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Investing.com - Shares of La Francaise des Jeux slipped by more than 10% on Thursday after the French gaming company called its current fiscal year one of "transition" and analysts flagged "few catalysts" on the horizon.
FDJ, whose offerings include scratch cards in France, posted first-half revenue of 1.87 billion euros, an uptick of 31% versus a year earlier but down 2% on a restated basis.
Lottery revenues rose by 6% to 1.07 million euros, fueled in large part by FDJ’s digital operations. However, point-of-sale sports betting sales dropped by 6% to 225 million euros, reflecting "unfavorable sports results" for the operator, FDJ said.
Online betting and gaming was also a weak spot of FDJ’s top-line result, slipping by 12% on a restated basis to 466 million euros, due in particular to a stronger comparison driven by last summer’s Euro football tournament as well as recent tax and regulatory policies in the Netherlands and U.K.
Excluding those two markets, revenue at the segment would be higher by 5%.
Adjusted net income stood at 222 million euros, which FDJ said reflected the impact of financing related to its acquisition of Swedish peer Kindred and "the one-off tax contribution on the profits of large French companies."
FDJ reiterated its 2025 targets for stable pro forma revenue and a recurring core income margin of over 24%.