2025: FDJ United Experiences a 30.7% Revenue Increase Following its Acquisition by Kindred Group
FDJ United, the French gaming and lottery company, has released its first-half 2025 financial results, revealing a complex picture of growth and challenges.
The adjusted net income for the operator stood at €222m, marking a 5.4% year-on-year decline. However, the group maintained its 2025 guidance, projecting stable revenue compared to 2024 pro-forma figures.
One of the key factors contributing to the revenue decline on a restated pro-forma basis for FDJ United in the first half of 2025 is the impact of scope changes. While FDJ United reported a 30.7% increase in revenue to €1.87bn on a reported basis, this masks a 1.7% drop when adjusted for changes in the scope of consolidation or acquisitions, which are reflected in the restated pro-forma figures.
In other words, although the overall revenue rose significantly due to acquisitions or expanded operations, the underlying business experienced a slight revenue decline when these factors were normalized. Unfortunately, the search results do not provide more detailed information on other possible drivers behind this decline, such as market conditions, competitive pressures, or operational challenges, beyond the mention of the 1.7% decrease after adjusting for scope changes.
Despite the revenue decline, FDJ United's digital lottery performance rose 15.8% to €160m, supported by over 6 million active online players. The Netherlands implemented tighter deposit limits and increased its online gaming tax to 34.2%, which may have impacted the revenue in that region, falling by 43.5%.
FDJ United also faced a sharp decline in online betting and gaming revenue, which dropped 12% to €466m. To counteract this, the company launched a new strategic plan, "Play Forward 2028," targeting 5% annual organic revenue growth and a recurring EBITDA margin above 26% by 2028.
Notable developments include the unveiling of AI-driven gaming experiences at VivaTech, including "My Scratch Card" and real-time multi-sport betting platforms. FDJ United also deployed a new in-house tool, FDJ Protect, to enhance responsible gambling monitoring.
The group's website financial update is scheduled for 15 October, where more details about the company's financial performance and future plans will be shared. Over half of FDJ United employees participated in the employee share ownership plan, and ownership through collective investment schemes now accounts for 4.6% of the company's capital.
The 2025 Social Security Financing Act in France raised public levies across all gaming formats, affecting the revenue of the French lottery and retail sports betting business unit, which recorded revenue of €1.29bn, up 3.6% in the restated figures.
In the Netherlands, revenue fell by 24.1% due to new tax and regulatory burdens. The key takeaway is that scope changes and the related accounting adjustments are the primary reasons for the observed revenue decline on a restated pro-forma basis for FDJ United in H1 2025.
FDJ United aims to reduce net financial debt by at least €150m by year-end, and the plan outlines increasing social and environmental contributions to 5% of reported net income by 2030. The net income declined sharply by 36.2% to €136m due to higher financial costs and exceptional tax contributions. Recurring EBITDA for the period stood at €441m, representing a 23.6% margin.
In conclusion, FDJ United's first-half 2025 results reveal a mixed bag of growth and challenges. While the company faces declines in certain areas, it continues to invest in innovation and responsible gambling initiatives. The upcoming financial update on 15 October will provide more insight into the company's performance and future plans.
- FDJ United, a French gaming and lottery company, reported a 5.4% year-on-year decline in its adjusted net income to €222m in the first half of 2025.
- Despite the revenue decline, FDJ United's digital lottery performance rose 15.8% to €160m, with over 6 million active online players.
- The company launched a new strategic plan, "Play Forward 2028," targeting 5% annual organic revenue growth and a recurring EBITDA margin above 26% by 2028.
- Scope changes and related accounting adjustments are the primary reasons for the observed revenue decline on a restated pro-forma basis for FDJ United in H1 2025.
- FDJ United also implemented tighter deposit limits and increased online gaming tax in the Netherlands, which may have impacted the revenue in that region.
- The company is investing in innovation, such as AI-driven gaming experiences and real-time multi-sport betting platforms, and responsible gambling initiatives like FDJ Protect.
