FDJ United cites that financial performance remains in-line with expectations as its enlarged enterprise adjusts to new tax conditions in France and key European markets.

H1 trading saw FDJ generate corporate revenues of €1.86bn, a figure that reflects a 31% increase on ‘reported results’ (excluding-Kindred M&A) of €1.43bn but a 2% decline on ‘restated comparatives’ (including Kindred) of €1.9bn.

Headline financials see FDJ recurring EBITDA stand at €441m, a 19% increase on like-for-like comparatives of €370m, but reflecting a 10% decline against restated metrics of €488m.

Period trading sees an enlarged FDJ post an adjusted net income of €222m, tracking 5.5% below 2024 results of €235m. FDJ’s French Lotto and Sports retail unit was its biggest revenue generator, contributing €1.29bn — up 3% on 2024 comparatives of €1.24bn.

Despite income growth, FDJ’s Lobtto unit delivered mixed results, as income was dominated by Lotto revenues of €1.06bn, while sports retail fell by 6.2% to €225m. Strong lottery sales across retail and digital offset unfavourable outcomes in the point-of-sale (POS) sports betting business.

Kindred yet to shine 

FDJ’s newly formed Online Betting and Gaming division, anchored by the acquisition of Kindred Group, posted revenues of €466m, marking an 11.5% drop against restated H1 2024 results (€526m). The downturn highlights the pressures faced by the Kindred unit amid challenging regulatory and fiscal shifts in key markets.

The Netherlands and UK weighed heavily on performance, with Kindred reporting revenue declines of -43.5% in the Netherlands and -24.1% in the UK. These sharp declines came despite increases in active player volumes, underscoring the impact of stricter player protection rules, deposit caps, and steep tax increases.

In the Netherlands, public levies on online gambling rose from 30.5% to 34.2% of GGR, while operators also faced new monthly deposit caps (€700 for most players, €300 for 18–25-year-olds).

In the UK, new regulatory enforcement and advertising restrictions have tightened customer acquisition and marketing strategies.

Despite these headwinds, FDJ cited progress in platform integration, notably the successful migration of 32Red to FDJ’s proprietary KSP platform and the merger of Parions Sport En Ligne and ZEturf accounts in France.

Recurring EBITDA for the online unit fell to €95m, with a margin drop to 20.3%, compared to 28.4% in H1 2024. Marketing costs were cut by 7.5%, and personnel expenses were reduced due to a cost-cutting programme initiated by Kindred prior to its integration.

Mixed winds for International Lotto 

FDJ’s International Lottery division, which includes Premier Lotteries Ireland (PLI), reported a revenue decline of 17% to €80m, attributed in part to the disposal of Sporting Group and a high volume of large jackpot payouts in Ireland during Q1.

However, EBITDA for the segment improved to €15m, up from €8m, reflecting improved operational efficiency and a more focused post-divestment portfolio.

Tax drag windens 

From H1 onwards FDJ will undertake significant adjustments to accommodate stringent tax increases impacting the margin of products and bottomline earnings. In France, the 2025 Social Security Financing Act introduced as 1 July 2025 increased levies across all verticals:

• Loto and Euromillions levies increased to 69% of GGR
  

• Retail sports betting: levies increased from 41.1% to 42.1%
  

• Online sports betting: levies rose sharply from 54.9% to 59.3%
  

• Online poker now taxed at 10% of GGR (up from 0.2% of stakes)

• A 15% tax on advertising and promotional expenses was also introduced

• Netherlands: As of January 2025, the public levy increased to 34.2% of GGR, compounding the effect of new player deposit restrictions introduced in Q4 2024.

These changes contributed to an effective tax rate of 40.4% in H1 2025, up from 26.9% a year earlier.

Cost base handles €1bn in enlargement projects 

H1 accounts detailed corporate costs totalling €1.43bn, reflecting FDJ’s expanded cost base following the integration of Kindred and investment in key IT platforms. 

The breakdown includes €302m in personnel expenses, €88m in IT services, and €160m in marketing spend, with central costs rising to €130m, partly due to a €14m employee share ownership charge. Management reaffirmed that 2025 remains a transition year, focused on integration execution and cost discipline.

Commenting on the performance, FDJ UNITED CEO Stéphane Pallez reaffirmed guidance and the long-term integration strategy:“2025 stands as a transition year for FDJ UNITED, with the integration of Kindred well on track. In this context, our first-half performance is in line with the expected full-year trajectory.

 We are pleased by the success of the employee share ownership plan launched by the Group, reflecting our long tradition of sharing FDJ UNITED’s value creation with all stakeholders.”

Looking ahead, FDJ UNITED maintains its full-year guidance of flat revenue growth on a pro forma basis and a recurring EBITDA margin above 24%. The Group also reaffirmed its target of reducing net financial debt by at least €150m by year-end.