FDJ United hailed a notable rise in online lottery revenue in Q1, but said regulatory changes in the UK and the Netherlands impacted online sports betting and gaming revenue.
Overall revenue in Q1 was up 30 per cent year-on-year on a reported basis to €925m.
Online lottery revenue for the group, recently renamed from FDJ after the incorporation of Kindred Group, rose 14 per cent to €79m.
The company said the “sharp increase” in the number of players to 5.8 million over the last 12 months means online now accounts for 15 per cent of its lottery games revenue.
Online sports betting and gaming revenue excluding the UK and the Netherlands was up by almost eight per cent year-on-year in Q1, but including those markets saw revenue fall 10 per cent to €231m.
“FDJ United's performance in the first quarter is in line with the trajectory planned for 2025,” said chairwoman and CEO Stéphane Pallez.
“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.”
In the Netherlands, FDJ United said a 41 per cent drop in revenue was caused by the deposit limits introduced in October, which it said have “severely limited” net monthly deposits.
The company said the tax rise from 30.5 per cent to 34.2 per cent has also had an impact, as have a fall of more than 100 basis points in the gross margin on sports betting as a result of “unfavourable” results.
“In parallel with the introduction of these measures, which have a significant impact on the business and profitability of licensed operators, the channelling rate in the Netherlands had reduced significantly, to less than 50 per cent by 2024,” FDJ United said.
In the UK, the company’s revenue fell 27 per cent. It said regulatory measures implemented as part of the white paper on gambling reform have impacted its performance there.
Nevertheless, the number of active players in FDJ United’s online betting and segment grew five per cent compared with Q4 2024 and by almost 10 per cent year-on-year.
There was “good performance” in other markets such as France, driven by the new format of the UEFA Champions League, Europa League and Europa Conference League.
French lottery and retail sports betting revenue was up four per cent to €640m, based on stakes increasing by six per cent.
Point-of-sale revenue was up two per cent to €561m, based on stakes rising by five per cent.
Overall lottery revenue was up five per cent to €528m, driven by 11 Euromilions jackpots in Q1 in excess of €75m, including seven over €130m.
“This level of jackpots, a record for a first quarter, is a recruitment driver, particularly online,” FDJ United said.
