FDJ United has revised its 2026 projections downward for the second time in just three months, citing a 5.6% drop in revenue, which reached €2.58 billion in the nine months ending September. The gross gaming revenue (GGR) also saw a decline of 2.8%, totaling €6.26 billion. The third quarter faced particular challenges, with revenue plummeting 8.1% to €794 million and GGR diminishing by 6.1% to €1.95 billion.
The company indicated that a lack of significant jackpots compared to 2025 impacted performance, especially regarding EuroMillions. Notably, sports bettors experienced unusually high winnings during Q3, particularly at retail outlets. Economic conditions in France deterred consumer visits to their points of sale. Additionally, an increase in gaming taxes imposed a burden of €62 million on the group, contributing to over two percentage points of the overall revenue decline.
CEO Stéphane Pallez commented that the results underscore various factors intrinsic to the gaming sector, including reduced foot traffic in a challenging economic landscape and rising tax liabilities. Despite these hurdles, Pallez affirmed the company’s commitment to navigating these conditions, stating that FDJ United is "resolutely pursuing the implementation of its action and performance plans to swiftly regain a sustainable growth momentum."
Looking ahead, Pallez noted that innovation is essential for returning to growth, emphasizing efforts to enhance the appeal of the group’s games. Initiatives include revamping Loto and EuroMillions and revitalizing their online presence in the UK and the Netherlands.
FDJ United's latest outlook predicts a low-single-digit drop in GGR for 2026 and a mid-single-digit decrease in revenue, which now factors in over €70 million in increased gaming taxes. Previously, the company had anticipated stable GGR and a low-single-digit revenue decline.
Cost management initiatives aim to maintain a recurring EBITDA margin close to 23%. The company reiterated its goal of increasing the dividend annually, committing to a payout ratio of at least 75% of adjusted net profits.
In the French lottery and retail sports betting segment, GGR decreased by 3.5% to €4.98 billion, with revenue contracting by 4.8% to €1.79 billion, following an additional €28 million in taxes. Revenue from draw games fell 12.2% to €563 million. During this period, only 12 EuroMillions jackpots exceeded €130 million, a stark contrast to 27 the previous year, with merely one jackpot surpassing €200 million compared to 12 in 2025. The company noted that player activity is highly sensitive to jackpot size, resulting in significant declines. This trend aligns with the broader average observed across all ten European lotteries participating in EuroMillions.
Instant games, however, showed resilience, with GGR increasing by 1.9% and revenue ticking up 0.3% to €935 million. Revenue from retail sports betting dropped 4.5% to €297 million, and the return-to-player share surged by more than 400 basis points to nearly 80%.
The online betting and gaming segment experienced a slight decline, with GGR down 0.8% to €1.01 billion and revenue down 8.2% to €619 million, factoring in €34 million in additional taxes. Excluding performance from the Netherlands and the UK, GGR rose by 5.7% and revenue improved by 0.8%, primarily thanks to steady performances in France and Scandinavia, whereas GGR in the Netherlands dropped by 8.6% and by 24.4% in the UK. FDJ United believes its strategies in both markets will eventually restore performance.
A new management team has been tasked with enhancing growth and reducing costs for the online unit. FDJ United intends to accelerate the rollout of a single proprietary sports betting platform, which it anticipates will be operational in most markets by the end of 2027, while reorganizing its development teams across Europe.
By early 2027, FDJ United will conduct a review of the markets in which its online segment operates, alongside non-core assets, particularly within its Payment and Services division, with findings expected to be disclosed by then.
In the lottery segment, the company plans to introduce additional draw game events in Q4 and will revamp both Loto and EuroMillions in 2027, alongside launching a new €10 instant game. FDJ United's full-year results will be published on 18 February 2027.
