FDJ United (FDJU) H1 2025 earnings summary

Executive summary

• Launched new strategic plan "Play Forward 2028" targeting European leadership, 5% average annual organic revenue growth, and recurring EBITDA margin above 26% by 2028, with a focus on sustainability and increased societal contributions.

• Integration of Kindred progressing, with key migrations, customer base mergers, and rebranding to FDJ UNITED reflecting European expansion.

• Group reorganized into four business units: French Lottery & Retail Sports Betting, Online Betting & Gaming, International Lottery, and Payment & Services, under a new holding company structure.

• Enhanced ESG commitments, including responsible gaming, carbon reduction, and €5m investment in nature-based solutions.

• Regulatory changes in France and the Netherlands increased tax and compliance requirements, impacting profitability.

Financial highlights

• H1 2025 revenue reached €1,867m, up 31% year-over-year reported, but down 1.7% restated for Kindred acquisition; recurring EBITDA €441m (23.6% margin, 24.4% excluding €14m share plan cost).

• Adjusted net income €222m, down 5% year-on-year; consolidated net income €136m, down 36.2% due to acquisition financing and one-off tax.

• Net financial debt at €1,964m as of June 2025, up from €1,818m at end-2024, mainly due to dividend payments and Kindred acquisition financing.

• Gross Gaming Revenue (GGR) €4,370m (+1.6%); net gaming revenue €1,775m (-1.3%).

• Q2 revenue €942m, up 2% sequentially from Q1.

Outlook and guidance

• 2025 guidance reiterated: stable revenue vs. 2024 pro forma, recurring EBITDA margin above 24%, and net financial debt reduction of at least €150m.

• Medium-term plan (2025-2028): ~5% average annual organic revenue growth, recurring EBITDA margin above 26% by 2028, and annual dividend increases with payout ratio ≥75% of adjusted net income.

• H2 2025 expected to benefit from new game launches, normalization of sports results, and improved regulatory environment.

• Lottery growth in H2 expected between 1%-2% due to higher tax rates.

• OBG revenue to return to growth in Q4 as regulatory headwinds lap and new initiatives launch.