FDJ United has reported a downturn in both revenue and gross gaming revenue (GGR) for the first half of the year, primarily due to increased taxes and lackluster lottery performance. On Wednesday, FDJ disclosed that its H1 revenue fell by 4.5% to €1.78 billion, while GGR decreased by 1.3% to €4.31 billion.
Stéphane Pallez, CEO and chairwoman of FDJ, identified tax hikes in key markets including France, Romania, the UK, and the Netherlands as significant contributors to the financial decline, estimating a negative impact of about €52 million in gaming taxes.
The lottery sector's performance added to the challenges, showing a GGR decline of 2.1% in H1, resulting in €2.98 billion, while revenue dropped by 4% to €1.02 billion. According to FDJ’s earnings release, this underperformance was attributed to a significantly lower number of and amounts for major Euromillions jackpots compared to 2025 and diminished traffic at retail points of sale due to exceptional heatwaves during the second quarter.
In retail sports betting, GGR fell 1.1% to €450 million, with revenue declining by 2.9% to €218 million over the first half of 2026. Despite these setbacks, Pallez remained optimistic, stating, "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 in order to return to a path of sustainable, profitable and value-creating growth."
The online betting and gaming unit, however, performed in line with FDJ's expectations. H1 GGR for this segment held steady at €702 million, even though revenue decreased by 7.4% to €431 million. France and Scandinavia were highlighted as leading regions for the online unit. Excluding the Netherlands and the UK, GGR increased by 6.6%, and revenue saw a slight uptick of 0.6%. Notably, FDJ reported improvements in its online business in the Netherlands, despite earlier challenges, as the Unibet brand experienced a 4.1% GGR drop in Q2, a significant improvement from its 15% decline in Q1.
Conversely, the outlook for the UK market remains challenging. In April, after releasing Q1 results, Pascal Chaffard, head of gaming and betting, emphasized that FDJ would not withdraw its online betting business from the UK, stating, "For me, there is absolutely no question of getting out of the UK. The top priority is to fix this problem … some quarters [more] than years to get there, frankly." The company has initiated plans for “targeted task forces” aimed at improving performance in the UK and Netherlands.
FDJ has also reviewed its Kindred business’s market portfolio, prompting questions about potential shifts in its UK strategy, despite Chaffard’s earlier assurances about remaining in the market. When asked about this review during the post-results call, Pallez clarified that it focuses on investing resources where profitable growth is expected, emphasizing, "There is not any potential decision on exit."
As a result of its H1 performance, FDJ has adjusted its full-year guidance. They now expect slight increases in GGR with a small decline in revenue for FY2026, projecting annual revenue growth in its French lottery and retail sports betting segments. The online betting and gaming unit is expected to improve compared to Q1, regaining GGR growth in H2. However, FDJ now anticipates stable GGRs across both its lottery and retail sports betting units as well as the online segment, with revenue declines forecasted in the low single digits.
FDJ reported an adjusted net profit of €180 million in H1 and expressed intentions to optimize resource allocation moving forward.
