FDJ United has reported a decline in both revenue and gross gaming revenue (GGR) for the first half of the year, primarily driven by increased tax pressures and a disappointing performance in its lottery segment.
On Wednesday, FDJ unveiled its H1 results, indicating a 4.5% decrease in revenue to €1.78 billion, alongside a 1.3% dip in GGR, which reached €4.31 billion.
Stéphane Pallez, the CEO and chairwoman of FDJ, highlighted that the company experienced significant financial impacts from increasing taxes in key markets such as France, Romania, the UK, and the Netherlands. She noted that gaming tax hikes contributed approximately €52 million to the revenue shortfall.
The lottery sector was particularly underwhelming, showing a 2.1% decline in GGR to €2.98 billion and a 4% drop in revenue to €1.02 billion. Pallez explained this downturn as a result of fewer and lower-value Euromillions jackpots compared to 2025, compounded by reduced foot traffic at retail locations during the second quarter due to extreme heatwaves.
Retail sports betting also faced challenges, with GGR sliding 1.1% to €450 million and revenue down 2.9% to €218 million during the first half of 2026.
Despite these issues, Pallez maintained a positive outlook, 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."
In contrast to the challenges faced in other areas, FDJ's online betting and gaming unit met expectations, yielding stable GGR at €702 million. However, revenue reached €431 million, a decline of 7.4%. Performance varied regionally, with France and Scandinavia showing stronger results, and GGR excluding the Netherlands and the UK up 6.6%, while revenue inched up by 0.6%. The online business in the Netherlands is on the mend, with Unibet showing a 4.1% GGR decline in Q2, a substantial improvement from the 15% drop in Q1.
Conversely, FDJ indicated that the situation in the UK remains challenging. After the release of its Q1 results in April, gaming and betting chief Pascal Chaffard reaffirmed the company's commitment to the UK market, stating, "For me, there is absolutely no question of getting out of the UK. The top priority is to fix this problem."
To enhance collaboration and performance, FDJ has embarked on developing "targeted task forces" aimed at the UK and Netherlands.
Following these half-year results, FDJ has adjusted its full-year guidance. Initially anticipating slight increases in GGR, the company has now adjusted expectations for stable GGR across its lottery and retail sports betting operations. Meanwhile, a low single-digit revenue decline is projected.
In its H1 report, FDJ recorded an adjusted net profit of €180 million and pledged to optimize resource allocation going forward, showing a focus on sustainable growth despite recent challenges.
