FDJ UNITED has reported a decline in online betting and gaming revenue for the first quarter of 2025 due to “tougher regulation implementation” in certain European markets.
The operator’s overall revenue during the quarter came in at €925m, a 30% increase year-over-year (Q1 2024: €710m), reflecting the Kindred integration following the completion of its acquisition in October last year.
On a pro forma basis, FDJ’s overall revenue was down 1.4% YoY (Q1 2024: €938m), with the latter figure assuming if Kindred was acquired on 1 January 2024 and being based on the scope of consolidation actually retained by the operator.
Online betting and gaming revenue for the group dropped by 9.8% YoY at constant exchange rates to €231m (2024: €256m pro forma).
FDJ noted that its number of active players in Q1 grew by over 5% when compared to the previous quarter and by almost 10% when compared to the same period last year.
However, the operator stated that the revenue decline was due to the “tougher regulation implementation” in the Netherlands and the UK, alongside a “sharp increase in taxation in the Netherlands, already announced by the Group”.
Market performances
Excluding the UK and the Netherlands, FDJ noted that revenue for the segment was up by almost 8% following good market performances, including in France, driven by the new format of European football competitions.
For operations in the Netherlands, the group declared a 41% revenue decrease in Q1 due to the new regulation in October 2024, which introduced deposit limits, as well as the gaming taxation increase to 34.2% (previously 30.5%) and a drop in sports betting gross margin following unfavourable results for the operator.
UK operations saw a 27% decline in Q1 revenue, which FDJ attributes to “a particularly high comparison base and the unfavourable impact of the regulatory measures implemented in 2024, despite the increase in the number of active players”.
The operator also highlighted its continuing rollout of its proprietary platforms, including the separation of player accounts between lottery and activities open to competition being finalised in France in February, as well as the migration of 32Red in England in March.
Elsewhere, revenue from FDJ’s French lottery and retail sports betting operations rose by 3.6% YoY to €640m (2024: €618m pro forma) following a 6% increase in stakes.
Point-of-sale revenue for the segment rose by 2% to €561m based on a 5% increase in stakes, while online lottery revenue grew by 14% to €79m following an increase in the number of players to 5.8 million.
International lottery revenue dropped by 21.8% to €38m (2024: €49m pro forma) “mainly attributable to Premier Lotteries Ireland, due to non-recurring items, in particular an exceptional number of Lotto jackpots being won”. Payment & Services revenue increased by 0.6% to €16m (2024: €15m).
Stéphane Pallez, Chair and CEO of FDJ UNITED, said: “FDJ UNITED’s performance in the first quarter is in line with the trajectory planned for 2025. Against the backdrop of tougher regulation and taxation in some of its markets, it reflects good momentum in points of sale and an increase in the number of online active players in all its markets.
“Beyond this, the Group is fully committed to the transformation associated with the implementation of its international and digital strategy.”
