FDJ reports 29% rise in Q3 revenue amid tax pressures

French lottery and gaming operator FDJ United has reported robust financial results for the third quarter of 2025, revealing total revenue of €864 million, marking a 29% year-on-year increase. While this headline growth underscores the company’s continued market strength, the operator also noted a 3% decline on a restated basis, primarily due to the accounting adjustments following its acquisition of Kindred Group and the impact of heightened taxation within France’s gaming sector.

The results, released as part of FDJ’s ongoing financial transparency initiatives, highlight both resilience and challenges as the company navigates evolving regulatory frameworks and shifting consumer behaviors in its core and international markets.

Understanding the restated results

FDJ’s reported 29% growth figure appears highly positive at first glance. However, when examined on a restated basis—assuming that the Kindred acquisition had taken effect from the beginning of 2024—the figures suggest a more nuanced reality. The company’s Q3 2024 restated revenue stood at €890 million, against which the latest €864 million represents a 3% contraction.

The restated approach allows stakeholders to evaluate FDJ’s organic performance excluding extraordinary growth effects from acquisitions. This adjustment, often employed in post-merger financial reporting, provides a clearer perspective on operational sustainability and real growth trends.

In FDJ’s case, the company attributes part of this decline to the higher taxation imposed on France’s betting and lottery industries starting 1 July 2025, as well as softer performances in certain unspecified international markets. Without these external pressures, FDJ estimates that the decline would have narrowed to approximately 0.7%, indicating stable underlying fundamentals.

Year-to-date performance remains strong

Despite the restated contraction, FDJ’s cumulative financial performance for the first nine months of 2025 remains notably strong. The company reported total revenue of €2.73 billion, representing a 30.2% year-on-year increase from 2024. When restated for comparison, this figure shows a 2.1% decline, reflecting similar dynamics seen in the quarterly breakdown.

The year-to-date results affirm FDJ’s solid position as a leading operator in the European gaming market, bolstered by the integration of Kindred’s assets and the expansion of its retail lottery and sports betting operations. The figures also underscore the company’s ability to maintain significant revenue streams despite regulatory headwinds and market saturation in mature regions.

Segment performance: contrasting outcomes across divisions

FDJ’s third-quarter performance revealed a mixed picture across its operating segments, reflecting the diverse nature of its business model.

Lottery and retail sports drive growth

The lottery and retail sports betting division emerged as the company’s key revenue driver, generating €595 million during Q3 2025. This segment achieved a 2.5% increase compared with the restated Q3 2024 results, showcasing resilience in traditional gaming channels and sustained consumer engagement across France’s retail network.

Lottery remains the cornerstone of FDJ’s portfolio, accounting for the majority of its revenue base. The company’s ability to modernize its retail experience—through digital integration, cross-promotional campaigns, and enhanced player engagement—continues to deliver positive results despite macroeconomic pressures.

Online betting and gaming face decline

In contrast, FDJ’s online betting and gaming operations recorded a 15.6% year-on-year decline on a restated basis, settling at €209 million for the quarter. The company attributed this contraction to intensified competition in certain European jurisdictions, evolving consumer preferences, and the tax increase that came into effect mid-year.

This segment’s performance reflects broader trends observed across Europe’s online gambling sector, where stricter advertising controls, compliance costs, and regulatory oversight have reshaped growth dynamics. FDJ’s leadership has indicated that the company will continue refining its online strategy, focusing on sustainable profitability rather than short-term expansion.

International and payment services

FDJ’s international lottery business generated €44 million, marking a modest 0.3% increase compared to the restated results from Q3 2024. Meanwhile, payment and services revenue declined slightly by 1.8%, amounting to €16 million for the period. These figures suggest a steady but cautious performance outside FDJ’s core domestic markets, where regulatory variations and operational integration challenges continue to play a role.

Strategic outlook and future guidance

Looking ahead, FDJ remains confident in its full-year 2025 targets, maintaining its projected €3.7 billion revenue goal. As of the third quarter, the company remains approximately €1 billion short of this target, but executives have expressed optimism that the final quarter—traditionally a strong period for lottery activity—will help bridge the gap.

FDJ has also reaffirmed its recurring EBITDA target of €900 million for the year, reflecting an expected EBITDA margin of 24%. This guidance underscores management’s commitment to disciplined financial governance and operational efficiency, even as the company navigates evolving fiscal landscapes.

Looking further ahead, FDJ’s medium-term plan remains guided by its Play Forward 2028 strategy, which envisions an annual organic revenue growth rate of 5% by 2028. The strategy emphasizes digital transformation, sustainable operations, and an enhanced player experience, underpinned by responsible gaming commitments and innovation-driven product development.

