FDJ’s Kindred saw revenue drop 12% in H1 compared to 2024, a record period for the company thanks to Euro 2024. CEO Stephane Pellaz said iGaming was unlikely to be on the political bill again anytime soon.
In its H1 earnings release on Wednesday, FDJ United flagged an 11.5% year-on-year dip in revenue for its online betting and gaming business, operated by Kindred.
While Kindred was not part of the FDJ group until October 2024, the comparison includes “restated” figures, meaning Kindred’s H1 2024 figures, as if the operator had already been part of FDJ.
FDJ United submitted a €2.45bn (£2.06bn) bid to acquire Kindred back in January last year. The acquisition was closed in October and Kindred was first included in the group’s Q4 2024 numbers.
Speaking on Kindred’s dip to analysts on Wednesday, FDJ CEO Stephane Pallez said: “It’s worth noting that Q2 2024 was Kindred’s best quarter ever which is setting, obviously, a tough comparable base for this year.
“[This was] thanks to the Euro 2024 tournament which contributed to the 21% increase (during the quarter last year).
“However, we saw in Q2 versus Q1, an improvement of 2%, which we think is a positive indication,” she said.
Pallez also highlighted the UK and Netherlands, two of Kindred’s core European markets, as having been “strongly impacted by regulatory headwinds”.
Excluding these two markets, she said Kindred would have experienced 5% revenue growth in H1. This, she said, was due to “notably strong growth in France, where [the] business is performing great”.
However, wider group revenue experienced a 30.7% year-on-year increase during the first half of 2025 to €1.87 billion ($2.14 billion), FDJ United reported. This surpassed the €1.43 billion posted in the corresponding period last year.
Lottery and retail sports core growth areas for FDJ in H1
FDJ noted growth across two core areas: French lottery and retail sports betting,
These businesses were the primary source of revenue by some margin. In total, revenue in this segment topped €1.29 billion, a rise of 3.6%. This area was not impacted by restated figures, as it was part of the business before the Kindred acquisition.
Lottery revenue increased 5.8% to €1.07 billion, helped by a 15.8% rise in iLottery revenue. Retail lottery revenue was also up 4.1% year-on-year, with growth across instant and draws games for both segments.
Retail sports betting revenue dipped 6.2% to €225 million due to unfavourable sports results in H1. However, FDJ did report a 3.6% increase in the number of bets placed, on the back of what it described as an “attractive” football offering.
Elsewhere, revenue from international lottery declined 16.9% to €80 million, mainly due to the disposal of Sporting Group at the end of 2024. Payment and services revenue was also 1.6% lower at €31 million.
Will regulated iGaming make any progression in France?
On the earnings call, Pallez responded to questions on the potential for iGaming to come back onto the political docket in France. She contributed to a discussion in the French Senate a few weeks ago that considered the benefits and drawbacks of regulated iGaming in the country.
However, Pallez said she does not expect politicians to consider regulated iGaming, at least in the short term.
“[I think there is a] very low probability of consultations to come back at this point. I would say more because of the political environment than anything else,” she said.
“To have a public consultation now with a short-term some little vote by the Parliament, I think, is rather unlikely, again, given the political context. I think that’s basically in my comments.”
The discussion on regulating iGaming in France has rumbled on for years but always receives significant pushback from the land-based sector, which has a strong lobbying power.
Long-term earnings target remains for FDJ
Recurring EBITDA followed a similar path as revenue in H1. While the reported €441 million was 19.1% higher year-on-year, it was 9.5% lower than 2024’s restated total. A margin of 23.6% was lower versus both reported and restated. However, FDJ remains confident of its longer-term goals in this area.
During a capital markets day in June, FDJ set out an EBITDA margin target of over 26% by the year 2028. This formed part of its Play Forward 2028 strategy, with Pallez saying this is very much still its aim.
“We target a recurring EBITDA margin above 26% in 2028,” Pallez said on the call. “We are committed to continue to increase the dividend year after year with a minimum payout ratio of 75% of adjusted net income.”
Kindred costs hit FDJ net profit in H1
In terms of spending, this was inevitably impacted by the Kindred acquisition. Based on FDJ’s reported figures, costs were higher in all areas, with sales, marketing and personnel proving the main outgoings.
Again based on reported data, operating profit slipped 1.9% to €260 million. After finance costs and taking off share from joint ventures, pre-tax profit hit €226 million, a decline of 22.2%.
FDJ paid €90 million in tax, meaning a net profit of €136 million, down 36.2% year-on-year.
Adjusted net income was 5.4% lower year-on-year at €222 million.
What can we expect for the rest of the year?
Looking to the remainder of 2025, FDJ United elected to reiterate its guidance, meaning revenue will remain stable compared with 2024 pro forma. In addition, the group aims to reduce net financial debt to at least €150 million.
FDJ said its French lottery and retail sports betting will benefit from the launch of the Crescendo draw game at the end of the year and a normalisation of sports results.
In terms of online betting and gaming, it expects a more favourable basis for comparison in the UK and Netherlands, as well as new marketing and commercial initiatives in all markets. This, it added, will be particularly apparent in Q4.
Pallez said: “2025 stands as a transition year for FDJ United, with the integration of Kindred well on track. In this context, our first-half performance is in line with the expected full-year trajectory.”
