Softer lottery sales and higher gambling taxes across Europe have burdened FDJ United’s first-half results, as leadership confirmed the deployment of fresh mid-term commercial changes to overcome current challenges.
The group posted gross gaming revenue (GGR) of €4.31bn, down 1.3% on H12025 comparatives of €4.38bn, as net revenues declined by 4.5% to €1.78bn (H12025: €1.8bn).
Recurring EBITDA fell 8.4% to €404m (H12025: €441m), reflecting a decline in operating margin of 22.7% (24.5%). Topline impacts are attributed to higher gaming taxes in France, the UK, the Netherlands and Romania – which, for a consecutive quarter, FDJ noted a headline impact of €52m.
The group’s consolidated accounts reported a 19% net profit decline to €180m (H12025: €222m). Period trading is closed with FDJ reporting a net loss of €16m, primarily attributable to €135m in impairment charges.
Adjusted net profit fell 19% to €180m (H12025: €222m). However, the group reported a statutory net loss of €16m, reflecting a €135m impairment charge connected to Euro tax adjustments and costs attached to former assets of Kindred’s online gambling businesses.
FDJ needs fix for soft lotto
Of concern to leadership, for the second quarter FDJ reported a decline in French lottery sales to €503m.
Lottery GGR fell 2.1% to €2.98bn from €3.04bn in H1 2025, while revenue declined 4.0% to €1.02bn from €1.06bn, as the first half featured significantly fewer high-value Euromillions jackpots than the comparable period last year.
Retail sales were also affected by exceptional heatwaves that reduced customer footfall across France.
Management argued that underlying demand remained stronger than the headline figures suggest. Excluding extended Euromillions jackpot cycles, lottery GGR increased 1%, while online lottery GGR rose 6%, highlighting the continued migration towards digital channels.
Retail sports betting also softened, with GGR declining 1.1% to €450m from €455m, while revenue fell 2.9% to €218m from €225m. However, trading improved during the second quarter as a stronger sporting calendar drove customer activity.
Kindred moves to stable status
FDJ’s online betting and gaming division, which incorporates the former Kindred assets acquired in 2024, performed broadly in line with management expectations despite a heavier tax burden.
Online GGR was broadly flat at €702m compared with €703m in H1 2025, while revenue declined 7.4% to €431m from €466m after higher gaming taxes across several regulated markets reduced net gaming revenue.
Beneath the headline figures, however, regional performance was mixed.
Excluding the UK and the Netherlands, online GGR increased 6.6%, while revenue edged 0.6% higher, driven by strong performances in France and the Nordic markets.
The Netherlands also continued its recovery following regulatory disruption. After GGR declined 15% year-on-year in the first quarter, the contraction narrowed to 4.1% in Q2 as customer activity improved.
The UK remains the weakest-performing market within the online portfolio. Management said restructuring measures, revised marketing priorities and improvements to the player experience are expected to begin delivering results before the end of 2026.
A new leadership team has been tasked with accelerating the turnaround through more focused marketing investment and operational improvements.
International lottery grows as B2B portfolio is streamlined
FDJ’s International Lottery business delivered modest growth, with revenue increasing to €81m from €80m and recurring EBITDA rising to €17m from €15m in H1 2025.
Growth was led by Premier Lotteries Ireland (PLI), which continued to perform strongly across both retail and digital channels.
By contrast, the group’s B2B lottery business contracted after management chose to exit several lower-margin contracts as part of a broader optimisation programme aimed at improving profitability rather than pursuing scale.
Pallez: FDJ to return to fundamentals
Despite the softer first-half performance, Chairwoman and Chief Executive Officer, Stéphane Pallez, said the group’s long-term outlook remained intact:
“The Group’s performance in the first half is still affected by higher taxation, alongside factors inherent to the lottery business and the impact of exceptional heatwaves which have weighed on traffic at points of sale in France.
“Backed by solid fundamentals and a robust financial structure, FDJ UNITED continues to invest in innovation, the attractiveness of its product portfolio and the acceleration of its transformation to return to a path of sustainable, profitable and value-creating growth.”
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