France's FDJ United H1 revenue falls, reports net loss
France's FDJ United H1 revenue falls, reports net loss
Overview
France betting and gaming group's H1 revenue fell 4.5% yr/yr, missing analyst expectations
Adjusted net profit dropped 19%, impacted by higher taxes and lower lottery jackpots
Company targets stable GGR and low single-digit revenue decline for 2026
Outlook
FDJ UNITED targets stable GGR and a low single-digit decline in revenue for 2026
Company confirms recurring EBITDA margin target between 23% and 24% for 2026
FDJ UNITED expects an annual dividend increase, payout ratio at least 75% of adjusted net profit
Result Drivers
HIGHER GAMING TAXES - Co said revenue and recurring EBITDA were reduced by increased gaming taxes, particularly in France, the UK, the Netherlands, and Romania
LOTTERY JACKPOT SHORTFALL - Lottery underperformance attributed to fewer and smaller major Euromillions jackpots vs 2025
HEATWAVE IMPACT - Lower traffic at French points of sale, largely due to exceptional heatwaves, weighed on lottery revenue
Company press release: ID:nBwKpbHYa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| EUR 1.78 bln | EUR 1.81 bln (2 Analysts) |
H1 Net Loss |
| EUR 16 mln |
|
H1 Adjusted EBITDA |
| EUR 404 mln |
|
H1 Recurring Operating Profit |
| EUR 229 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the casinos & gaming peer group is "buy."
Wall Street's median 12-month price target for FDJ United is €26.50, about 15.9% above its July 28 closing price of €22.86
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago
Reuters Recommended Reads
July 29 - France's Banijay H1 revenue rises on sports betting, gaming growth
July 28 - BetMGM cuts outlook as prediction market competition grows
July 28 - Caesars Entertainment Q2 revenue slightly beats estimates on regional growth
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)