FDJ United FY 2025: Net Income Falls 55.9% on Tax Hits

FDJ United’s net income fell 55.9% to €176 million in 2025 as tax increases across multiple European markets cut into earnings, with the company warning of a further €90 million tax hit in 2026.

Group GGR reached €8.7 billion for the year, up 1% on a restated basis. Revenue declined 3% to €3.7 billion. Recurring EBITDA came in at €902 million, representing a margin of 24.5%. Adjusted net income fell 0.7% to €487 million. The board proposed a dividend of €2.10 per share, up from €2.05 the year prior.

In 2025, FDJ United demonstrated the strength of its model and continued its transformation, in an environment affected by tax increases and tighter regulations on gaming. With a strengthened performance plan and a new organization of its online betting and gaming business unit, the Group will continue to improve its operational efficiency to return to its profitable and sustainable growth path by 2026.

That was Chairwoman and CEO Stéphane Pallez, presenting results that reflect the growing cost of doing business across regulated European markets.

Tax Burden Across Four Markets

FDJ United quantified the regulatory drag precisely. Tax increases reduced 2025 results by more than €50 million and are expected to cost nearly €90 million in 2026.

France introduced GGR tax hikes from 1 July 2025 across lottery, sports betting, and online gaming, alongside a 15% levy on advertising and promotional spending and an exceptional profit tax that cost €26.7 million in 2025. In the Netherlands, online gaming tax rose from 30.5% to 34.2% in January 2025 and increased again to 37.8% in January 2026. Romania raised its sports and horse betting levy from 21% to 30%. The UK, where FDJ United operates through its Kindred brands, plans to push online casino tax from 21% to 40% from April 2026.

The compounding effect of simultaneous tax escalations across the group’s key markets explains the disconnect between a relatively stable GGR line and a near-halved net income figure. This is a pattern playing out across European operators, as covered in our analysis of FDJ United’s share price reaction earlier this week.

Online Division Under Pressure

The online betting and gaming segment bore the brunt. GGR declined 8.1% and revenue fell 11.8% to €907.7 million. Recurring EBITDA for the division was €181.6 million, a margin of 20.0%.

UK GGR dropped 22.4% and Netherlands GGR fell 38.3%, even as active players grew by more than 10% across the online division. The divergence between user growth and revenue contraction reflects the tax and regulatory environment rather than underlying demand. FDJ United said it is reorganising the division and rolling out its proprietary KSP technology platform.

The French lottery and retail sports betting segment held up by comparison. GGR rose 2.8% to €6,950 million and revenue increased 1.4% to €2,537.9 million. Recurring EBITDA reached €913.3 million, with a 36.0% margin. Online lottery revenue climbed 8.1% to €316.2 million, with more than six million online lottery players at year-end.

International lottery revenue fell 10.7% to €169.9 million, though recurring EBITDA improved to €38.3 million from €24.9 million in 2024. Payment and services revenue decreased 3.9% to €61.9 million.

Kindred Integration Complete, Andén Departs

FDJ United confirmed the integration of Kindred was completed during 2025. The group raised its multi-year performance plan target to more than €150 million by 2028, up from €120 million previously.

Alongside the results, FDJ United announced that Nils Andén, former Kindred chief executive and current chief online betting and gaming officer, will leave the group to “pursue new projects.” CFO Pascal Chaffard has been named as Andén’s successor to lead the online business unit.

Andén oversaw Kindred’s transition under FDJ ownership and led the online division through one of its most challenging regulatory periods. His departure with the Kindred integration formally closed marks a clean break from the acquisition chapter.

2026 Outlook

FDJ United guided for slight revenue growth in 2026 and a stable recurring EBITDA margin of 24.5%, despite the anticipated €90 million tax impact. The group expects to reduce net financial debt by around €100 million.

Over the medium term, the company targets approximately 5% revenue growth by 2028 on a constant tax basis, a recurring EBITDA margin above 26%, EBITDA-to-cash conversion above 80%, capital expenditure of 4–5% of revenue, and a dividend payout ratio of at least 75%.

The stability of the lottery and retail segment provides a reliable earnings floor, but the online division’s path back to growth runs directly through the tax and regulatory environment in the UK, France, and the Netherlands. With the UK’s 40% online casino rate landing in April 2026, the next set of results will test whether the KSP platform rollout and divisional reorganisation can offset what is shaping up to be the heaviest single-year tax charge yet. The tax-versus-growth tension is not unique to FDJ, but few operators face it across as many markets simultaneously.

Source: FDJ United