On Wednesday, FDJ United disclosed a downturn in its financial performance for the first half of 2026, with both revenue and gross gaming revenue (GGR) experiencing declines. The company reported a 4.5% decrease in revenue to €1.78 billion and a 1.3% drop in GGR to €4.31 billion. This decline comes amidst heightened tax pressures in some of its primary markets, which include France, Romania, the United Kingdom, and the Netherlands. The impact of these tax increases was estimated at approximately €52 million, as per Stéphane Pallez, FDJ’s CEO and chairwoman. Additionally, the lottery sector’s underperformance contributed to the downturn, with GGR falling by 2.1% to €2.98 billion and revenue dropping by 4% to €1.02 billion. The company attributed this to fewer large Euromillions jackpots compared to the previous year and reduced foot traffic at retail locations due to exceptional weather conditions.
In terms of retail sports betting, the company also faced challenges, with GGR decreasing by 1.1% to €450 million and revenue declining by 2.9% to €218 million during the same period. Despite these setbacks, Pallez maintained an optimistic outlook, emphasizing that the company’s strong financial structure positions it to continue investing in product development and innovation to drive sustainable growth.
FDJ’s online betting and gaming unit performed in line with expectations, despite the challenges faced in other areas. The unit maintained a stable GGR of €702 million, although its revenue saw a 7.4% decline to €431 million. The French and Scandinavian markets were the primary drivers of this segment’s performance. Excluding the UK and the Netherlands, the unit’s GGR increased by 6.6%, and revenue saw a slight increase of 0.6%. In the Netherlands, the Unibet brand showed signs of recovery, with a smaller GGR decline of 4.1% in the second quarter, following a 15% drop in the first quarter. However, the UK market remains challenging, with FDJ acknowledging ongoing difficulties. Despite these challenges, the company has no immediate plans to exit the UK market. Pascal Chaffard, head of gaming and betting, reaffirmed their commitment to resolving issues in the UK, emphasizing that improvement may take several quarters.
FDJ is implementing targeted measures to enhance performance in the UK and Netherlands, establishing task forces to foster better collaboration and operational efficiency. The company’s strategy involves reviewing its Kindred business portfolio, which could potentially impact its future market presence in the UK despite earlier statements to maintain its operations there. Stéphane Pallez indicated that this review is aimed at optimizing investment to ensure profitable growth but did not suggest any impending market exits.
As a result of the first-half performance, FDJ has revised its full-year 2026 guidance. Initially, the company anticipated a slight increase in GGR and a small decrease in revenue. It expected revenue growth in the French lottery and retail sports betting segments, along with improved performance in the online unit for the latter half of the year. However, the company now projects stable GGR for both the lottery and retail sports betting sectors, as well as the online division, with a modest revenue decline anticipated.
FDJ reported an adjusted net profit of €180 million for the first half of the year. Moving forward, the company is focused on optimizing resource allocation to better navigate the current challenges and capitalize on growth opportunities. The next steps will involve closely monitoring market conditions and adjusting strategies to maintain competitiveness while exploring new avenues for revenue enhancement.
4.2/5
