of a river.

French gambling operator Groupe Partouche publishes Q3 results for FY 2023. ©Chris Karidis/Unsplash

Groupe Partouche SA is a French gambling operator that owns and operates 30 casinos, including 25 in France and five abroad. The company’s casino operations make up some 80 percent of its turnover, and slot machines account for nearly 90 percent of its casino revenues. It was founded in 1973 by Isidore Partouche, who initially focused on bottling and distributing water. However, in 1987, the French government passed a law allowing casinos to be established in tourist areas, and Isidore Partouche recognized the potential of the new legislation. In 1989, the company adopted a new strategic direction beginning with the acquisitions of casinos in Fécamp, Bagnoles-de-l’Orne, and Vichy. In 2000, the Partouche Group was entrusted with the casino of a major city, Lyons, for the first time in the history of French casinos. In 2009, the company reached a preliminary deal with banks over the reorganization of its debt. Groupe Partouche continues to operate and expand its casino operations in France and abroad. The company has also entered into municipal services agreements with a maximum renewable term of 20 years with some municipalities in France. In 2018, the company released its annual report, which provides detailed financial information about the company’s operations.

Groupe Partouche has a solid financial position with a strong growth in income driven by the sharp upturn in activity. The company has sustained growth in activity over the first 9 months of the current financial year. As of 2023, the French gambling industry is thriving, with a significant portion of the market being online gambling. The France online gambling market size reached US$ 6.4 billion in 2022 and is expected to reach US$ 10 billion by 2028, exhibiting a CAGR of 7.2% during that period. Despite the COVID-19 outbreak, the online gambling market in France has continued to grow, with the integration of advanced technologies such as virtual reality (VR), three-dimensional (3D) animation, and blockchain providing an immersive and realistic gambling experience for users. In 2022, the French industry reported record betting activity during the FIFA World Cup, where the national team made it to the finals. The French people spent almost €600 million in bets on World Cup matches. Groupe Partouche has helped to expand the availability of gambling options for French citizens and tourists, by acquiring casinos around France. The gross gaming revenue (GGR) of the country has risen by 13.7% to €152.1 million, benefiting from an 18.0% increase in attendance. Industry experts are forecasting a gradual boost in earnings for the gambling industry in 2023, evaluated to get up to €29.3 Billion.

Groupe Partouche recently published its financial results for Q3 on September 12, 2023. The results show that all is on the up and up for the French operator as Q3 shows continuing growth from its first-half results of 2023. The company’s gross gaming revenue (GGR) increased by 6.5% year-on-year to €178.7 million in Q3, compared to €167.7 million in the same period last year. This increase in GGR was helped by an increase in overseas activities. Total turnover in Q3 increased by 4.1% to €105.1 million, compared to €100.9 million in the same period last year. Net gaming revenue also went up, rising from €79.5 million in 2022 to €84.6 million in the third quarter of FY 2023. The company’s strong financial position has allowed it to invest in new technologies and expand its offerings, which has helped to attract more customers as attendance went up by 4.8% YoY. Slot machines and table games increased by 5.3% and 6.8% respectively, while electronic games posted a significant increase of 9.8%. Activities outside of France also contributed to the group’s growth, as GGR outside France was at €17.2 million, an increase of 15.1% from last year. The group also reported a strong gambling performance in Switzerland, with GGR from the area up by 47.8% to €4.2 million. The company’s land-based casino in Belgium, Middelkerke, also added to the growth as it was operational for the full three months as compared to just 23 days last year. It recorded a GGR of €1.1 million.

Groupe Partouche FY 2023 first half recorded steady growth

Groupe Partouche’s first half-year financial results for 2023 were positive. After the lifting of the health measures in 2022 in Europe, the group continued to record good commercial and operational performance as it returned to normal activity. GGR for the period between November 2022 and April 2023, i.e. the first half of the fiscal year 2023, reached €341 million. This was up by 17.6% year-on-year compared to the GGR of H1 2022. Turnover for the period also went up steadily, showing an increase of 15.2% from the previous year, standing at €215.6 million.

The company’s EBITDA was €42.7 million, which is a significant increase compared to €24.6 million in the first half of 2022. The company’s financial structure was described as healthy, with a gearing of 0.1x and leverage of 0.5x. The current operating income (COI) doubled from that of H1 2022, at €19.3 million, compared to €9.7 million a year earlier. This was mostly driven by the renewed dynamism in the casino sector whose COI contributed €27 million. Overall, Groupe Partouche’s first half-year financial results for 2023 were good, with a significant increase in turnover and EBITDA compared to the same period in 2022.

Betsson entered a partnership with Groupe Partouche this year

Betsson AB, a leading online gaming company, and Groupe Partouche announced a strategic partnership in June 2023 to offer online casino services in the Belgian regulated market through the Middelkerke casino, owned by Partouche. Middelkerke, which operated for the full three months of this year’s Q3, recorded a GGR of €1.1 million during the quarter. The partnership aims to leverage Betsson’s expertise in the online gaming sector and Groupe Partouche’s market leadership in land-based casinos to deliver an attractive online casino offering tailored to the Belgian market. The offering was expected to be launched in 2023, subject to the official obtention of the license needed.

The partnership was formed after Betsson acquired Belgian sports betting and gaming operator betFIRST for a total value of €120 million, of which up to €3 million was an earnout payment subject to certain conditions being met, all payable in cash. The acquisition of betFIRST and the partnership with Groupe Partouche provided Betsson with critical access to the competitive Belgian market, a further diversified geographical footprint, and an increased share of revenue from locally regulated markets.

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Author: James Richardson