FDJ United has revised its guidance for 2026 for the second time in less than three months, following a reported 5.6% decline in revenue, which totaled €2.58 billion for the nine months ending in September.
The company's gross gaming revenue (GGR) dropped by 2.8% to €6.26 billion. The third quarter exhibited even greater weakness, with revenue plummeting 8.1% to €794 million and GGR decreasing 6.1% to €1.95 billion.
The decline in revenue was largely attributed to a lack of substantial jackpots in comparison to 2025, especially within the EuroMillions game. Retail sports bettors experienced unusually high winnings in the third quarter. Additionally, challenging economic conditions in France contributed to fewer customers visiting FDJ United's retail locations. The rise in gaming taxes cost the company an estimated €62 million and was responsible for more than two percentage points of the revenue decrease.
Stéphane Pallez, chairwoman and CEO, acknowledged that the company’s performance mirrors challenges typical in the gaming sector, citing less traffic at retail outlets amidst a tough economic backdrop and the rising tax burdens. Despite these hurdles, Pallez emphasized FDJ United's commitment to navigating these challenges, underscoring ongoing efforts to implement strategies aimed at regaining a sustainable growth trajectory.
Future growth, according to Pallez, will hinge on innovation and enhancing the appeal of the company's game offerings. Plans for revitalization include reintroducing popular games such as Loto and EuroMillions, which FDJ United manages in France, as well as revitalizing its online ventures in the UK's and the Netherlands's markets.
In regard to its expectations, FDJ United now anticipates a slight decline in GGR for 2026 and a mid-single-digit decrease in revenue, incorporating over €70 million in projected additional gaming taxes. Previously, during its first-half results announcement in July, the company had forecasted stable GGR with just a low single-digit revenue decline.
It projects that stringent cost controls will maintain its recurring EBITDA margin at roughly 23%. The company also reiterated its goal to increase dividends annually, maintaining a payout ratio of at least 75% of adjusted net profit.
Examining specific segments, the French lottery and retail sports betting unit reported a GGR drop of 3.5%, totaling €4.98 billion, and revenue decreased by 4.8% to €1.79 billion after accounting for €28 million in new taxes. Revenue from draw games saw a notable 12.2% decline, settling at €563 million. This year, there have been just 12 EuroMillions jackpots exceeding €130 million, in stark contrast to 27 from the prior year. Additionally, only one jackpot surpassed €200 million, compared to 12 during the same period in 2025. FDJ United noted that player engagement typically aligns with jackpot sizes, making the shortfall impact substantial. This trend also reflected averages across all ten European lotteries that participate in EuroMillions.
Meanwhile, FDJ United's instant games did experience an uptick, with GGR growing by 1.9% and revenue increasing by 0.3% to €935 million. Conversely, the retail sports betting segment saw a revenue decline of 4.5%, amounting to €297 million, as the proportion of stakes paid back to players surged by over 400 basis points, approaching 80%.
Within its online betting and gaming segment, GGR was nearly stagnant, dipping by 0.8% to €1.01 billion, while revenue fell 8.2% to €619 million, reflecting €34 million in additional taxes. Excluding the dampening effects from the Netherlands and the UK, the GGR in these markets rose by 5.7% and revenue by 0.8%, with France and Scandinavia continuing to perform positively. In contrast, GGR in the Netherlands declined by 8.6%, and the UK faced a more drastic drop of 24.4%. FDJ United plans to implement actions aimed at gradually enhancing performance in these territories.
A new management team is now tasked with developing a strategy for growth and cost reduction within the online unit. The company is accelerating the deployment of a unified proprietary sports betting platform, with plans to have it operational in most regions by late 2027, including a reorganization of its European development teams.
In assessing its operation, FDJ United is also evaluating the markets served by its online division and its non-essential assets, particularly concerning the Payment and Services unit. Results of these assessments are set to be announced by the beginning of 2027. For the lottery segment, the company is planning additional draw game events in the fourth quarter and intends to reintroduce Loto and EuroMillions in 2027, along with launching a new €10 instant game.
FDJ United will reveal its full-year results on 18 February 2027.
