France’s FDJ United posts mixed Q1 results, impacted by regulation

FDJ United has announced its Q1 revenue results, significantly impacted by the changing regulatory framework in the United Kingdom and the Netherlands. 

The company has reported a mixed bag of results with total gaming revenue (GGR) of €925 million ($1 billion), up 30% year-on-year.

That was offset by a 10% drop in its Kindred business, down €231 ($262m) through the first quarter of the year, although active player numbers increased by 10%.

Excluding the UK and the Netherlands, online betting and gaming revenues were up by almost 8% on the previous year.

The operator of the French national lottery, formerly known as La Française des Jeux (FDJ), significantly extended its sports betting portfolio with the recent  €2.45b ($2.73) acquisition of Swedish-founded Kindred, the operator of the prominent Unibet sportsbook and 32Red online casino titles.

Now rebranded as FDJ United, following the takeover of Kindred (as well as Premier Lotteries Ireland and ZEturf in recent years), the company has a much wider scope within different international markets. 

On its earnings call on Tuesday (17 Apr), FDJ United CFO Pascal Chaffard said: “We were impacted by increased gaming taxation in the Netherlands, but more importantly, by stricter regulation implementation, both in the UK and the Netherlands.”

“In the Netherlands, the largest impact came from the introduction of a new monthly net deposit limit,” he added. 

Q1 saw a massive 41% decline in revenue in the Netherlands, after the changes, including the introduction of an almost 4% tax increase to 34.2% of GGR.

Total lottery and retail sports betting grew by 3.6% to €640 million in Q1, year-on-year. 

With FDJ’s lottery monopoly in France, total lottery revenues spiked 5%, up to €528m ($600m). 

For the upcoming year, FDJ United has pinpointed four key areas of priority: French lottery and retail sports betting, online betting and gaming, international lottery, and payments and services.

The company is also primed for the opening of the Finnish online gambling market in 2027.

“It’s a country where we are operating today, and we are waiting for the regulation to come. So for us, it’s an important one,” said Chaffard. 

The recent expansion of the company and the impact of the Q1 results were summarized by CEO Stephane Pallez, who insisted the relative progress and setbacks are in line with expectations:

“FDJ United’s performance in the first quarter is in line with the trajectory planned for 2025,” she said. 

“Against the backdrop of tougher regulation and taxation in some of its markets, it reflects good momentum in points of sale and an increase in the number of online active players in all its markets. Beyond this, the Group is fully committed to the transformation associated with the implementation of its international and digital strategy.”

Image credit: FDJ United

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