FDJ United (FDJU) H2 2025 earnings summary

Executive summary

• Gross gaming revenue for 2025 reached €8.7 billion, with revenue at €3.7 billion and recurring EBITDA at €902 million (24.5% margin), supported by the completed Kindred integration and a raised 2028 cost savings target of over €150 million.

• Free cash flow hit a record €782 million (87% conversion rate), and net financial debt was reduced by nearly €100 million to €1.7 billion (1.9x EBITDA).

• The group expanded its retail network, advanced digital transformation, and now generates a third of revenue online, with over 6 million iLottery players.

• Major headwinds included significant tax increases in France, Netherlands, Romania, and the UK, impacting revenue and EBITDA by over €50 million in 2025 and with further increases expected in 2026.

• Dividend increased to €2.10 per share (80% payout of adjusted net income), subject to AGM approval.

Financial highlights

• Recurring EBITDA margin was 24.5% (down 90–100bps year-over-year), with free cash flow conversion at 87%.

• Net income was €176 million (down from €399 million in 2024), with adjusted net income stable at €487 million.

• Net financial debt/EBITDA was 1.9x, with a further €100 million reduction targeted in 2026.

• Public levies on games rose to 59.9% of GGR (+140bps), and cost of sales and marketing costs declined.

• Capital expenditure increased to €272 million, mainly for IT and retail infrastructure.

Outlook and guidance

• 2026 guidance expects slight revenue growth and a stable recurring EBITDA margin of 24.5%, with nearly €90 million in additional gaming taxes anticipated.

• Medium-term ambition: 5% annual revenue growth by 2028, recurring EBITDA margin above 26%, and CapEx at 4–5% of revenue.

• Dividend policy aims for annual increases with a payout ratio of at least 75% of adjusted net income.