Revenue Declines on Reported Basis, But Underlying Performance Holds Firm
The Paris-listed operator — which rebranded from La Française des Jeux to FDJ United in March 2025 following its 2024 acquisition of Kindred — reported consolidated revenue of €3.68bn for the full year, down 3% on a restated basis. Group net gaming revenue declined 2.7% to €3.49bn, while gross gaming revenue edged up 0.8% on a restated basis to €8.7bn, underlining steady underlying demand even as the tax environment tightened considerably. The restated figures reflect combined Kindred and FDJ data across the full 12-month period.
The scale of the tax drag becomes clear when stripping out the Kindred business: on that basis, GGR would have been 14% higher year-on-year, and NGR would have climbed 20%. Across the group, total gaming tax levies rose 3.2% during the year, resulting in a combined tax bill of €130m at an effective rate of 42.9% — a sharp increase from 25.8% in 2024 — with €5.21bn in total fees paid to public finances. The group contributed €5.1bn to French public finances alone and supported more than 57,000 jobs across its operations.
Online Betting and Gaming Bears the Brunt
The online betting and gaming segment, which houses the Kindred brands, was the hardest-hit division. GGR fell 13.5% over the year and total segment revenue declined 11.8% to €908m. The Netherlands was the sharpest pressure point, with GGR there collapsing 38.3% following that market’s regulatory tightening. UK revenue dropped 22.4% year-on-year, reflecting a tougher operating environment and the absence of the favourable comparables from Euro 2024 that had bolstered 2024 figures.
Outside those two markets, the picture was more encouraging. GGR across other territories grew 5.6%, with Parions Sport en ligne, Unibet and ZEturf all outperforming their respective markets in certain segments, particularly in France. Active players across the online business grew by more than 10% over the year, supported by a combined marketing and responsible gaming strategy. Management described a “complete operational transformation” as underway within the division.
French Lottery Provides Stability
French lottery and retail sports betting was the only segment to report growth for the full year, with GGR rising 2.8% to €6.95bn and revenue up 1.4% to €2.54bn despite the pressure of higher domestic taxes. Lottery GGR grew 3.4%, with revenue rising 2.2% to €2.10bn. The performance was driven by new additions to the instant games catalogue and a strong run of Euromillions draw cycles — more than 50 draws during the year featured a jackpot exceeding €75m.
Online lottery was a notable growth area, with revenue climbing 8.1% to €316.2m, now representing 15% of total lottery turnover. Point-of-sale sports betting revenue dipped 2.3% to €442m against tough year-on-year comparables, though overall point-of-sale revenue edged up 0.5% to €2.22bn.
International lottery revenue fell 10.7% to €169.9m, partly reflecting the disposal of Sporting Group at the end of 2024 and the gradual wind-down of low-margin B2B contracts. The group’s payments and services business posted a 3.9% decline in revenue to €61.9m, though FDJ noted the segment is actively optimising its activity portfolio while stepping up investment in the Nirio brand.
Record Cash Flow Offsets Profit Squeeze
Recurring EBITDA came in at €902m, down 6.5%, with a margin of 24.5% — in line with targets. Recurring operating profit on a restated basis fell 5% to €565.6m. Free cash flow reached a record €782m, representing an 87% EBITDA-to-cash conversion rate, while net debt was trimmed by approximately €100m to €1.72bn with leverage stable at 1.9x.
Reported net profit dropped 56% to €175.9m, hit by asset impairments and higher financial charges stemming from the Kindred acquisition. Adjusted EPS came in at €2.02, below analyst consensus of €2.32, with the shortfall partly attributable to France’s 2025 finance law — an exceptional profits tax for companies generating over €1bn in domestic revenue that cost FDJ United €26.7m.
Tax Burden Set to Intensify in 2026
FDJ United absorbed over €50m in additional gaming taxes in 2025, a figure set to nearly double to €90m in 2026. For the year ahead, the group is guiding for slight revenue growth while targeting a stable recurring EBITDA margin of 24.5%.
Transformation Plan Running Ahead of Schedule
Management confirmed the Kindred integration is progressing well, with finance teams merged, internal tools migrated, and a new market-focused structure adopted for legal, compliance, and risk teams. FDJ United said it is running one year ahead of its internal turnaround schedule and raised its cost-savings target to more than €150m by end-2028, up from the original €120m goal.
“In 2025, we demonstrated the strength of our model and continued its transformation, in an environment affected by tax increases and tighter regulations on gaming. With a strengthened performance plan and a new organisation of its online betting and gaming business unit, the group will continue to improve its operational efficiency to return to its profitable and sustainable growth path by 2026.” — Stéphane Pallez, Chair and CEO, FDJ United
Executive Shake-Up Accompanies Restructuring
Several leadership changes accompany the restructuring of the online division. Nils Andén, who served as Kindred’s chief executive and led the brand’s integration into the group following the €2.45bn acquisition in October 2024, is departing to pursue new projects. CFO Pascal Chaffard has been named his successor as Chief Betting and Gaming Officer and Group Strategy & Transformation Officer, taking responsibility for the group’s online business arm.
Separately, Celia Verot has been appointed general secretary and chief regulatory officer. The search for a new CFO is now underway.
The group is targeting revenue growth of approximately 5% and a recurring EBITDA margin of over 26% by 2028, subject to no further deterioration in the tax environment. Shareholders will be proposed a dividend of €2.10 per share at the annual general meeting on 23 April, a slight increase from €2.05 the previous year.
FDJ United is listed on Euronext Paris (FDJU) and is a constituent of the SBF 120, Euronext 100, STOXX Europe 600, MSCI Europe and FTSE Euro indices.
Source: FDJ United
