FDJ United Announces Impressive First-Half Profits, Remains Confident in 2025 Forecast
FDJ United, a leading online betting and gaming company, has reported a robust 31% revenue growth in the first half of 2025. This impressive growth can be attributed to several strategic initiatives and investments, as detailed below.
Strategic Acquisitions and Integration
The successful integration of Kindred into FDJ United's operations has bolstered the company's adjusted net income and likely revenue. This acquisition has proven to be a significant contributor to FDJ United's growth, as the company continues to reap the benefits of this strategic move.
Investment in Data and Artificial Intelligence
FDJ United's commitment to responsible investment in data and artificial intelligence has improved their gaming offerings and enhanced the customer experience. This investment aligns with their "Play Forward 2028" strategic plan, which focuses on sustainable growth and innovation.
Geographic Diversification and Restructuring
The company's geographic diversification and restructuring initiatives have aimed at long-term value creation and operational resilience amid regulatory and tax pressures. These efforts have contributed to stable revenue growth despite challenges in recurring EBITDA.
Employee Alignment through Share Ownership
FDJ United's employee share ownership plan has reflected the company's tradition of sharing value creation with all stakeholders. This initiative has potentially enhanced operational performance and value creation, strengthening the company's internal alignment.
Despite this strong revenue increase, FDJ United has experienced a decline in net income and profit margins due to higher expenses and costs related to the integration and operational investments. The company, however, remains confident in balancing growth and profitability, reiterating its guidance for stable revenue and maintaining an EBITDA margin above 24% for 2025.
Key Financial Highlights
- FDJ United's Q2 revenue in 2025 was EUR 235 million, representing a 2% year-over-year increase.
- Recurring EBITDA for FDJ United in Q2 2025 reached EUR 441 million, representing a margin of 23.6%.
- The company's lottery and sports betting businesses in France generated a revenue of EUR 1.29 billion, up 4% on a restated basis.
- Online betting and gaming BU2 revenue for FDJ United was EUR 466 million, down 12% on a restated basis.
- FDJ United's digital distribution channel for lottery saw a growth of 16% to EUR 160 million.
- The company reported a revenue of EUR 1.87 billion for the first half of 2025.
- Lottery revenue reached EUR 1.07 billion, up 6% year over year.
- Point-of-sale sports betting revenue declined by 6% to EUR 225 million.
- FDJ United's adjusted net income for Q2 2025 was EUR 222 million.
Stéphane Pallez, FDJ United's chair and CEO, called 2025 a "transition year" due to the ongoing integration of Kindred into the broader business. He stated that the H1 performance of FDJ United was in line with the company's projections. Excluding the UK and the Netherlands, FDJ United's online betting and gaming revenue would have actually been up 5%.
In summary, FDJ United's robust revenue growth was driven by strategic acquisitions, AI and data investments, geographic expansion, and internal alignment efforts, positioned within a broader long-term plan focused on sustainability and regulatory adaptation. The company remains optimistic about its future prospects, aiming to maintain a balance between growth and profitability.
Finance-related activities have played a crucial role in FDJ United's growth, as the company's strategic acquisitions, such as that of Kindred, have bolstered their adjusted net income and likely revenue. Moreover, investing in data and artificial intelligence has not only improved their gaming offerings and customer experience but also aligns with their focus on sustainable growth and innovation, which can be seen as a form of long-term business strategy.
