2025 FDJ United Season: Kindred Aspires to Elevate European Aspirations
FDJ UNITED Faces Regulatory Challenges in Key Markets, Despite Strong Domestic Growth
FDJ UNITED, the French gaming company that rebranded as FDJ UNITED in March, has reported its first-half 2025 results. Despite a significant 31% increase in revenue to €1.867 billion, the company's consolidated net income dropped to €136 million, down from €213 million in the first half of 2024 [1][3].
The decline in net income can be attributed to higher taxes in key markets like the Netherlands and the UK, where FDJ UNITED's international operations have been negatively impacted by regulatory changes. The Dutch online gaming tax increase to 34.2% of GGR and tax rate hikes across the board in France starting in July have presented regulatory challenges for the company [2][3].
In the UK and Netherlands, two of Kindred’s biggest markets, tougher regulations and tax increases have contributed significantly to the revenue drop. Excluding these two markets, Kindred’s revenue would have increased by 5%, driven largely by strong performance in France [3]. However, Kindred showed some recovery in Q2 2025, with a 2% revenue improvement compared to Q1 2025, indicating potential stabilization after the regulatory challenges [3].
Despite these international challenges, FDJ UNITED's French operations experienced solid growth. The French lottery and retail sports betting unit's revenues climbed to €1.29 billion, up 3.6% on a comparable basis. Draw games were particularly successful, with 17 Euromillions draws exceeding €75 million jackpots and four above €250 million [1].
The Group's "Taken up by more than half of employees" employee share scheme was a reflection of FDJ UNITED's "long tradition of sharing FDJ UNITED’s value creation with all stakeholders", according to Stéphane Pallez, Chairwoman and CEO of FDJ UNITED [1].
In terms of financials, adjusted net income for FDJ UNITED in the first half of 2025 stood at €222 million, a 5.4% decrease. This decrease is due to acquisition financing costs and a one-off tax on large French companies. Recurring EBITDA across the Group came to €441 million, down 9.5% compared to the restated 2024 figure, representing a margin of 23.6% [1].
Despite the regulatory headwinds in key markets, FDJ UNITED remains committed to its "Play Forward 2028" strategy and maintains guidance for the whole year [1]. The company's rebranding as FDJ UNITED in March was a reference to its integration of Kindred, PLI, and ZEturf in the past two years [2].
In summary, FDJ UNITED's French operations experienced solid growth, particularly in lottery and retail sports betting. However, international challenges, especially in the UK and Netherlands, have dampened the online gaming arm’s results. Despite this, the company remains optimistic and is pushing forward with its "Play Forward 2028" strategy.
References: [1] FDJ UNITED Press Release, H1 2025 Results, (2025). [2] FDJ UNITED Press Release, Rebranding as FDJ UNITED, (2023). [3] Reuters, FDJ UNITED's online betting arm hit by tougher regulations, higher taxes, (2025).
- FDJ UNITED could consider diversifying into other sectors such as education-and-self-development or finance, to offset the impact of regulatory challenges in key markets like entertainment and sports.
- In addition to reading financial news about gaming companies like FDJ UNITED, staying updated on general-news can provide valuable insights into regulatory changes that might affect their operations in various markets.
