FDJ United has revised its 2026 outlook downward for the second time within three months, marking a 5.6% decrease in revenue to €2.58 billion for the nine months ending September 30. The company's gross gaming revenue (GGR) decreased by 2.8% to €6.26 billion. The third quarter showed a more significant decline, with revenue falling 8.1% to €794 million and GGR down 6.1% to €1.95 billion.
According to the group, the drop was attributed to a noticeable lack of large jackpots compared to 2025, particularly impacting EuroMillions, alongside unusually high winnings for sports bettors in retail. Economic hardship in France has resulted in fewer customers frequenting its points of sale, while increased gaming taxes resulted in a cost of €62 million, significantly contributing to the revenue decline.
Stéphane Pallez, chairwoman and CEO of FDJ United, indicated that recent performance reflects the typical challenges faced by the gaming sector, alongside decreased traffic at retail locations and rising taxes. Despite these setbacks, Pallez remains optimistic, asserting that FDJ United is committed to implementing its action and performance plans to restore a pathway to sustainable growth.
She emphasized that future growth will hinge on innovation and enhancing the appeal of the group’s games. Plans are underway to relaunch Loto as well as EuroMillions, the pan-European lottery operated in France, and to revitalize its online business within the UK and the Netherlands.
In its latest forecast, FDJ United expects a low single-digit decline in GGR for 2026 and a mid-single-digit drop in revenue, which factors in over €70 million in new gaming tax expenses. In July, the company had anticipated stable GGR alongside a low single-digit dip in revenue.
Cost management is projected to maintain a recurring EBITDA margin around 23%. The group reaffirmed its annual dividend increase target, aiming for a payout ratio of at least 75% of adjusted net profit.
Within the French lottery and retail sports betting segment, GGR dipped by 3.5% to €4.98 billion, with revenue declining by 4.8% to €1.79 billion due to an additional €28 million in taxes.
Draw game revenue saw a decline of 12.2%, totaling €563 million. Notably, there were only 12 EuroMillions jackpots exceeding €130 million by the end of September, a stark contrast to the 27 recorded the previous year. In the same timeframe, only one jackpot surpassed €200 million compared to 12 in 2025. FDJ United noted that player stakes are closely tied to jackpot size, hence this shortfall had a significant impact on participation, mirroring trends across all ten European lotteries involved in EuroMillions.
Conversely, the instant games sector demonstrated growth, with GGR increasing by 1.9% and revenue inching up 0.3% to €935 million.
In retail sports betting, revenue diminished by 4.5% to €297 million, with the proportion of stakes returned to players climbing over 400 basis points to nearly 80%.
In the online betting and gaming segment, GGR remained nearly unchanged, dropping only 0.8% to €1.01 billion. Revenue also fell by 8.2% to €619 million after an additional €34 million in taxes was incurred.
Excluding markets in the Netherlands and the UK, GGR rose 5.7%, and revenue saw a slight increase of 0.8%, with France and Scandinavia showing positive performance. However, GGR fell 8.6% in the Netherlands and 24.4% in the UK, prompting the company to implement action plans aimed at gradually improving these results.
A new management team is tasked with developing a growth strategy while reducing costs. Concurrently, FDJ United is expediting the launch of a proprietary sports betting platform, aiming for substantial implementation across most markets by the end of 2027, which includes reorganizing its development teams in Europe.
By early 2027, FDJ United will review the markets in which its online unit operates and assess its non-core assets, particularly in the Payment and Services division, providing updates on its findings by early 2027 at the latest.
Additionally, the group plans to introduce more draw game events in Q4 and to relaunch both Loto and EuroMillions in 2027, along with a new €10 instant game.
The company is scheduled to reveal its full-year results on February 18, 2027.
