FDJ United has vowed to turn its fortunes around in the UK and Netherlands after tax continued to hamper its performance in Q1.
In its Q1 2026 earnings, released on Tuesday, group GGR edged up 1% year-on-year to €2.175 billion, while revenue was down 3% to €895 million, hindered by a €24 million impact from gaming taxes.
FDJ’s online betting and gaming unit, made up of its Kindred operations, reported a GGR decrease of 1% to €342 million, while revenue fell 8% to €213 million.
But when excluding the UK and the Netherlands, which hiked their gambling tax rates in 2025 and 2026, FDJ’s Q1 GGR from its online betting and gaming unit rose 6%, while revenue was down just 1%.
UK revenue for the Kindred business was down 24.1%. In the Netherlands, meanwhile, revenue decreased 19.9%, although FDJ noted this was a “marked improvement” on the 42.1% decline experienced in its FY2025.
The operator has already taken steps to improve its position in these key markets by updating its betting platform. In February, Pascal Chaffard shifted from his existing role of CFO to head of the online gaming and betting unit, taking over from Kindred CEO Nils Andén, who left to “pursue new projects”.
On Tuesday, FDJ announced that Dan Lévy, formerly of Ipsos, would assume Chaffard’s previous role of CFO.
The company said its new management team was “fully committed” to restoring the online betting and gaming unit’s performance, especially in the UK and Netherlands.
FDJ lowers FY26 guidance
FDJ reported year-on-year dips across the majority of its business units in its FY2025, with the company hit hard by increased taxes.
Chairwoman and CEO Stéphane Pallez again cited tax hikes as a continuing headwind.
“In an environment still affected by the impact of tax increases and tighter regulations on gaming, the group is stepping up its efforts in operational efficiency, synergies and financial discipline, with the aim of returning to sustainable, value creating growth from the second half of the year onwards, for the benefit of all its stakeholders,” Pallez said.
Given FDJ’s Q1 performance, the business said it “now expects” GGR to slightly increase across 2026, although it also predicts a narrow decline in revenue with additional calendar tax increases on gaming of close to €90 million.
Its recurring EBITDA margin is expected to be between 23% and 24%, slightly down on the previous FY26 target of 24.5%.
Mixed performance in France for FDJ in Q1
FDJ’s French lottery and retail sports betting business unit also posted mixed results.
The unit’s GGR was stable at €1.74 billion, although revenue again dipped 2% to €627 million with a €15 million impact in increased taxes.
The company said the performance in France reflected temporary impacts at the end of Q1, such as less attractive sports fixtures and a high payout ratio for retail sports betting.
Point-of-sale revenue in France also fell 3% to €546 million, but online lottery revenue did edge up 1% to €81 million.
Despite the flat growth of its French lottery and retail sports betting unit, FDJ still anticipates annual revenue growth for the segment as it overcomes the temporary impacts experienced in Q1.
Kyle Goldsmith
Kyle has been with Clarion since December 2023, joining from the world of sports journalism, subsequently becoming a LatAm-facing senior reporter with iGB.
Original article: https://igamingbusiness.com/finance/quarterly-results/fdj-uk-netherlands-turnaround-tax-pains-q1/
