Leadership of FDJ United has branded 2025 as a year of “adverse factors on commercial environments” while maintaining that its a year ahead in the delivery of key operating projects and cost-saving synergies.

The Paris Euronext gambling group sees headline wagering maintained at €8.7bn (flat 0%) on a ‘restated bases’ across its enlarged business, that is formed of FDJ (French lotteries and sports), Kindred Group (online gambling), Premier Lotteries Ireland (lotteries international), ZeTurf (French racing) and FDJ B2B (payments and retail tech).

In a separate update to its trading, FDJ revealed that following the full integration of Kindred Group, the former CEO of the Swedish company, Nils Anden, will be leaving the French firm.

FDJ acquired Kindred for €2.45bn in 2024, and Anden subsequently joined the new combined entity as Chief Online Betting and Gaming Officer. Anden is now departing to pursue ‘other projects’, and will be replaced in his role as COBO by Pascal Chaffard, the company’s Chief Financial Officer, Strategy and Performance.

The transformation of FDJ into FDJ United following the integration of Kindred and its Unibet and 32Red took a step forward earlier this week with the confirmation that Parions Sport will migrate into Unibet.fr next month.

But with taxes up across Europe, and regulatory regimes tightening up, is the timing ideal?….

Tough times for a transformation?

Year trading sees group revenues stand at €3.68bn down 3% on FY2024’s comparatives of €3.78bn. Group EBITDA declined by 6% to €902m from €964m reported in FY2024.

Group accounts underline new tax treatments across all core markets as the determining factor of FDJ’s headline declines. On a yearly basis, gambling taxes increased by €50m added to its corporate tax bill of €130m alongside €5.2bn generated for public levies of lottery contracts.

Commercial adjustments were needed in its home market of France, as the 2025 Social Security Financing Act imposed higher GGR levies across lottery and betting verticals, alongside a new 15% tax on advertising and promotional spend, materially increasing the Group’s fiscal burden from 1 July 2025.

Chairwoman and CEO Stéphane Pallez sought to contextualise the performance, stating: “In 2025, FDJ UNITED demonstrated the strength of its model and continued its transformation, in an environment affected by tax increases and tighter regulations on gaming.”

French lotto la resistance 

The French Lottery and Retail Sports Betting unit remains the earnings engine of FDJ United. On a full-year basis, French lottery and retail sports betting GGR rose 2.8% to €6.95bn (€6.76bn FY2024 restated), with revenue up 1.4% to €2.54bn (€2.50bn FY2024 restated).

Lottery GGR grew 3.4%, split evenly between draw games and instant products. Online lottery revenue climbed 8.1% to €316m (€292m FY2024), with player numbers exceeding six million. Digital now accounts for more than 15% of lottery activity (approx. 14% FY2024).

Retail sports betting revenue declined marginally by 2.3% to €442m (€452m FY2024), reflecting tough comparisons against Euro 2024.

The French unit delivered recurring EBITDA of €913m (€887m FY2024 restated), with margins improving to 36% (35.4% FY2024).

Kindred… Dutch and UK exposures  

As mentioned above, the integration of Kindred into an enlarged Online Betting and Gaming (OBG) unit was completed during the year.

Online GGR declined 8.1% to €837m (€968m FY2024 restated), while revenue fell 11.8% to €908m (€1.03bn FY2024 restated). Recurring EBITDA dropped to €182m (€293m FY2024 restated), with margins compressing to 20% (28.5% FY2024).

Activities in the Netherlands proved costly, reporting an income decline of 38% and GGR falling 42.1%, following tax increases and continued adjustments to new regulations.

Kindred’s UK unit saw GGR decline 22.4% year-on-year, reflecting higher compliance costs on customer onboarding due to affordability checks. 

Across other markets, GGR rose 5.6% and revenue increased 1.3% as FDJ noted improved results in Romania. Active players across the Online division increased by more than 10% year-on-year – though metrics were not disclosed on account.

Kindred historically has accounted for a player base of +1.5m on a quarterly basis. 

Haircut on profits 

Closing FY2025 accounts, FDJ’s adjusted net income remained broadly stable at €487m (€490m FY2024). Group net debt reduced to €1.72bn (€1.82bn FY2024), as FDJ trades at a leverage of 1.9x EBITDA stable with 2024 metrics prior to enlargements.

Recurring operating income stood at €566m (€595m FY2024 restated). Operating profits were halved to €176m down from €399m as bottom-line results on accounts reflect  FDJ trading at impairments and higher effective tax rate of 43% versus 26% in  FY2024. 

2026 guidance and fiscal drag

Moving into 2026, FDJ United expects slight revenue growth in 2026, with EBITDA margins stable at approximately 24.5% (24.5% FY2025).

However, the group cautions that it will incur a minimum of €90m in additional gambling taxes in 2026, reflecting further increases in the Netherlands and the UK beginning a new gambling tax plan as of 1 April 2026.

On a constant tax basis, management maintains medium-term targets of revenue growth accelerating toward 5% by 2028 and EBITDA margins exceeding 26% (24.5% FY2025 baseline).

Projects, saving and investor rewards 

FDJ delivered €50m in cost savings during 2025 (€20m originally targeted), bringing forward the achievement of its 2026 performance milestone by one year. The cumulative savings objective has been raised to €150m by 2028 (€120m prior target).

Operational projects included completion of the Kindred integration, sportsbook platform migrations, consolidation of French online brands under Unibet, and expansion of branded retail outlets (500 openings FY2025).

The Board has proposed a dividend of €2.10 per share (€2.05 FY2024), representing an 80% payout ratio (80% FY2024).

Closing the annual statement, Pallez emphasised the longer-term ambition: “With a strengthened performance plan and a new organisation of our online betting and gaming business, the Group will continue to improve its operational efficiency to return to its profitable and sustainable growth path by 2026.”