FDJ buys L’Addition software to support its diversification strategy

On July 28, La Française des Jeux announced the takeover of French software publisher L’Addition, which specializes in management, collection and payment solutions for hotel and restaurant professionals. Bordeaux, founded in 2012, offers accounting and operational functions (taking orders, sending vouchers to the kitchen, click and collect, online booking, etc.) accessible from the iPad. L’Addition has 10,000 clients and 70 employees in Paris and Bordeaux.

The operation is part of FDJ’s new strategy to develop service activities in tobacco shop and hotel-cafe-restaurant (CHR) chains. In this context, the company aims to “become the first local collection and payment network in France,” according to a press release. On July 15, FDJ has already begun acquiring Aleda, which offers similar solutions to the tobacco and newsstand world.

payments, “incremental return” axis for FDJ

The Payments & Services business is part of the new Diversification business, which includes development activities along with the legacy activities of the sports betting and lottery group. Specifically, it benefits from a major contract with the Office of the General Public Treasury that allows taxpayers to pay their fines, taxes, and other petty utility bills at tobacco stores through an FDJ payment terminal for two years. Other areas covered by diversification are international and entertainment.

These diversification activities recorded €34 million in revenue in the first half of 2022, up 13% on the previous half. Due to the investments made in their development, their margin of contribution to group results is currently negative. But in the end, they should bring “additional profit” to the group.

The group’s cash cows always provide good overall health. FDJ recorded a turnover in the first half of 2022 that grew by 12.1% to 1.2 billion euros, and a net result of 160 million euros, which is 9.4% more than a year.

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