FDJ UNITED reported a sharp fall in net income for 2025 as higher gaming taxes and tighter regulations weighed on its online business, though the French lottery operator maintained margins and lifted its medium-term performance target.
The group posted gross gaming revenue (GGR) of €8.7 billion ($10.28 billion), up 1% on a restated basis, while revenue fell 3% to €3.7 billion ($4.3 billion). Recurring EBITDA came in at €902 million ($1 biillion), representing a margin of 24.5%.
Net income dropped 55.9% to €176 million ($207.35 million). Adjusted net income declined 0.7% to €487 million ($574 million).
The board proposed a dividend of €2.10 per share, up from €2.05 previously.
Chairwoman and CEO Stéphane Pallez said: “In 2025, FDJ UNITED demonstrated the strength of its model and continued its transformation, in an environment affected by tax increases and tighter regulations on gaming.
“With a strengthened performance plan and a new organization of its online betting and gaming business unit, the Group will continue to improve its operational efficiency to return to its profitable and sustainable growth path by 2026.”
The integration of Kindred was completed during the year. FDJ UNITED raised its multi-year performance plan target to more than €150 million by 2028, from €120 million previously.
Tax increases reduced 2025 results by more than €50 million, the company said. The impact is expected to rise to nearly €90 million in 2026.
France introduced significant GGR tax hikes from July 1, 2025, across lottery, sports betting, and online gaming, alongside a 15% tax on advertising and promotional spending and an exceptional profit tax, which cost €26.7 million in 2025 and is expected to have a similar effect this year.
In the Netherlands, online gaming tax rose from 30.5% to 34.2% in January 2025 and increased further to 37.8% in January 2026. Romania increased its sports and horse betting levy from 21% to 30%, while the UK plans to raise online casino tax from 21% to 40% from April 2026.
In French lottery and retail sports betting, GGR rose 2.8% to €6,950 million, and revenue increased 1.4% to €2,537.9 million. Recurring EBITDA reached €913.3 million, with a margin of 36.0%. Online lottery revenue climbed 8.1% to €316.2 million, with more than six million online lottery players at the end of 2025.
Online betting and gaming saw GGR decline 8.1% and revenue fall 11.8% to €907.7 million. Recurring EBITDA was €181.6 million, with a margin of 20.0%. The unit recorded significant GGR declines in the UK, down 22.4%, and the Netherlands, down 38.3%, despite active players rising by more than 10%. The company said it is reorganising the division and deploying its proprietary KSP technology platform.
International lottery revenue fell 10.7% to €169.9 million, while recurring EBITDA improved to €38.3 million from €24.9 million in 2024.
Payment and services revenue decreased 3.9% to €61.9 million, with recurring EBITDA at negative €5.1 million.
For 2026, FDJ UNITED expects slight revenue growth and a stable recurring EBITDA margin of 24.5%, despite an estimated €90 million tax impact. The group anticipates reducing net financial debt by around €100 million.
Over the medium term, the company targets around 5% revenue growth by 2028 on a constant tax basis, a recurring EBITDA margin above 26%, EBITDA-to-cash conversion above 80%, capital expenditure of 4–5% of revenue and a dividend payout ratio of at least 75%.
FDJ UNITED said it contributed €5.1 billion to public finances in France and supported or maintained 57,200 jobs, while paying €1 billion in retailer remuneration.
On ESG metrics, the group maintained its MSCI AA rating for the third consecutive year and retained a Vérité40 carbon rating of “A” for the fourth year. It conducted 33,000 responsible gaming awareness calls and 2,800 mystery visits to enforce the underage ban, renewing its responsible gaming certification at 100% compliance.
Alongside its FY25 results, the company reported Nils Andén, former Kindred chief and current chief online betting and gaming officer for the group, would be leaving to “pursue new projects”. CFO Pascal Chaffard has been named as Andén’s successor to lead the online business arm.
Original article: https://www.yogonet.com/international/news/2026/02/24/117759-fdj-2025-profit-falls-on-tax-hikes-kindred-chief-nils-anden-to-depart-online-arm
