FDJ United revenue falls 8.1% in third quarter, cuts 2026 outlook
Key Facts
FDJ United cut its 2026 outlook after third-quarter revenue fell 8.1% to €794 million, compared with €864 million in the same period of 2025, according to a company statement. The revision marks a further shift to weaker expectations after the group began the year targeting slight revenue growth. Total gaming revenue in the third quarter also fell 6.1% to €1.950 billion, from €2.077 billion a year earlier. In the first nine months, revenue was €2.576 billion, down 5.6%, while total gaming revenue reached €6.264 billion, down 2.8%. The results put the latest quarter’s performance within a broader decline in the group’s revenue this year.
The company now targets a low-single-digit decline in total gaming revenue in 2026 and a mid-single-digit decline in revenue, with a recurring EBITDA margin of around 23%. This differs from the guidance announced in April, when it forecast a slight increase in total gaming revenue and a slight decline in revenue. In February, the group had targeted slight revenue growth and a recurring margin of 24.5%, based on an expected increase in total gaming revenue. The outlook revisions announced in April, July and October point to successive reductions during the year. The company has thus moved from expecting slight growth in total gaming revenue to a low-single-digit decline, and from a slight decline in revenue to a mid-single-digit decline.
FDJ attributed its performance to a lower number and value of major jackpots compared with 2025, alongside higher sports bettors’ winnings in the third quarter. The company also cited weak customer traffic at French retail outlets amid difficult economic conditions. Gaming taxes on the group rose by €62 million in the first nine months of 2026. According to a summary of the third-quarter results call published on Investing.com, the company expects the tax impact on full-year results to exceed €70 million. These factors combine revenue pressure from jackpots and betting with weaker retail activity and a higher tax burden on the group’s results.
At the business level, the French lottery and retail sports betting unit posted revenue of €1.794 billion in the first nine months, down 4.8% from the same period. Revenue at the online betting and gaming unit fell 8.2% to €619 million over the same period. However, total gaming revenue in the digital unit, excluding the Netherlands and the United Kingdom, rose 5.7%. This highlights the contrast between growth in total gaming revenue in certain digital markets and a decline in the unit’s revenue overall. The Dutch and British markets are excluded from the growth figure reported by the company, which does not include their performance.
Chief Executive Stéphane Pallez said the group “remains fully committed and continues resolutely to implement its business and performance plans.” The company linked its plans to restoring sustainable growth momentum, drawing on innovation and the appeal of its product portfolio. In its first-half results, it had pointed to a plan to support sales in the second half and to relaunch EuroMillions and Lotto in 2027 as part of an update to its gaming offerings and innovation. The group also reaffirmed its target of increasing annual distributions, with a payout ratio of at least 75% of adjusted net profit. This places its distribution policy and product update plans alongside efforts to improve performance in the period ahead.
On next steps, FDJ said the results of its review of markets in the online betting and gaming unit and of non-core assets would be announced by early 2027 at the latest. The company did not specify a more precise date for announcing those results in the statement. The group is scheduled to publish its 2026 annual results on 18 February 2027, according to its financial calendar. That disclosure will present the full-year results in light of the revised outlook and the pressures cited by the company. The review of markets and non-core assets remains another milestone, with the group saying its conclusions will be released early next year.