FDJ United Achieves Double-Digit Revenue Growth Amid Tax Challenges

FDJ United, formerly known as La Française des Jeux (FDJ), recorded significant financial growth in 2024. However, the company anticipates a substantial tax burden in the coming years due to rising levies in France.

In its full-year financial report released on March 6, FDJ announced a revenue increase of 16.9% year-on-year, reaching €3.07 billion ($3.3 billion/£2.56 billion). The company also reported a 20.6% rise in EBITDA, totaling €792 million.

Tax Increases Expected to Impact Future Profits

The 2024 fiscal year was the first to include the performance of Kindred, which FDJ acquired in October for €2.45 billion. However, Kindred’s financial results were not presented as a separate unit within the report.

FDJ highlighted the impact of increasing taxes, noting that it paid an additional €45 million in tax revenue for 2024. The tax burden is expected to rise, reaching €100 million by 2027. More than half of this sum will stem from FDJ's online gaming and sports betting operations, now including Kindred.

This year, FDJ anticipates paying nearly €45 million in taxes in France, with an additional €10 million contribution to the Netherlands. These increases are expected to influence overall revenue, which FDJ forecasts at €3.8 billion in 2025, maintaining a recurring EBITDA margin above 24%.

Changes in France’s gambling tax structure will take effect in July, raising social security contributions for operators. Under the country's taxation model, rates vary by vertical and are based on gross gaming revenue (GGR), with additional social security charges across all segments.

FDJ’s French lottery and retail sports betting segment generated €2.5 billion in revenue, marking a 5.8% increase. This figure includes €2.05 billion from lottery activities and €453 million from retail sports betting. Major sporting events, such as the UEFA Euros, contributed to this growth.

For 2025, FDJ projects revenue of €3.6 billion, though the company acknowledges that stricter regulations and tax increases in the Netherlands and the UK will present challenges.

Online betting and gaming revenue totaled €1.03 billion, with casino gaming comprising 51% of that figure and sports betting accounting for 41%.

Additionally, international lottery revenue amounted to €190.5 million, while Nivio, FDJ’s payment services business, contributed €64.4 million. Nivio provides an app enabling users to pay for taxes, utility bills, tolls, and other services.

FDJ also benefitted from a cost-reduction initiative launched in late 2023, which included withdrawing from the North American market. The company’s recurring EBITDA margin for this segment reached 28.5%, with EBITDA standing at €293.2 million.

Rebranding and Management Changes

Alongside its financial results, FDJ announced a corporate rebrand to FDJ United, reflecting its international expansion.

A company statement explained: “This new name reflects the group’s European scale while paying tribute to its roots, its history, and what makes it unique. The new FDJ United name reaffirms the group’s historic name, FDJ, and combines it with United, reflecting its international development.”

The company also introduced a new brand slogan: ‘Playful. Play fair. Play forward.’ While FDJ United will serve as the corporate brand across all markets, the FDJ name will continue to be used in France.

To align with its evolving structure, FDJ reorganized its executive leadership. Kindred’s CEO, Nils Andén, was appointed Chief Online Betting and Gaming Officer. Patrick Buffard, previously General Manager of the French Lottery, was named Chief French Lottery and Retail Sports Betting Officer. FDJ CEO Stéphane Pallez, Deputy CEO Charles Lantieri, and CFO Pascal Chaffard retained their current roles.

The company has also restructured its business units. The French lottery and retail sports betting division will oversee lottery games and in-person sports betting, while the online gaming division will manage online sports and horse race betting, poker, and digital casino offerings.

Market Reactions and Outlook

Despite its strong financial results, FDJ’s stock saw a 10.55% decline in pre-market trading, dropping to €33.74 per share. Analysts attribute this drop to concerns over increasing tax obligations and broader market uncertainties.

InvestingPro data highlights FDJ’s strong profitability, with a gross margin of 48.3%. The company has also increased its dividend for five consecutive years, with a proposed 2024 dividend of €2.05 per share, a 15% increase year-on-year.

FDJ remains optimistic about 2025, targeting revenue of approximately €3.8 billion. However, the company acknowledges the financial strain from upcoming tax hikes, which are expected to cost €45 million in France and over €10 million in the Netherlands. To mitigate these effects, FDJ plans to implement cost-saving initiatives, with expected benefits of at least €100 million by 2027.

Source:

‘’Very strong 2024 results – 2025 outlook affected by taxes on betting and gaming’’, fdjunited.com, March 06, 2025.