FDJ United reports mixed H1 results as group revenue sees 31% jump, but Kindred falls 12%

FDJ United, the French gaming and lottery group formerly known as Française des Jeux, reported first-half 2025 results showing a sharp contrast between its domestic and international operations.

Group revenue for the six months ended June 30 reached €1.87 billion ($2.13 billion), a 30.7% year-on-year increase on a reported basis, but Kindred, its online betting and gaming arm acquired in late 2024, saw revenue decline by 11.5% compared to the same period last year.

The company attributed the drop in Kindred revenue to unusually strong comparables, as Euro 2024 had driven record results in the second quarter of 2024.

“It’s worth noting that Q2 2024 was Kindred’s best quarter ever, which is setting, obviously, a tough comparable base for this year,” FDJ CEO Stéphane Pallez told analysts. “However, we saw in Q2 versus Q1 an improvement of 2%, which we think is a positive indication.”

Pallez noted that the UK and Netherlands, two of Kindred’s largest markets, have been heavily impacted by new regulations and tax increases. Without those markets, Kindred would have recorded a 5% revenue increase, driven largely by “notably strong growth in France, where [the] business is performing great.”

FDJ CEO Stéphane Pallez

Kindred’s performance contrasted with FDJ United’s domestic operations, which reported €1.29 billion ($1.47 billion) in revenue, up 3.6%. Lottery revenue rose 5.8% to €1.07 billion ($1.22 billion), supported by a 15.8% increase in iLottery sales. Retail lottery also grew 4.1%. However, retail sports betting fell 6.2% to €225 million ($256.74 million) due to unfavorable sports outcomes, despite a 3.6% increase in the volume of bets placed.

Recurring EBITDA for the group came in at €441 million ($503.21 million), up 19.1% year-on-year but 9.5% lower than restated figures including Kindred. Net profit fell to €136 million ($155.18 million), a 36.2% decline from last year, impacted by financing costs tied to the Kindred acquisition.

The company reiterated its full-year guidance, forecasting stable revenue on a pro forma basis as 2025 continues to be a “transition year” while integrating Kindred. Pallez said the long-term Play Forward 2028 plan, which aims to achieve an EBITDA margin above 26% by 2028, remains unchanged.

On regulated iGaming in France, Pallez said she does not expect the issue to return to the political agenda soon. “I would say more because of the political environment than anything else,” she said, following recent discussions in the French Senate.

FDJ United expects domestic growth to be supported by the launch of its new Crescendo draw game later this year, a normalization of sports results, and improved conditions for online operations outside the UK and Netherlands.