FDJ United posts €1.87bn revenue with 36% profit drop

FDJ United, the newly rebranded French gaming and lottery group, has reported consolidated revenue of €1.87 billion for the first half of 2025. This marks a 30.7% increase compared to the same period in 2024 on a reported basis. However, when results are adjusted to reflect the Kindred Group acquisition as if it had been completed at the beginning of 2024, revenue actually shows a marginal decline of 1.7%.

The decline on a restated basis reflects a challenging regulatory environment in several key markets and underperformance in certain segments, particularly within online gaming and betting operations in the United Kingdom and the Netherlands.

Despite the rise in reported revenue, the group's net income declined significantly by 36.2% to €136 million, impacted by exceptional tax contributions in France and financing costs related to the Kindred acquisition.

Rebranding and structural transformation

In March 2025, FDJ announced a major corporate rebrand, changing its name from La Française des Jeux to FDJ United. This development followed a series of strategic acquisitions, notably involving Kindred Group, Premier Lotteries Ireland, and ZEturf. These transactions marked a strategic shift aimed at strengthening FDJ’s footprint across regulated European markets.

The rebranding reflects a unification of its business lines and signals a commitment to operating under a single identity. This transformation also led to the reorganisation of FDJ United’s business model into four key divisions:

• French lottery and retail betting
• Online betting and gaming
• International lottery
• Payments and services

The simplified operational structure aims to enhance transparency in financial reporting and strengthen strategic management across FDJ United’s expanding presence in European markets.

Analysis of revenue by segment

French lottery and retail betting sees steady gains

FDJ United’s French-based lottery and betting activities generated €1.29 billion in revenue during H1 2025, up 3.6% compared to the same period in 2024. Within this category, lottery revenue reached €1.07 billion, representing a 5.8% year-on-year increase. The growth was primarily driven by solid demand for draw-based games and the successful launch of a new lottery product titled Royaume d'Or.

In contrast, revenue from retail sports betting declined by 6.2%, amounting to €225 million. The company attributed this decline to unfavourable sporting outcomes, which led to lower margins, despite a 3.6% increase in stakes placed by players.

Online betting and gaming hit by UK and Dutch markets

Online betting and gaming experienced a sharp decline of 11.5%, with revenue falling to €466 million. This drop was attributed to regulatory changes and market saturation, particularly in the UK and the Netherlands—two regions that accounted for a significant portion of FDJ United’s digital revenues prior to the acquisition of Kindred.

However, when excluding these two markets, FDJ noted a 4.5% growth in online revenue across other jurisdictions. This suggests that the group’s diversified European presence has helped partially offset the downturn in these more heavily regulated environments.

FDJ anticipates a stronger performance in its online segment during the latter half of 2025, supported by more favorable year-on-year comparisons and the introduction of fresh promotional initiatives within regulated markets.

International lottery revenue and divestments

The group’s international lottery revenue declined by 16.9% to €80 million. This downturn reflects both the strategic divestment of Sporting Group and a less active jackpot cycle in the Irish market. The sale of Sporting Group was completed as part of a broader rationalisation of the group’s non-core international assets.

Payments and services remain flat

FDJ United’s payments and services segment recorded revenue of €31 million for H1 2025, which is flat compared to the previous year. This segment includes non-gaming services such as payment facilitation and financial services available through the FDJ retail network.

Profitability pressures due to tax and financing

EBITDA and margin trends

FDJ United’s recurring EBITDA for the period was €441 million, down from €493 million on a restated basis. This decline corresponds to an EBITDA margin of 23.6%, reflecting rising operational costs and integration expenses linked to recent acquisitions.

Decline in net income

The group’s reported net income fell by 36.2% to €136 million. This decline was largely attributable to two exceptional items:

• A €21 million one-off corporate tax contribution in France, implemented as a temporary levy on large enterprises
• Increased debt servicing costs associated with the financing of the €2.5 billion acquisition of Kindred Group
• When adjusting for these non-recurring expenses, the group’s net income stands at €222 million, down 5.4% year-on-year.

Increased tax burden and financial debt

FDJ United’s total tax expense increased from €77.6 million in H1 2024 to €90 million in H1 2025. The increase stems primarily from France’s temporary corporate contribution policy targeting high-earning companies.

Meanwhile, net financial debt rose to €1.96 billion as of June 30, 2025, up from €1.82 billion at the end of 2024. The rise in debt levels is largely attributed to the financing arrangement implemented for the Kindred acquisition.

