FDJ United Q3 2025 slides: revenue growth masks segment challenges amid tax headwinds By Investing.com
Key Takeaways
- FDJ United reported headline Q3 revenue growth of 29%, but restated figures showed a 3% decline due to acquisition timing and tax impacts.
- Increased gaming taxes in key markets, especially France, created significant headwinds, reducing Q3 revenue by €21 million.
- The Lottery and Retail Sports Betting (LSF) segment performed well, with revenue up 2.1%, boosted by strong lottery sales and iLottery growth.
- The Online Betting and Gaming (OBG) segment suffered a sharp 15.6% revenue decline, primarily due to regulatory implementations in the UK and Netherlands.
- CEO Stéphane Pallez confirmed the company is focusing on its transformation plan and the 'Play Forward 2028' growth objectives to counter current challenges.
FDJ United released its third quarter and nine-month 2025 results on October 15, revealing a dichotomy between headline growth and underlying performance challenges. While reported revenue increased by 29% year-over-year to €864 million, restated figures showed a 3% decline, largely attributed to increased gaming taxes across France, the Netherlands, and Romania, which reduced Q3 revenue by €21 million. The company's stock reacted slightly negatively, slipping 0.36% following the announcement. Performance varied significantly across segments: the Lottery and Retail Sports Betting (LSF) unit demonstrated strength, with Q3 revenue rising 2.1% driven by robust lottery sales, including a 14.1% jump in iLottery revenue. Conversely, the Online Betting and Gaming (OBG) segment faced severe headwinds, reporting a 15.6% revenue decline due to stricter regulations in the UK and Netherlands, despite growth when those markets were excluded. Chairwoman and CEO Stéphane Pallez confirmed the company is prioritizing its transformation and performance plan to navigate these external pressures and meet its longer-term 'Play Forward 2028' objectives.
