FDJ UNITED has highlighted its operational, ESG and financial goals as the operator continues its transformation trajectory following the acquisition of Kindred.
As part of its Capital Markets Day, the group unveiled its strategic plan, Play Forward 2028, where it explained its pathway for the next four years as it strives to assert its “leadership in Europe as a responsible lottery, gaming and betting operator” across financial and non-financial areas.
For 2025, FDJ UNITED expects betting and gaming tax increases in France and the Netherlands, in addition to stricter regulation implementation in major markets, to cause revenue to remain stable compared to 2024 pro forma, as well as a recurring EBITDA margin over 24%.
As for the next four years, the group anticipates around 5% average annual organic growth, over 26% recurring EBITDA margin, recurring EBITDA to free cash flow conversion rate remaining above 80%, cumulative capital expenditure between €650m to €700m, as well as net debt to recurring EBITDA ratio less than or equal to 2x, with investment-grade debt.
“FDJ UNITED has undergone a considerable transformation since its IPO, with financial and non-financial performance underscoring the success of our strategy for sustainable, profitable growth,” commented Stéphane Pallez, Chair and CEO of FDJ UNITED.
“2025 is a pivotal year for the Group, with the consolidation of Kindred, the benefits of which are reflected in our ‘Play Forward 2028’ strategic plan.”
Performance review
In 2024, FDJ UNITED grew its digital and international presence when the group completed the acquisition of Kindred in October last year.
As a result, the group’s international operations now account for around 26% of its revenue (2019: 3%), while its digital revenue has risen to 35% (2019: 5%).
Compared to 2019, FDJ UNITED’s overall revenue has increased by a factor of 1.8 to €3.8bn, with more than 5% average annual organic growth, while recurring EBITDA was up by a factor of 2.3 to €964m, with recurring EBITDA margin rising by 500 basis points to over 25%.
However, in its Q1 2025 results back in April, the group reported a decline in online betting and gaming revenue due to “tougher regulation implementation” in the Netherlands and the UK, as well as the taxation increase in the Netherlands.
Revenue came in at €925m, a 30% increase year-over-year (Q1 2024: €710m), but down 1.4% YoY (Q1 2024: €938m) on a pro forma basis. Online betting and gaming revenue for the group dropped by 9.8% YoY at constant exchange rates to €231m (2024: €256m pro forma).
Plan of action
Entering its next four-year plan, FDJ UNITED expects sustainable growth in line with the ongoing value creation from the previous plan, with around 5% average annual organic growth and a recurring EBITDA margin of more than 26%.
This is expected to be driven by operating leverage and efficiency measures, with a more than €120m total impact, mostly attributable to online betting and gaming and close to 40% to French lottery and retail sports betting.
The group added that it will continue to achieve gains from its past and future investments in data and AI usage, improving gaming range and player experience responsibly.
FDJ UNITED expects recurring EBITDA to free cash flow conversion rate to stay over 80%, €650m to €700m cumulative capital expenditure equating to an annual amount nearer to the lower end of its historical range of 4% to 5% of revenue, as well as net debt to recurring EBITDA ratio less than or equal to 2x, with investment-grade debt.
Year-on-year dividend growth is also forecasted for the group, reflecting its performance and medium-term outlook, based on a payout ratio of at least 75% of adjusted net profit.
Looking to continue expanding its CSR initiatives and maintaining a high-level non-financial performance, FDJ UNITED is making a dual commitment.
The first is to continue to reduce the proportion of revenue attributable to at-risk players, with plans to share its target goal early next year. The second is to raise its voluntary contribution level to social and environmental causes to 5% of its reported net profit by 2030 (2024: 2.7%).
Within this framework, a €5m investment has been made into Averrhoa Nature-Based Solutions, an Ardian-led fund in partnership with aDryada that seeks to restore forests, wetlands and mangroves, in addition to making carbon sequestration contributions from the atmosphere while producing high-quality carbon credits.
Business ambition
For online betting and gaming, FDJ UNITED is striving to expand across all markets, being in the top three in seven of its eight main European markets with a high single-digit annual revenue growth, as well as higher growth in recurring EBITDA and more than 30% in recurring EBITDA margin by 2028.
As for the French lottery and retail sports betting, the group has set its sights on sustainable, profitable growth in its player pool across its two distribution channels, complemented by an omnichannel direction.
Average annual revenue growth for this segment is projected to be in the low to mid-single digit, low single digit for points of sale and low to mid-teens for ilottery, with a recurring EBITDA margin of over 35% by 2028.
Pallez noted: “This plan opens a new chapter in our transformation, with the ambition of asserting our position as Europe’s leading responsible betting and gaming operator, based on a more diversified, more digital and more international business portfolio. ‘Play Forward 2028’ aims to continue to create value for our shareholders and all our stakeholders.”
