FDJ UNITED: Revenue Declines by 3%, Tax Pressure Obscures Underlying Dynamics
In the first quarter of 2026, FDJ UNITED reported a revenue of 895 million euros, a 3% decrease year-over-year. This contraction is largely due to a fiscal impact of 24 million euros from increased taxes on games and betting, while the gross gaming revenue (GGR) saw a 1% increase to 2.175 billion euros. Investors are now faced with the question: beyond the tax noise, is the European operator managing to restore its profitability?
Stable Overall Dynamics Masked by Increased Tax Burden
The group's GGR increased by 1% to 2.175 billion euros in the first quarter, indicating a stable overall dynamic. However, this positive aspect was largely neutralized by an increased tax burden. Tax increases on games and betting alone reduced the revenue by 24 million euros, bringing it down to 895 million euros (-3% year-over-year). In France, the group's historical market, the GGR for lotteries and retail sports betting remained stable at 1.740 billion euros, with a revenue of 627 million euros (-2%). Instant games showed notable resilience, with a GGR increase of 3.4%, while draw-based games suffered from the absence of long cycles (only three in Q1 2026 compared to sixteen a year earlier). The online division recorded a GGR of 342 million euros (-1%) and a revenue of 213 million euros (-8%), impacted by tax increases in France since July 2025, in the Netherlands since January 2026, and in Romania since August 2025, totaling 9 million euros. This decline, however, masks varied geographic performances: excluding the United Kingdom and the Netherlands, the GGR increased by 6.3%, thanks notably to strong performance in France and Sweden.
Online Betting and Gaming Division Under Continued Pressure
Beyond the mere fiscal impact, the online betting and gaming division remains under pressure. The United Kingdom saw a 24.1% decline in revenue, while the Netherlands, despite improvements, recorded a 19.9% decrease in revenue and a 14.5% decrease in GGR. In this context, FDJ UNITED has implemented significant organizational changes. Unibet has become the sole brand for online sports betting and poker in France in the first quarter, following a successful migration completed on schedule. The number of active players increased by 3% during the quarter. The new leadership team, led by Pascal Chaffard as Chief Online Betting and Gaming Officer, is committed to implementing action plans aimed at gradually restoring performance, particularly in the United Kingdom and the Netherlands. Dan Lévy has been appointed Chief Financial Officer effective May 18, 2026.
Modest GGR Increase and Revenue Decline Expected for 2026
FDJ UNITED anticipates a slight increase in GGR and a slight decline in revenue for 2026, with an estimated impact of nearly 90 million euros due to scheduled tax increases. The recurring EBITDA margin is expected to be between 23% and 24%. The group forecasts annual revenue growth for the French lotteries and retail betting division, despite the temporary impacts observed in the first quarter, as well as improved performance in the online division compared to Q1, with a return to GGR growth in the second half of 2026, driven by the implementation of ongoing action plans. It is particularly in this latter half of the year that the group bases its rebound expectations. FDJ UNITED will also propose a dividend of 2.10 euros per share for the 2025 fiscal year to shareholders at its general meeting on April 23, 2026. The major challenge for investors remains the execution of these online recovery plans and the group's ability to generate organic growth beyond the fiscal adjustments currently obscuring the true business dynamics.
