FDJ United: Kindred H1 revenue dips on tough 2024 comps, wider group up 31%
Summary
FDJ United reported mixed H1 results: Kindred-backed online betting and gaming revenue fell year-on-year against a record Q2 2024 (boosted by Euro 2024), while the wider FDJ United group delivered strong growth driven by French lottery and retail sports. Management describes 2025 as a transition year with Kindred integration on track and guidance reiterated.
Content summary
Kindred (now part of FDJ United) posted an 11.5% decline in H1 revenue versus restated 2024 numbers — a tough comparison because Q2 2024 was its best quarter ever thanks to Euro 2024. FDJ CEO Stéphane Pallez noted a 2% improvement Q2 versus Q1 and said that, excluding the UK and Netherlands (where regulatory headwinds hit performance), Kindred would have grown around 5% driven by strong results in France.
At group level, FDJ United’s revenue jumped 30.7% year-on-year to €1.87bn in H1 2025, supported mainly by French lottery and retail sports. Lottery revenue rose 5.8% to €1.07bn (iLottery up 15.8%), while retail sports betting revenue fell 6.2% to €225m despite a 3.6% rise in bets placed. International lottery revenue dropped 16.9% to €80m, largely due to the Sporting Group disposal. Recurring EBITDA was €441m (reported +19.1% year-on-year, but down versus restated 2024), with a margin of 23.6% vs the company target of above 26% by 2028.
Costs increased following the Kindred acquisition, squeezing operating profit and net profit: operating profit slipped to €260m, pre-tax profit was €226m (-22.2%), and net profit fell 36.2% to €136m. Adjusted net income was €222m (-5.4%). FDJ reiterated full-year guidance: revenue stable vs 2024 pro forma and a target to reduce net financial debt to at least €150m.
Context and relevance
This update matters for investors and operators watching consolidation in European iGaming and the integration risk that comes with large acquisitions. It highlights how one-off events (Euro 2024) can skew comparatives, shows the resilience of FDJ’s core French lottery/retail franchises, and underlines regulatory pressure in the UK and Netherlands as a drag on online growth. FDJ keeps its 2028 margin ambition and dividend policy intact, signalling confidence in long-term targets despite near-term profit pressure.
Key Points
- • Kindred H1 revenue down 11.5% year-on-year versus restated 2024, impacted by an exceptionally strong Q2 2024 (Euro 2024).
- • Excluding the UK and Netherlands, Kindred would have seen c.5% H1 revenue growth, driven by strong performance in France.
- • FDJ United group revenue rose 30.7% to €1.87bn in H1 2025, led by French lottery and retail sports.
- • Lottery revenue +5.8% to €1.07bn; iLottery growth +15.8%; retail sports betting revenue -6.2% to €225m despite more bets placed.
- • Recurring EBITDA reported at €441m; margin 23.6% with a target of >26% by 2028 under the Play Forward 2028 strategy.
- • Costs rose after the Kindred acquisition; net profit fell 36.2% to €136m; adjusted net income €222m (-5.4%).
- • FDJ reiterates 2025 guidance: revenue stable vs 2024 pro forma and a plan to cut net financial debt to at least €150m.
- • Regulated iGaming in France is unlikely to return to the political agenda in the short term, according to CEO Stéphane Pallez.
Why should I read this?
Quick and useful: if you track European iGaming M&A, investor guidance or French lottery performance, this saves you a full read. It explains why Kindred looks weaker on paper (tough comparatives), where FDJ’s real growth is coming from, and what to expect for the rest of 2025 — including the debt reduction goal and the 2028 margin target.
Source
Source: https://igamingbusiness.com/finance/half-year-results/fdj-united-revenue-growth-h1/