FDJ United: revenue rises 30% but weighed down by Kindred decline
The French gambling giant has published its first quarterly results since its rebranding.
France.- The newly rebranded FDJ United has published its first quarter results – the first financial report since its name change last month. It reported gross gaming revenue (GGR) of €925m, a rise of 30 per cent year-on-year. However, online gambling revenue from newly acquired Kindred declined by 10 per cent to €231m.
The drop in revenue from the online gambling business came despite a 10 per cent increase in the number of active players. FDJ ascribed the fall to the triple whammy of a rise in gambling tax in the Netherlands as well as new deposit limits in the Netherlands and new stake limits in Britain.
The Netherlands saw the steepest downturn, with revenue falling by 41 per cent. Online revenue excluding these two markets rose by close to 8 per cent year-on-year.
The trade body VNLOK has expressed concern about the impact of the Netherlands’ deposit limits after the Dutch gambling regulator’s spring report showed that channelisation and revenue to the licensed market fell after the introduction of the measures in October 2024. FDJ echoed those concerns on its earnings call.
FDJ United CFO Pascal Chaffard said: “We were impacted by increased gaming taxation in the Netherlands, but more importantly, by stricter regulation implementation, both in the UK and the Netherlands. In the Netherlands, the biggest impact came from the introduction of a new monthly net deposit limit.
“These measures significantly reduced the revenue of licensed operators, but they also led to a sharp drop in the channelisation rate, as the market share of unlicensed operators increased in 2024 and now exceeds 50 per cent”.
Hopes for igaming Dutch market recovery
FDJ United said it is still hopeful of a market recovery thanks to a 15 per cent increase in the number of active players in the first quarter. It said it intended to mitigate the impact of regulatory changes by streamlining its processes for those customers who want to request higher deposit limits. It also noted that two operators have left the market since the measures came into force, reducing the number of operators to 25.
Chaffard said he believed the number would continue to drop, benefiting FDJ as market leader. “We remain confident in our ability to continue acquiring players, expanding our active user base, and helping them navigate the regulatory restrictions,” he added.
FDJ’s lottery and retail haul
Beyond Kindred, FDJ’s lottery and retail revenue was up by 3.6 per cent at €640m. Lottery revenue from France rose by 5 per cent to €528m, with online lottery revenue up by 14 per cent at €79m. Retail sports betting revenue dipped by 1 per cent to €112m in spite of a 5 per cent rise in wagers due to unfavourable sporting outcomes.
FDJ also noted that it was looking forward to the expected passing of the Finnish Gambling Act and the opening of a competitive regulated market. Kindred is already active in Finland, and FDJ highlighted the importance of the market to the company. At the same time, Chaffard dismissed suggestions that the company could try to re-enter the US market. “We know it’s not possible to be profitable in this jurisdiction,” he said.
