FDJ United cuts 2026 guidance after higher taxes and weaker EuroMillions

FDJ United cut its 2026 guidance again after publishing nine-month results and warning of a significant tax hit, weaker EuroMillions activity and tough conditions in the UK and the Netherlands. The group said it now expects GGR to fall by a low single-digit percentage in 2026 and adjusted profit to decline by a mid single-digit percentage, incorporating more than €70m of additional taxes.

Nine-month and third-quarter results

The group reported adjusted profit of €2.58bn in the nine months ended 30 September, down 5.6% year-on-year. Gross gaming revenue (GGR) declined 2.8% to €6.26bn.

The deterioration was larger in the third quarter: adjusted profit fell 8.1% to €794m and GGR fell 6.1% to €1.95bn. FDJ United attributes part of the decline to a marked reduction in large lottery jackpots versus 2025.

Instant-win lottery activity proved more resilient, with GGR up 1.9%. The retail business in France suffered from reduced footfall; retail sports betting recorded profit of €297m, down 4.5% due to higher payouts to customers. The retail betting note is relevant to the group's [sports](/sports) exposure.

Online betting and gaming GGR decreased 0.8% to €1.01bn, while segment profit fell 8.2% to €619m after €34m of additional taxation allocated to the online channel.

FDJ United said increases in gaming taxes reduced profit by €62m and accounted for more than two percentage points of the overall revenue decline.

"In this challenging environment, the Group remains fully committed and is pursuing the implementation of its action and performance plans to quickly restore sustainable growth," said chair and CEO Stéphane Pallez.

Drivers of the guidance cut

The company listed several specific causes for the new downgrade to 2026 expectations:

• Tax increases: the current guidance incorporates the impact of more than €70m of additional taxes expected for 2026.

• Weaker EuroMillions activity: the group noted a significant reduction in large jackpots and a loss of player participation.

• Conditions in key markets: continued weak performance in the United Kingdom and the Netherlands.

• Above-average sports payouts: retail sports betting saw higher-than-normal return-to-player rates.

In an FAQ included in the group's documentation, FDJ United also provided concrete jackpot figures to illustrate the magnitude of the effect: it said there was only one jackpot above €200m versus 12 a year earlier; and that, to September, there were just 12 EuroMillions jackpots above €130m versus 27 in the prior year.

Response plans: product, technology and portfolio

Management has accelerated operational measures that were already under way:

• Targeted review and recovery plans for the online business in the United Kingdom and the Netherlands.

• Deployment of a single proprietary betting platform across most markets planned by end-2027; development teams in Europe are being reorganised to support the initiative. The company describes this as a proprietary betting platform and positions it as a strategic b2b capability.

• Review of market footprint and non-core assets, with special focus on the Payment and Services division; outcomes of the process will be announced by early 2027. The Payment and Services review links to the group's [payments](/payments) strategy.

• Additional draw-game promotions in Q4 and planned relaunches of Loto and EuroMillions in 2027.

• Introduction of a new €10 instant-win game and enhancements to the digital lottery offering planned for 2027.

The company is maintaining strict cost controls and continues to target a recurring EBITDA margin around 23%. The group also reiterated its goal of increasing the dividend annually, with a payout policy of at least 75% of adjusted net income.

Timing and further communications

FDJ United has scheduled full-year 2026 results for 18 February 2027. In the documentation the company emphasised that the technology and product restructuring measures aim to restore growth in the coming years, and that the review of non-core assets will conclude in early 2027.

The group's note also includes a call for heightened monitoring of lottery jackpot dynamics as a key variable for revenue recovery in 2027.

Investor FAQ included in the group's documents

The company added a frequently asked questions section for investors summarising the reasons for the cut and the lines of action. Operational and portfolio actions include development team reorganisations and reviews of the Payment and Services unit.