FINANCIAL REPORT - Française des Jeux

28 — 2010 FINANCIAL REPORT
CONSOLIDATED STATEMENT OF CHANGE IN EQUITY
In thousands of euros
Share
capital
Consolidated
reserves
Equity at 31 December 2008 76,400416,05119,22812
Other transferable equityT ranslation
adjustment
Income and expenses recognised directly in equity* 7,961
Net income for 2009
Total income and expenses for the period--7,961-
Allocation of 2008 net income 116,898
2008 dividends paid - 92,000
Change in translation differences - 150
Equity as at 31 December 2009 76,400440,95027,189- 138
Income and expenses recognised directly in equity*
Net income for 2010
3,404- 19,743
Total income and expenses for the period-3,404- 19,743-
Allocation of 2009 net income 85,026
2009 dividends paid - 84,000
Change in translation differences 888
Equity as at 31 December 2010 76,400445,3807,446750
* Income and expenses recognised directly in equity consist primarily of changes in the fair value of assets and related taxes.
NOTES
1
GENERAL INFORMATION OF THE GROUP
1.1. GENERAL INFORMATION
La Française des Jeux is a semi-public limited company under
French law, subject to all the laws on commercial companies in
France, in particular the provisions of the French Commercial Code
and the provisions of the legal framework as described in Note
1.2. Its registered offi ce is located at 126 Rue Gallieni, 92643
Boulogne-Billancourt.
The French government holds 72% of la Française des Jeux, and
the Group’s consolidated fi nancial statements are integrated in
the government's combined accounts of its shareholdings.
Following the opinion of the Audit Committee of 14 March 2011,
the Board of Directors on 23 March 2010 approved the
consolidated fi nancial statements, which will be fi nal after their
approval by the Annual General Meeting of 26 May 2011.
1.2. BACKGROUND OF LA FRANÇAISE DES JEUX GROUP
(“THE GROUP”)
La Française des Jeux operates in a regulated environment. Whereas
the law of 21 May 1836 prohibited lotteries of any kind, Article 136 of
the Finance Law of 31 May 1933 repealed this general prohibition by
authorising the government to create the National Lottery as follows:
“Within one month after the date of promulgation of this Law, the
Government shall specify by decree the terms and conditions for
organising and operating a lottery….” Numerous decrees and orders
have since specifi ed the terms and conditions of the National Lottery.
The decree currently governing the organisation and operation of
the lottery games authorised by Article 136 of the law of 31 May 1933
is Decree No. 78-1067 of 9 November 1978, as amended. It delegates
the organisation and operation of games to a government-owned
company originally known as “Société de la Loterie Nationale et du
Loto National”, which then took on the name France Loto, followed
by la Française des Jeux.
This decree conferred upon the company the organisation and
operation of the games existing at the time: Loterie Nationale and Loto
National. Subsequently, other products were launched: Tac O Tac in
1984, Loto Sportif in 1985, scratch games starting in 1989, Keno in
1993, Rapido in 1999, fi xed-odds sports betting in 2003, Euro Millions
in 2004 and BINGO LIVE ® in 2009.