FDJ United has reported a decline in both revenue and gross gaming revenue (GGR) for the first half of the year, primarily due to increased taxes and poor performance in its lottery sector.
On Wednesday, FDJ revealed its H1 results, indicating a 4.5% decrease in revenue to €1.78 billion, while GGR fell 1.3% to €4.31 billion.
Stéphane Pallez, the CEO and chairwoman of FDJ, explained that tax hikes in essential markets such as France, Romania, the UK, and the Netherlands contributed significantly to these declines. The financial impact from gaming tax increases approximated €52 million.
In particular, FDJ's lottery division struggled, experiencing a 2.1% GGR decline to €2.98 billion and a revenue fall of 4% to €1.02 billion. The earnings release attributed this underperformance to a notably smaller number and lower amounts of major Euromillions jackpots compared to 2025, coupled with reduced foot traffic at sale points, exacerbated by exceptional heatwaves in the second quarter.
FDJ's retail sports betting also underperformed during H1, reporting a GGR decrease of 1.1% to €450 million and a revenue drop of 2.9% to €218 million.
Despite these challenges, 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 to return to sustainable, profitable, and value-creating growth.”
In terms of online performance, FDJ noted that its online betting and gaming segment met expectations. The H1 GGR for this unit remained stable at €702 million, though revenue decreased by 7.4% to €431 million. France and Scandinavia drove the unit’s performance, and when excluding the Netherlands and the UK, GGR increased by 6.6%, with revenue slightly rising by 0.6%. The online business in the Netherlands showed signs of improvement, despite a 4.1% GGR decline for the Unibet brand in Q2, which was significantly better than the 15% drop in Q1.
However, the outlook for the UK remains bleak, with FDJ acknowledging that “the situation remains difficult.” Earlier this year, after Q1 results, gaming and betting chief Pascal Chaffard affirmed that FDJ had no plans to exit the UK market, emphasizing, “For me, there is absolutely no question of getting out of the UK. The top priority is to fix this problem.”
Following H1 results, FDJ indicated the potential for reviewing its Kindred business’ market portfolio, raising questions about possible changes in strategy in the UK. In response to inquiries about the review, Pallez said, “It’s really aimed at investing our money where we think we can get a good return in terms of profitable growth. There is not any potential decision on exit.”
Reflecting on the company’s full-year guidance, FDJ modified its expectations. Initially, the company forecasted slight GGR growth and a small revenue decline for FY2026. Now, it anticipates stable GGR for the lotteries and retail sports betting unit, as well as the online segment, with revenue declines expected to be in the low single digits. FDJ reported an adjusted net profit of €180 million for H1, committing to optimizing resource allocation moving forward.