Strategic acquisitions and compliance

The Kindred acquisition and EU compliance

FDJ United finalized its acquisition of Kindred Group in 2024, securing control of one of Europe’s leading online gambling companies. The €2.5 billion transaction was subject to regulatory scrutiny, including an investigation by the European Commission into potential state aid implications.

In late 2024, the European Commission concluded that the acquisition complied with EU state aid rules, enabling FDJ United to move forward with integration plans. The deal significantly expanded the company’s online presence and gave it a foothold in multiple new jurisdictions, particularly in Northern and Western Europe.

Other key acquisitions

FDJ also completed the acquisitions of Premier Lotteries Ireland and ZEturf in 2024. These additions contributed to the group's full-year 2024 revenue of €3.07 billion and a net profit of €399 million.

These strategic moves reflect FDJ United’s ambition to position itself as a pan-European gaming operator with both physical and digital assets across multiple verticals.

Outlook for the remainder of 2025

FDJ United has expressed cautious optimism for the second half of the year. Management expects several factors to contribute to improved performance:

• Easier year-on-year comparisons in online gaming
• Expanded promotional campaigns
• Full integration of Kindred assets and enhanced cross-market synergies
• Potential regulatory stabilisation in the UK and Netherlands

The group will publish its Q3 2025 revenue results on 15 October. Analysts and investors will be closely watching for signs of recovery in the online segment and further clarity on debt reduction strategy.

A new phase in FDJ United’s growth strategy

The first half of 2025 represents a transitional period for FDJ United as it absorbs the operational and financial impacts of its ambitious acquisition strategy. While headline revenue growth appears strong on a reported basis, underlying results reveal margin pressure, debt accumulation, and market-specific challenges.

Nonetheless, the group remains financially sound and continues to invest in innovation and diversification. If market conditions stabilise and integration efforts deliver the expected cost and revenue synergies, FDJ United may be well-positioned for long-term growth across Europe’s regulated gaming sector.

Conclusion

FDJ United’s first-half 2025 results mark a pivotal period in the company’s transformation from a nationally focused lottery operator to a diversified European gaming group. While the reported revenue growth underscores the scale of its recent acquisitions, the restated figures reveal the financial pressures tied to integration, regulatory headwinds, and rising debt costs.

The decline in net income and profitability is not unexpected given the one-off tax burden and the significant financing required for the Kindred acquisition. Nonetheless, FDJ United remains on a strategically sound path, having restructured its operations, expanded its market presence, and diversified its portfolio in both land-based and digital channels.

With the consolidation of Premier Lotteries Ireland, ZEturf, and Kindred now largely complete, the group is entering a critical phase where execution will determine the long-term success of its expansion strategy. Focused efforts on operational efficiency, regulatory adaptation, and digital innovation will be key to unlocking future growth.

While the performance in key online markets such as the UK and Netherlands presents near-term challenges, FDJ United’s broad geographical reach and diversified business model provide resilience. If the company can deliver on its integration goals and adjust to evolving market conditions, it remains well-positioned to strengthen its role as a leading player in Europe’s regulated gaming landscape.

FAQs

What was FDJ United’s total revenue for H1 2025?
FDJ United reported revenue of €1.87 billion for the first half of 2025, marking a 30.7% increase year-on-year on a reported basis.

Why did FDJ United's net income fall by over 36%?
Net income declined due to a one-time corporate tax contribution in France and increased financing costs associated with the Kindred acquisition.

What impact did the Kindred acquisition have on FDJ United’s financials?
The Kindred deal added scale and market reach but also increased debt and financing costs, contributing to a lower net income for H1 2025.

How did FDJ United perform in the online segment?
Online betting and gaming revenue fell 11.5%, largely due to regulatory constraints in the UK and Netherlands, though growth occurred elsewhere.

What is Royaume d'Or?
Royaume d'Or is a new draw-based lottery product launched in France, contributing positively to lottery revenue growth.

How is FDJ United structured after its rebrand?
The company is now organised into four divisions: French lottery and betting, online gaming, international lottery, and payments and services.

What regulatory changes affected FDJ United?
Changes in gambling laws and licensing frameworks in the UK and Netherlands impacted revenue from those markets during H1 2025.

Was the Kindred acquisition approved by EU regulators?
Yes, the European Commission confirmed the acquisition complied with state aid rules in late 2024.

What are FDJ United’s expectations for H2 2025?
The company anticipates stronger online performance, improved promotional activity, and potential regulatory stabilisation.

When is the next financial update from FDJ United?
The company will publish its Q3 2025 revenue figures on 15 October 2025.