FDJ has released its 2024 annual results. The group reported revenue of €3.07 billion, up 16.9% year-on-year. Consequently, EBITDA reached €792 million, up 20.6%.
According to FDJ, this was the first full year of profits including the Kindred business, acquired in 2023. The deal, worth €2.45 billion, was completed in October.
However, Kindred’s performance was not highlighted as a separate business unit in the results. The company highlighted that tax increases in France resulted in it paying €45 million in tax revenue in 2024.
In a statement, the FDJ said: “The impact of higher taxes is likely to increase in the coming years.”
The tax contribution is forecast to reach €100 million in 2027, with more than half related to the online betting and gambling business, which includes Kindred.
In 2024, the company’s French tax bill will be almost €45 million, while the Dutch contribution will amount to €10 million. This will impact the group’s overall revenue, which is targeting €3.8 billion in 2025, with a recurring EBITDA margin of over 24%.
Impact of new taxes in France
In France, operators will face higher tax rates from July. The changes include higher social security contributions. The finance bill for the 2025 budget has set out these changes.
Gambling tax rates in France are based on GGR (gross gaming revenue) and vary between sectors. In addition, operators pay a separate social security contribution, which will increase across all sectors.
Performance by business segments
Revenue from the French retail lottery and sports betting business totaled €2.5 billion in 2024, up 5.8%. The breakdown of revenue was as follows: €2.05 billion for lottery and €453 million for retail sports betting. The segment benefited from major sporting events such as the UEFA Euro tournament.
Net revenue from online betting and gaming reached €1.03 billion. Meanwhile, casino games accounted for 51% of the total, and sports betting 41%.
Revenue from the international lottery was €190.5 million, and Nivio’s payments business reported €64.4 million. Nivio offers an app for paying for utilities, tax bills, tolls and other services.
FDJ also benefited from a cost-cutting program that began in late 2023, which included exiting the North American market. Recurring EBITDA from this unit was €293.2 million, representing 28.5% of revenue.
Management reorganization and rebranding at FDJ
The company has announced a rebranding to FDJ United, reflecting its international development. In a statement, FDJ said: “This new name reflects the group’s European scale, while paying homage to its roots and history.”
Furthermore, FDJ stated: “FDJ United is the group’s new corporate brand, with the signature ‘Playful. Play fair. Play forward.” However, the FDJ name will continue to be used in France due to its long brand history.
The group has also reorganized its executive committee. Nils Andén, CEO of Kindred, has been appointed director of online betting and gaming. Patrick Buffard has taken over as head of French lottery and retail sports betting. Stéphane Pallez (CEO), Charles Lantieri (deputy CEO) and Pascal Chaffard (CFO) remain in their positions.
The restructuring of the business units includes the creation of a French retail lottery and sports betting arm, as well as an area dedicated to online betting and gambling.
