FDJ United (FDJU) CMD 2025 summary

Strategic ambitions, transformation, and business model

• Aims for European leadership as a sustainable lottery, gaming, and betting operator, leveraging the Play Forward 2028 plan and Kindred integration to accelerate digital and international expansion, with a unified group culture across 10 European markets.

• Business model transformed from a national operator to a diversified, international group with four business units: French Lottery & Retail Sports Betting (LSF), Online Betting & Gaming (OBG), International Lottery (IL), and Payment & Services.

• Portfolio now features 30% of revenue from international activity, one-third from online, and one-third from competitive markets, with unique assets including proprietary platforms, iconic brands, and a large retail network.

• Kindred acquisition enhances digital capabilities, with over EUR 60 million in synergies targeted by 2028 and full benefits expected by end 2026.

• Data and AI are central, with a new Chief Data and AI Officer, over 300 data experts, and a roadmap to elevate customer experience and operational efficiency.

Financial guidance and performance targets

• Targets 5% organic revenue CAGR (2025–2028), recurring EBITDA margin above 26% by 2028, and EBITDA to free cash flow conversion above 80%.

• 2025 guidance: stable revenue vs. 2024 pro forma and recurring EBITDA margin above 24%.

• CapEx to remain moderate at 4–5% of revenue or €650–700m (2025–2028), with net debt/EBITDA capped at 2x and investment-grade rating maintained.

• Dividend policy: annual increases with a minimum payout ratio of 75% of adjusted net income.

• EUR 120 million in annual cost efficiencies targeted by 2028, with over 50% from OBG, 40% from LSF, and the rest from central costs.

Business unit strategies and growth drivers

• LSF targets low to mid-single-digit revenue CAGR, iLottery share to reach 20% by 2028, and EBITDA margin above 35%, aiming to add over 1 million new players, mainly via retail and digital.

• LSF will transform its PoS network, prioritize high-potential locations, and double banner share, with an omnichannel strategy to identify over 25% of players.

• OBG targets high single-digit revenue CAGR and EBITDA margin above 30% by 2028, leveraging proprietary platforms, automation, and a focus on sustainable, loyal customers.

• OBG will migrate all brands to a single platform by 2026, enabling rapid market entry and further M&A, with diversification across markets and brands.

• International lottery will build on the PLI acquisition, targeting mid to high single-digit annual growth, digital innovation, and multi-jurisdictional expansion, focusing on scalable models and iLottery.