PMU saves its year despite a sharp drop in revenue

Near-stop a good a part of the spring; progress discovered in summer season; new blow with the second confinement: 2020 may have been an impediment course for the PMU. And the financial curiosity group (GIE), managed by the mum or dad firms of the France Galop and LeTrot racing firms, might effectively have whipped up a part of the year, it finally ends up behind on its plan however having preserved the ‘important.

Its 2020 monetary year ends with a quantity of stakes for horse racing betting in France, down by 1.3 billion euros in comparison with its 2019 degree, to six.4 billion euros, bringing the entire stakes to that of… 2002. This drop weighs on its total quantity of revenue, which thus quantities to eight.3 billion, in opposition to 9.6 billion final year, together with the taking of horse racing bets internationally ( Around 1 billion), and on the Internet sports activities betting (258 million) in addition to poker (674 million).

Disaster Avoided

The revenue of the PMU, which is used to finance the equestrian sector, fell to 640 million, in opposition to 760 million final year and a forecast of 770 million at first of the year. The web outcome brings the horse betting group again nearly fourteen years (653 million in 2006) however the dreaded industrial catastrophe in April with the prospect of a outcome plunging to 450 million in April was averted.“The year is saved, the industry is saved. The relief is general ”, feedback PMU Director General Cyril Linette. In workplace since April 2018, the previous boss of “L’Equipe” was even entitled to public congratulations from the president of France Galop, Edouard de Rothschild, for having succeeded in placing the GIE again heading in the right direction.

This rescue is as a result of resumption – behind closed doorways – of horse racing in France from May 11, but in addition to a drastic management of costs, together with using partial unemployment nonetheless efficient in December. In addition, the success of betting on horse racing on the Internet has partly offset the closure of factors of sale. For the primary time, the quantity of on-line stakes exceeded one billion euros over a year, in comparison with 811 million in 2019. Its progress, which was 8% initially of the year, has approached 30% cumulatively in December.

• Save

The PMU, which has even recorded peaks of 60% and even 80% because the second confinement, has broadened its buyer base whereas awaiting its subsequent initiatives.

New software

A brand new digital software will likely be launched in April 2021 and two bets particular to the digital channel are in preparation. The first, scheduled for May, will likely be aimed toward most of the people in the type of “the question of the day”, a mission that has been talked about for a while; the second, scheduled for the top of 2021, will relatively be aimed toward skilled turfists with the potential of betting on a number of races.

If the operator “Sets up an e-commerce vertical with a 100% dedicated team”, its managing director ensures that “Network defense” PMU is his different precedence for the approaching year. The GIE, which had dedicated 15 million euros in May to extend its commissions to tobacconists as a part of its business relaunch, has additionally simply launched 8 million further in assist of its distributors affected by the confinements.

“We cannot afford to lose 15% of our network”, emphasizes Cyril Linette and underlines that of the 13,200 PMU retailers, 1,500 are in nice issue.

However, the latter is assured, given the renewed progress of PMU excluding the confinement impact. Its 2021 finances is thus established with a forecast of web earnings of 775 million euros. “Once we are out of Covid-19, the PMU will be on a trend of over 800 million”, assures its basic supervisor.