FDJ United (FDJU) CMD 2025 summary

Strategic ambitions and transformation

• Aims to assert European leadership as a sustainable lottery, gaming, and betting operator, leveraging the Play Forward 2028 plan and Kindred integration for growth, recurring EBITDA margin expansion, and high cash flow generation, with 2025 as a pivotal year.

• Transformation from a national operator to a diversified, international group with a strong online presence, now covering 10 European markets and holding leading positions in all.

• Four business units drive growth: French lottery/retail sports betting (LSF), Online Betting & Gaming (OBG), International Lottery (IL), and Payment & Services.

• Unique assets include proprietary platforms, iconic brands, and a large retail network, with one-third of revenue from online activities.

• Committed to responsible and sustainable growth, with ESG leadership and a minimum 75% dividend payout ratio.

Financial guidance and performance

• Targets 5% organic revenue CAGR and recurring EBITDA margin above 26% by 2028, with EBITDA to free cash flow conversion above 80%.

• 2025 guidance reiterates stable revenue and EBITDA margin above 24%, mitigating tax and regulatory impacts in key markets.

• EUR 120 million in annual cost efficiencies expected by 2028, with over 50% from OBG and 40% from LSF, supporting margin expansion.

• CapEx to remain moderate at 4-5% of revenue, mainly IT-focused, with structurally negative working capital supporting cash generation.

• Dividend policy ensures year-on-year increases, with EUR 1.1 billion paid from 2020-2024, and flexibility for further M&A without exceeding 2x net debt/EBITDA long-term.

Business unit strategies and ambitions

• French lottery/retail sports betting (LSF) aims for low to mid-single-digit revenue CAGR, iLottery share to reach 20% by 2028, and EBITDA margin above 35%.

• Focus on digital penetration, retail network transformation, omnichannel strategy, and recruiting over 1 million new active players by 2028.

• OBG targets high single-digit revenue CAGR and EBITDA margin above 30% by 2028, leveraging proprietary platforms, automation, and aiming for top 3 market positions in 7 of 8 main European markets.

• International lottery to grow via organic and M&A opportunities, focusing on multi-jurisdictional leadership, digital innovation, and leveraging group assets.

• Growth driven by product innovation, operational leverage, cross-market synergies, and expansion of Premier Lotteries Ireland through digital migration and retail investments.