FDJ United (FDJU) Q4 2024 earnings summary

Executive summary

• 2024 marked a transformative year with the acquisition of Kindred, forming FDJ United, a diversified, international, and digital-focused group operating in 13 regulated European markets.

• Achieved strong financial performance in 2024, with revenue up 17% to €3,065m and recurring EBITDA up 21% to €792m; pro forma revenue €3,788m, pro forma EBITDA €964m.

• Integration of Kindred is progressing, with identified synergies and cost optimizations exceeding €50 million over two years.

• Maintained top ESG ratings and continued investments in responsible gaming and societal impact.

• European Commission concluded no state aid in exclusive rights payment, with a €97 million additional payment recognized.

Financial highlights

• Reported 2024 turnover reached €3.065 billion, up 17% year-over-year; pro forma revenue €3.788 billion.

• Recurring EBITDA was €792 million, up 21%, with a margin of 25.8%; pro forma EBITDA €964 million, margin 25.5%.

• Adjusted net income grew 13% to €490 million; proposed dividend of €2.05 per share, a 15% increase, with a 77% payout ratio.

• Free cash flow increased 15% to €675 million, with an 85% EBITDA-to-cash conversion rate; pro forma free cash flow €847 million.

• Net financial debt at year-end was €1.8 billion, leverage ratio 1.9x recurring EBITDA.

Outlook and guidance

• 2025 revenue targeted at around €3.8 billion, stable versus 2024 pro forma; recurring EBITDA margin expected above 24%.

• French lottery and retail sports betting expected to see low single-digit growth; online betting and gaming BU to decline slightly due to tax and regulatory impacts.

• Tax increases in France (from July 2025, ~€45m) and Netherlands (from January, >€10m), plus a €25m exceptional French tax, to impact 2025 results.

• Mitigation measures to offset tax/regulatory impacts: €20 million in 2025, ramping up to €100 million by 2027.

• Midterm guidance maintained: cash flow conversion >80%, CapEx 4-5% of revenue, leverage under 2%.