FDJ United cuts 2026 targets again as Q3 revenue falls 8.1%

Fewer big EuroMillions jackpots, high payouts to retail sports bettors, and €62 million in extra gaming taxes weighed on the group’s nine-month figures.

FDJ United has lowered its 2026 targets for the third time this year after third-quarter revenue fell 8.1% to €794 million. The French group blamed fewer big EuroMillions jackpots, unusually high winnings for sports bettors, weaker footfall at its French points of sale, and higher gaming taxes.

Q3 and nine-month figures

FDJ United published its results to end-September on 21 October. Over the first nine months of 2026, revenue fell 5.6% to €2.58 billion and gross gaming revenue (GGR) dropped 2.8% to €6.26 billion. The company said more than two percentage points of the revenue decline came from gaming tax increases.

The third quarter was weaker than the first half. In Q3, revenue fell 8.1% and GGR fell 6.1%, compared with declines of 4.5% and 1.3% in H1.

What hit revenue

The group named four main factors.

• Fewer big jackpots. By the end of September, there had been 12 EuroMillions jackpots above €130 million, compared with 27 a year earlier. There had been one jackpot above €200 million, compared with 12. Draw-game revenue fell 12.2% over nine months and 17.3% in Q3.
• High sports betting payouts. Retail sports bettors won more than usual, particularly in Q3. The player payout ratio rose by more than 400 basis points to nearly 80%.
• Weaker footfall. Economic conditions in France reduced traffic at points of sale in Q2 and Q3.
• Higher taxes. Gaming tax increases cost the group €62 million. That was €28 million in the French lottery and retail sports betting business and €34 million in online betting and gaming.

Business unit performance

In the French lottery and retail sports betting unit, GGR fell 3.5% to €4,978 million and revenue fell 4.8% to €1,794 million. Excluding long EuroMillions cycles, lottery GGR was down 0.9%. Instant games held up better, with revenue up 0.3% over nine months and 1.1% in Q3.

Online betting and gaming GGR was almost flat, down 0.8% at €1,013 million. Revenue fell 8.2% to €619 million after the extra taxes. Outside the Netherlands and the UK, GGR rose 5.7% and revenue rose 0.8%, helped by France and Scandinavia. GGR fell 8.6% in the Netherlands and 24.4% in the UK, where FDJ United is running action plans to restore performance. The unit is also speeding up the rollout of a single proprietary sports betting platform, which it aims to use in most of its markets by the end of 2027.

International lottery revenue fell 4.7% to €118 million after the group ended some unprofitable B2B contracts. Premier Lotteries Ireland grew its revenue by 2.1%. Payment and services revenue was €44 million, down from €47 million.

2026 targets lowered again

FDJ United now expects a low-single-digit decline in GGR for 2026. It expects a mid-single-digit decline in revenue, including more than €70 million in additional gaming taxes. It says cost control will keep its recurring EBITDA margin at around 23%.

The group’s 2026 targets have moved lower with each update this year. They were set out in its February and April releases and its July results. 

Stéphane Pallez, chairwoman and chief executive officer of FDJ United, said: 

‘FDJ United’s performance at the end of September reflects factors inherent to the gaming sector, a decrease in traffic at points of sale against a backdrop of an unfavorable economic climate, as well as the expected increase in taxation.’

The group confirmed its target of an annual dividend increase, based on a payout ratio of at least 75% of adjusted net profit. It is also reviewing the markets of its online betting and gaming business and its non-core assets, particularly in payment and services. It will announce the conclusions by early 2027 at the latest.

Share price and analyst views

FDJ United released the figures after the Paris market closed on 21 October. The next day, its shares fell as low as €19.45 before closing down 2.09% at €20.57. The €19.45 low is now the bottom of the stock’s 52-week range, which tops out at €26.75.

Deutsche Bank cut its price target to €25.10 from €26.60 on 22 October and kept its hold rating. It was the fifth target cut by a major broker since FDJ United’s half-year results in July.

Of the 11 analysts tracked by Investing.com, two rate the stock a buy, seven a hold, and two a sell. Their average 12-month price target is €23.97, down from €26.02 on 5 October. Individual targets range from €19 to €39.

FDJ United will publish its full-year 2026 results on 18 February 2027.

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