FDJ UNITED details three-year growth plan for European success

FDJ UNITED has revealed bold plans to achieve significant growth in European markets over the next three years, after the French lottery operator completed the integration of the recently-acquired Kindred Group into the business.

The group has publicly stated its ambition to become Europe’s leading gambling operator after a series of acquisitions provided platforms for growth outside its core French market and the lottery sector.

It has now added detail to its ambition by telling shareholders that it is targeting average annual organic revenue growth of around 5% and a recurring EBITDA margin of more than 26% by 2028.

Chairwoman and CEO of FDJ UNITED, Stéphane Pallez, said: “FDJ UNITED has undergone a considerable transformation since its IPO, with financial and non-financial performance underscoring the success of our strategy for sustainable, profitable growth. 

“2025 is a pivotal year for the group, with the consolidation of Kindred, the benefits of which are reflected in our ‘Play Forward 2028’ strategic plan. 

“This plan opens a new chapter in our transformation, with the ambition of asserting our position as Europe’s leading responsible betting and gaming operator, based on a more diversified, more digital and more international business portfolio. ‘Play Forward 2028’ aims to continue to create value for our shareholders and all our stakeholders.” 

Further targets announced included achieving recurring EBITDA to free cash flow conversion rate remaining above 80%, as well as cumulative capital expenditure between €650m and €700m. 

A taxing time for growth ambitions

FDJ has placed greater emphasis on its digital and international presence since 2019, which now account for 35% and 26% of revenue, respectively. This helped it to achieve overall turnover of €3.8bn and yearly organic growth of more than 5%. 

It has also undertaken an acquisition spree in the past three years, snapping up Premier Lotteries Ireland for €350m, French horseracing betting group ZEturf for €175m and most notably Unibet owner Kindred Group Plc for €2.4bn. 

The last of those deals has given FDJ reach into multiple new markets and a significant presence in Europe’s online casino sector. 

However, the task of continuing its growth trajectory via organic routes faces the hurdle of tax increases and stricter regulation in several major markets. 

Most worrying for the group are the changes in its home French market, where it expects to take a €45 million hit as a result of social security changes and industry-specific tax rises. For example, online sports betting tax is due to increase from 54.9 % to  59.3 %, while online poker will climb from 0.2 % of stakes to 10 % of GGR.

The company’s board will be hoping that some of that may be offset by the legalisation of online casino in France, although progress towards that goal appears to have stalled and the timelines is, at best, uncertain. When the change finally arrives though, the acquisition of Kindred’s iGaming expertise and brands is likely to prove a major asset to its attempts to become market leader.