FDJ revenue hit by tax hikes, weak lottery jackpots and heatwaves
Europe’s largest lottery operator FDJ UNITED has reported a 4.5% fall in first-half revenue after higher gaming taxes, weaker Euromillions jackpots and unusually hot weather in France weighed on lottery sales, although the group maintained its profitability guidance for the full year.
The gambling giant posted gross gaming revenue (GGR) of €4.31 billion for the six months to June 30, down 1.3% on the previous year, while revenue declined 4.5% to €1.78 billion. Recurring EBITDA fell to €404 million, representing a margin of 22.7%, in line with the company’s annual target.
FDJ said the biggest drag came from its core French lottery business, where GGR fell 2.1% to €2.98 billion and revenue dropped 4.0% to €1.02 billion.
The gambling operator blamed the decline on a significantly lower number of high-value Euromillions jackpots compared with the first half of 2025, as well as reduced foot traffic at retail outlets during exceptional heatwaves that swept across France in the second quarter.
However, the company said the underlying lottery business remained resilient once jackpot cycles were stripped out. Excluding prolonged Euromillions jackpot runs, lottery GGR increased by 1%, while online lottery GGR climbed 6%.
To help reverse the slowdown, FDJ will launch a sales action plan during the second half of the year while continuing to invest in new products, including refreshed versions of Euromillions and Loto in 2027 and the introduction of a new €10 instant-win game.
Retail sports betting also softened, with first-half GGR slipping 1.1% to €450 million, although FDJ said betting performance improved during the second quarter after strengthening its product offering.
The group’s online betting and gaming division delivered mixed results, with GGR remaining flat at €702 million while revenue declined 7.4% to €431 million, reflecting the impact of higher gaming taxes.
Outside the United Kingdom and the Netherlands, however, the business continued to grow. Excluding those two markets, online betting and gaming GGR increased 6.6%, while revenue edged up 0.6%, driven by strong performances in France and Scandinavia.
The Netherlands also showed signs of recovery, with the decline in GGR improving from 15% in the first quarter to 4.1% in the second, although FDJ said trading conditions remained challenging. In the UK, management expects performance improvement measures to begin delivering results by the end of 2026.
The company also revealed punters wagered more than €700 million across its brands during the FIFA World Cup between June and July, although a higher payout ratio to players limited the financial benefit, in line with expectations.
“The Group’s performance in the first half is still affected by higher taxation, alongside factors inher-ent to the lottery business and the impact of exceptional heatwaves which have weighed on traffic at points of sale in France,” FDJ United Chairwoman and Chief Executive Officer Stéphane Pallez said.
“Backed by solid fundamentals and a robust financial structure, FDJ UNITED continues to invest in innovation, the attractiveness of its product portfolio and the acceleration of its transformation in order to return to a path of sustainable, profitable and value-creating growth.”
Looking ahead, FDJ has slightly lowered its revenue expectations and now expects a low single-digit decline for 2026, while maintaining its recurring EBITDA margin guidance of between 23% and 24%.
The company also confirmed it has begun reviewing its online betting and gaming market portfolio, along with a number of non-core assets, as part of a broader strategy to optimise capital allocation and improve long-term returns.
