FDJ drops on Q1 revenue miss, risks from Dutch regulation
18/04/2024 10:56
** Shares of French gaming group La Française des Jeux
FDJ.PA fall around 2.8%
** Co reported Q1 revenue below Stifel's estimates and its
management commented on the risks from possible new Dutch
regulation
** Group posted Q1 revenue up 7% at 710 million euros ($758
million), but around 2% below Stifel's estimates
** During earnings call on Wednesday, management commented
on the potential risks from Dutch regulation of the sector
** Stifel notes that set of motions have been filed in the
Dutch parliament to ban online advertising, introduce customer
deposit limits or even ban "high-risk" gambling games like slots
** "We recognize that regulatory issues could continue to
cloud FDJ's equity story, now fueling speculation about the
feasibility of the Kindred deal", Stifel says
** In January, FDJ offered $2.8 bln to buy Swedish online
gaming firm Kindred, and in mid-Feb, it launched a public tender
offer, but the company said Kindred's KINDsdb.ST takeover is
well on track
** If losses hold, shares on track for worst day since early
March
($1 = 0.9367 euros)
(Reporting by Gaëlle Sheehan and Michal Aleksandrowicz)
((gaelle.sheehan@thomsonreuters.com; +48 58 7785110;))