CEO commentary and strategic direction

Commenting on the quarterly results, Stéphane Pallez, Chairwoman and CEO of FDJ United, stated:

“The change in FDJ United's revenue at the end of September reflects the prolonged decrease in our online betting and gaming business in certain markets and the impact of higher taxation on gaming, particularly in France since 1 July.

In this context, the Group deepens its transformation and performance plan in 2025, and pursues the operational implementation of its strategy, in line with the growth objectives of its Play Forward 2028 plan.”

Pallez’s remarks highlight the dual reality facing FDJ—strong operational performance in traditional sectors alongside structural challenges in digital channels. Her statement also reaffirms the company’s long-term focus on innovation, efficiency, and sustainability rather than short-term revenue spikes.

Navigating regulatory and fiscal challenges

The French government’s recent taxation changes have presented notable challenges for gaming operators. The increase in gaming-related taxes, effective from July 2025, has directly impacted profit margins across both lottery and betting sectors. FDJ’s acknowledgment of this policy shift illustrates a proactive approach to managing fiscal impacts while maintaining transparency with shareholders and the public.

Moreover, FDJ’s commitment to regulatory compliance remains central to its operations. The company has consistently aligned its practices with national and European Union standards on responsible gaming, data protection, and anti-money laundering. This compliance-driven model enhances investor confidence and mitigates potential reputational risks within an increasingly scrutinized industry.

Integration of Kindred Group assets

The ongoing integration of Kindred Group, acquired by FDJ earlier in 2025, has significantly influenced both the company’s reported and restated results. The acquisition strengthened FDJ’s international footprint, particularly across Northern Europe, and expanded its technological infrastructure and online expertise.

However, such integrations inevitably come with transitional costs and operational complexities. FDJ’s restated accounting approach, which assumes Kindred’s inclusion from January 2024, aims to provide investors with a more balanced view of the post-merger business trajectory. This strategic acquisition is expected to yield long-term synergies, bolstering FDJ’s position in competitive European markets while diversifying its digital offerings.

Market positioning and growth potential

Despite regulatory challenges, FDJ continues to be viewed as one of Europe’s most stable and innovative gaming operators. Its diversified portfolio—spanning retail lottery, sports betting, online gaming, and payment services—offers resilience against market volatility.

The company’s continued investments in digital technology, player protection, and cross-border operations suggest a long-term strategy centered on sustainable growth. Furthermore, the success of its Play Forward 2028 initiative could position FDJ as a leading force in balancing profitability with social responsibility in the global gaming landscape.

Conclusion

FDJ’s third-quarter 2025 results reflect both strength and transition. The €864 million in quarterly revenue, while down slightly on a restated basis, underscores a robust business model capable of absorbing fiscal and regulatory shocks. The operator’s strong retail lottery and sports betting performance continues to offset headwinds in online gaming, while strategic acquisitions like Kindred Group lay the groundwork for future growth.

As FDJ advances towards its year-end goals and its 2028 strategic milestones, the company’s focus on transformation, compliance, and innovation remains central. In an evolving European gaming environment, FDJ’s disciplined approach positions it well to navigate short-term pressures while sustaining long-term value creation.

FAQs

What was FDJ’s total revenue for Q3 2025?
FDJ reported total revenue of €864 million for Q3 2025, marking a 29% increase from the same quarter last year.

Why did FDJ’s revenue decline on a restated basis?
The decline of 3% on a restated basis reflects adjustments made to account for the Kindred acquisition as if it had occurred in early 2024.

How much revenue did FDJ generate in the first nine months of 2025?
The company’s year-to-date revenue reached €2.73 billion, up 30.2% year-on-year.

Which segment performed best for FDJ in Q3 2025?
The lottery and retail sports betting segment was the top performer, generating €595 million in revenue.

What caused the decline in online betting and gaming revenue?
Online revenue fell due to higher taxation in France, regulatory constraints, and weaker performance in some markets.

What are FDJ’s full-year 2025 targets?
FDJ expects to achieve €3.7 billion in total revenue and €900 million in recurring EBITDA for 2025.

How has taxation affected FDJ’s profitability?
Increased gaming taxes introduced in July 2025 have slightly reduced margins, particularly in lottery and betting operations.

What is FDJ’s Play Forward 2028 plan?
It is the company’s long-term growth strategy aiming for 5% organic annual revenue growth by 2028, emphasizing innovation and sustainability.

What impact did the Kindred acquisition have?
The acquisition expanded FDJ’s international presence and digital capabilities but also influenced restated comparisons.

How does FDJ plan to sustain growth amid challenges?
FDJ focuses on operational efficiency, responsible gaming, and digital innovation to ensure long-term stability and expansion.