FDJ UNITED Reports Growth in Gross Gaming Revenue but Faces Setbacks from Massive Tax Increases
FDJ UNITED announced on Thursday its 2025 results, showing a 1% increase in gross gaming revenue to EUR 8,706 million, but a 3% decline in revenue to EUR 3,678 million. This revenue contraction reflects the impact of over EUR 50 million in gaming tax increases in France, the Netherlands, and Romania.
Financial Performance and Tax Impacts
In 2025, FDJ UNITED's gross gaming revenue increased by 0.8% to EUR 8,705.6 million. However, public levies rose by 3.2% to reach EUR 5,212 million, now representing 59.9% of the gross revenue compared to 58.5% in 2024. This increase in levies led to a 2.7% decrease in net gaming revenue to EUR 3,493.6 million. The group's revenue, including other activities, fell by 2.9% to EUR 3,677.5 million, affected by the divestiture or discontinuation of certain non-strategic activities. The current EBITDA reached EUR 902 million with a stable margin of 24.5%, in line with set targets. Tax increases exceeded EUR 50 million in 2025, particularly impacting gambling in France from July 1, in the Netherlands from January 1, and in Romania from August 1. France notably raised public levies on Loto and Euromillions games from 68% to 69%, and on online sports betting from 54.9% to 59.3% of gross revenue. A 15% tax on advertising and promotional expenses was also introduced, impacting the group by more than EUR 5 million in the partial year.
Record Cash Flow and Financial Investments
The free cash flow reached a record level of EUR 782 million, representing an EBITDA to cash conversion rate of 87%, an improvement from 85% in 2024. This performance is explained by a positive change in working capital of EUR 52.6 million and investments of EUR 172.3 million (excluding an additional compensation payment of EUR 97 million). Intangible investments increased to EUR 117.1 million for IT developments and gaming terminals. The net financial debt decreased by nearly EUR 100 million to EUR 1,721 million, stable at a leverage of 1.9 times the current EBITDA. The adjusted net income amounted to EUR 487 million, slightly down by 0.7% compared to 2024. The board of directors proposes to the general meeting on April 23 a dividend increase to EUR 2.10 per share from EUR 2.05 in 2024, representing a payout ratio of 80% of the adjusted net income.
Strategic Acquisitions and Performance Plan
FDJ UNITED successfully integrated the acquisition of Kindred and is accelerating the implementation of its multi-year performance plan. The cumulative target by the end of 2028 is raised to more than EUR 150 million from an initially planned EUR 120 million, with over EUR 50 million in savings achieved by 2025, a year ahead of schedule. For 2026, the group targets slight revenue growth with a stable current EBITDA margin of 24.5%, despite the expected impact of EUR 90 million in additional tax increases in the UK and the Netherlands. The group anticipates a reduction in its net financial debt by around EUR 100 million. From 2026 to 2028, with constant fiscal framework, FDJ UNITED projects a gradual acceleration of revenue growth, reaching about 5% in 2028, with a current EBITDA margin rate above 26%.
