FDJ United “fully committed” to UK and the Netherlands as tax hikes bite
Results were down in Q1, but FDJ hopes to turn performance around.
France.- The French gambling giant FDJ United sees the UK and the Netherlands as key to reviving its fortunes after a dip in Q1 revenue. While gross gaming revenue (GGR) rose by 1 per cent year-on-year to €2.18bn for the quarter ending March 31, earnings were down 3 per cent to €895m amid a €24m tax hit.
The online betting and gaming division, which comprises the operations gained through its acquisition of Kindred, saw GGR drop by 1 per cent to €342m and earnings by 8 per cent to €213m. That was largely due to another rise in gambling tax in the Netherlands from January. The UK’s remote gaming tax hike this month is likely to add to the company’s woes.
French lottery and retail sports betting delivered stable GGR of €1.74bn, but profit fell 2 per cent to €627m after an extra €15m in taxes. The company also cited temporary factors, including less attractive sports fixtures and a high payout ratio in retail betting. Point-of-sale revenue in France dropped 3 per cent to €546m, while online lottery revenue rose 1 per cent to €81m.
New CFO Dan Lévy, who recently joined the company from Ipsos, said his team is “fully committed” to restoring performance in the UK and Netherlands.
Lévy took the helm in finance after Pascal Chaffard moved from CFO to lead the online unit last month following Kindred CEO Nils Andén‘s departure.
FDJ still expects full-year GGR to be up in 2026, but forecasts a slight decline in profits. The recurring EBITDA margin is projected at 23–24 per cent, below the earlier target of 24.5 per cent.
CEO Stéphane Pallez added: “In an environment still affected by the impact of tax increases and tighter regulations on gaming, the group is stepping up its efforts in operational efficiency, synergies and financial discipline, with the aim of returning to sustainable, value-creating growth from the second half of the year onwards.”
