La Francaise des Jeux SA

Latest Results (03.08.2026):

La Francaise des Jeux SA — Q2 2025 (first half 2025): the company (reported as FDJ UNITED in its interim report to 30 June 2025) delivered H1 2025 gross gaming revenue of about €4.37bn (+1.6%) and group revenue of €1.87bn (≈ -1.7% vs. H1 2024 restated). Recurring EBITDA was €441m (≈ -9.5% vs restated), recurring operating profit €270m (≈ -13.2% vs restated) and consolidated net profit fell to €136m (-36% vs reported H1 2024). The period was affected by integration costs and higher financing costs related to the Kindred acquisition, material tax and regulatory changes, and one‑off timing effects across segments.

Key financials

GGR: €4.37bn (+1.6%); Revenue: €1.87bn (H1 2025, -1.7% vs H1 2024 restated); NGR: €1.78bn (-1.3%); Recurring EBITDA: €441m (-9.5% vs restated); Recurring operating profit: €270m (-13.2% vs restated); Net profit: €136m (-36% vs H1 2024 reported).

Profit drivers and costs

Lottery retail and draw games performed strongly (French Lottery and Retail Sports Betting BU revenue +3.6%), while Online Betting & Gaming fell ~11.5% (impacted by a tough 2024 comparator—Euro tournament—and tougher regulation/tax in the Netherlands and UK). Costs rose in areas tied to integration and amortisation (notably Kindred PPA), with depreciation/amortisation increasing ~€86m and financial expense moving to a net cost (≈ -€37m) due to acquisition financing.

Segment performance

French Lottery & Retail Sports Betting: €1,290m revenue (+3.6%), recurring EBITDA €464m (36.0% margin). Online Betting & Gaming: €466m revenue (-11.5%), recurring EBITDA €95m (20.3% margin). International Lottery: €80m revenue (-16.9%), recurring EBITDA €15m. Payment & Services: €31m revenue, recurring EBITDA -€2m.

Tax & regulatory impact

From 1 July 2025 French measures increased public levies and social levies across lottery, retail and online betting (e.g., online sports betting public levy up to 59.3% of GGR; CSG increases), plus a 15% tax on gaming advertising/promotions. The Netherlands also raised online gaming levies to 34.2% (from 30.5%) and strengthened player‑protection rules—these changes materially weighed on H1 results and outlook in some markets.

Balance sheet, cash and net debt

Total assets €6.19bn. Cash and equivalents €500.6m; current financial assets €378.5m (including PLI cash in trust tied to a Euromillions payout). Net financial debt reported at ~€1.96bn (net financial debt position), with the Group targeting a net debt reduction of at least €150m in 2025.

Outlook and guidance

2025 guidance reiterated: stable full‑year revenue vs 2024 restated, recurring EBITDA margin above 24% (including a €20m expected performance‑plan charge), and net financial debt reduction of at least €150m. Management expects a stronger Q4 for Online Betting & Gaming (UK/NL comps easing) and product/programme launches in lottery (e.g., Crescendo) to support H2.

Corporate actions and strategy

The Group restructured into four business units and rebranded to FDJ UNITED (reflecting Kindred, PLI and ZEturf integration). At Capital Markets Day it set the “Play Forward 2028” plan targeting ~5% average annual organic revenue growth (2025–2028), recurring EBITDA margin >26% by 2028, and a payout ratio ≥75% of adjusted net income with dividends growing year‑on‑year.

Extra‑financials and governance

FDJ UNITED reiterated ESG commitments: new corporate purpose, an “A” Vérité40 carbon rating for the fourth year, a €5m investment in nature‑based solutions, increased voluntary social/environmental contributions target (5% of reported net income by 2030 from 2.7% in 2024), and launch of an in‑house player‑protection tool (“FDJ Protect”).

Shareholder / employee items

Employee share ownership plan (1% of capital) launched April 2025 was heavily oversubscribed; employee ownership now represents >4.6% of share capital via collective schemes. Post‑close, Predica sold its remaining 3.3% stake on 8 July 2025.