FDJ UNITED Navigates Tax Storm, Boosts Dividend on Stable Earnings

BOULOGNE-BILLANCOURT, France – February 23, 2026 – European gaming giant FDJ UNITED has demonstrated striking resilience in a year marked by significant regulatory and fiscal headwinds, posting 2025 results that reveal a company adept at navigating turbulence. While a wave of new taxes across Europe clipped revenues, the newly expanded group met its profitability targets, raised its performance plan, and proposed an increased dividend, signaling confidence in its strategic direction.

The company, which rebranded from FDJ Group following its transformative acquisition of Kindred, reported a slight 1% rise in gross gaming revenue (GGR) to €8.71 billion on a restated basis. However, after accounting for over €50 million in new gaming taxes, group revenue fell by 3% to €3.68 billion. Despite this top-line pressure, FDJ UNITED delivered a recurring EBITDA of €902 million, maintaining a stable margin of 24.5% and meeting its financial targets for the year.

A Balancing Act Amidst a Regulatory Storm

The 2025 financial year was defined by what the company termed an "environment marked by adverse factors." This was not an overstatement, as a "tax contagion" swept across Europe, with governments seeking to increase their share of gaming revenues. FDJ UNITED faced significant tax hikes in its core markets, including France, the Netherlands, and Romania.

In France, the Social Security Financing Act for 2025, effective July 1, hiked the public levy on online sports betting GGR from 54.9% to 59.3% and introduced a new 15% tax on advertising spend. In the Netherlands, the online gaming tax jumped from 30.5% to 34.2% of GGR in January 2025, with another increase to 37.8% already slated for 2026. These measures, combined with increases in other jurisdictions, directly reduced the company's revenue and, by extension, its EBITDA.

The pressure is set to continue, with FDJ UNITED forecasting an additional tax impact of nearly €90 million in 2026, driven by the full-year effect of 2025's increases and new levies taking effect, notably in the United Kingdom.

Stéphane Pallez, Chairwoman and Chief Executive Officer of FDJ UNITED, acknowledged the difficult climate in the company's announcement. “In 2025, FDJ UNITED demonstrated the strength of its model and continued its transformation, in an environment affected by tax increases and tighter regulations on gaming,” she stated. “With a strengthened performance plan and a new organization of its online betting and gaming business unit, the Group will continue to improve its operational efficiency to return to its profitable and sustainable growth path by 2026.”

The Power of the Performance Plan

FDJ UNITED’s primary weapon against these external pressures is a robust internal performance plan, which it is executing ahead of schedule. The company announced it had achieved its initial 2026 savings target of over €50 million a full year early, in 2025.

Buoyed by this success, the group has raised the stakes on its own efficiency drive. The cumulative savings target for the end of 2028 has been enhanced from an initial €120 million to over €150 million. These savings are being driven by cost rationalization, the reorganization of commercial functions, and the ongoing integration of its expanded operations.

This proactive cost management is what allowed the company to protect its profitability and deliver value back to shareholders. The Board of Directors will propose an increased dividend of €2.10 per share at its upcoming Annual General Meeting, up from €2.05 in the prior year. This represents a payout ratio of 80% of the company's adjusted net income of €487 million, underscoring a commitment to shareholder returns even as statutory net income fell due to exceptional charges and impairments.

Digital Transformation and European Ambitions

The 2025 results are the first to fully reflect the company's new identity as FDJ UNITED, a name adopted following the landmark acquisition of Kindred Group in 2024. The integration has catapulted the French lottery operator into the top tier of European gaming, creating a diversified powerhouse with a vast international footprint and a portfolio of iconic online brands like Unibet, 32Red, and ZEturf.

The Online Betting and Gaming business unit, which now incorporates Kindred's activities, faced a challenging year. Its GGR declined by 8.1%, impacted by an unfavorable comparison to 2024, which featured the Euro football tournament, and the tightening of regulations, particularly in the Netherlands. Revenue for the division fell 11.8% to €908 million.

However, beneath the surface, the division is undergoing a significant transformation. The company successfully migrated its Unibet and 32Red brands in the UK and Romania to its proprietary KSP sports betting platform and achieved key milestones in separating and merging player accounts in France. Despite the revenue dip, the unit grew its active player base by over 10%, a key pillar of its long-term strategy. The outlook for 2026 anticipates a boost from the FIFA World Cup in North America and the continued international expansion of its casino brands.

Beyond the Bet: A Commitment to Responsibility and Impact

While navigating financial and regulatory challenges, FDJ UNITED has simultaneously reinforced its commitment to social and environmental responsibility. The company is advancing its "Safe Play" program, deploying sophisticated tools like "FDJ Protect" and "Crucial Compliance" to detect risky gaming behaviors. In 2025 alone, the group made 33,000 proactive awareness-raising calls to players identified as being at the highest risk. These efforts have helped it maintain top-tier non-financial ratings, including an AA rating from MSCI for the third consecutive year.

The company's economic and social contribution, particularly in its home market of France, remains a cornerstone of its identity. An independent study by BDO-Bipe found that FDJ UNITED's activities contributed €5.1 billion to French public finances in 2025 and supported over 57,000 jobs across the country. Its network of nearly 29,000 local retailers received €1 billion in remuneration, cementing its role as a vital partner for small businesses.

This societal contribution is also visible through popular initiatives like the Mission Patrimoine and Mission Nature games, which raised over €29 million and nearly €9 million, respectively, for French heritage and biodiversity projects in 2025. Looking ahead, the group is now actively preparing for the opening of the Finnish market, scheduled for mid-2027.