FDJ UNITED: A Comprehensive Corporate Profile

Quick Facts / Company Snapshot

• Company Name: FDJ UNITED
• Establishment Origins: 1933 (National Lottery)
• Chief Executive Officer: Stéphane Pallez
• Headquarters: Boulogne-Billancourt, France
• Total Revenue (2024): €3,065 million
• Recurring EBITDA (2024): €792 million
• Net Profit (2024): €399 million
• Total Stakes (France, 2024): €22.7 billion
• Workforce: More than 5,000 employees
• Employee Nationalities: Over 70
• Active Players (Europe, 2024): Nearly 33 million
• Points of Sale (Total): Nearly 34,000
• Points of Sale (France): Nearly 29,000
• Global Presence: Around 15 locally regulated markets
• Key Acquisition (2024): Kindred Group
• Digital Revenue Share: 34% of total revenue
• International Revenue Share: 26% of total revenue
• Economic Contribution to France: €7 billion
• Jobs Sustained in France: 57,200
• Corporate Purpose slogan: Playful. Play fair. Play forward.

Company Overview

FDJ UNITED stands as one of Europe’s premier operators in the gaming and betting sector. Following a transformative period marked by significant international expansion, the Group has evolved from a predominantly French lottery operator into a diversified European champion. The organisation operates a vast portfolio of iconic brands across lottery, sports betting, and online gaming, distinguishing itself through a unique combination of exclusive rights activities and competitive market operations.

The Group’s identity underwent a major shift in 2024 with the adoption of the name FDJ UNITED. This rebranding reflects the unification of diverse entities—including the historical French lottery, Premier Lotteries Ireland, and the newly acquired Kindred Group—under a single banner. The “UNITED” designation emphasizes the collective spirit of over 5,000 employees from more than 70 nationalities working together to build a new European group founded on international excellence and diversity.

Central to FDJ UNITED’s business model is a commitment to responsibility and social contribution. The Group operates as a “contributive model,” where commercial success is intrinsically linked to positive societal impact. In France alone, the Group’s activities contributed approximately €7 billion to the national wealth in 2024, representing 0.25% of the country’s GDP. This model ensures that value created is redistributed among a wide range of stakeholders, including the state, local retailers, employees, and civil society causes.

The Group’s strategic ambition is to assert its leadership as a responsible gaming and betting operator on a European scale. This vision is supported by a dual focus on digital innovation and proximity to local communities. While rapidly digitising its offers—with online gaming revenue increasing threefold over five years—FDJ UNITED maintains deep roots in physical territories, boasting the most extensive local sales network in France.

Business Segments

FDJ UNITED organises its operations into four distinct business units (BUs) designed to structure its new activities in France and international markets. This operational model reflects the Group’s diversified profile and its presence in approximately 15 locally regulated markets.

French Lottery and Retail Sports Betting

This segment forms the historical core of the Group’s activities. It encompasses offline and online lottery games operated under exclusive rights in France, as well as sports betting conducted at physical points of sale.

• Operational Scope: Includes the management of iconic draw games and scratch card games distributed through a vast network of nearly 29,000 retailers across metropolitan France and overseas territories. It also covers the “ParionsSport Point de Vente” betting activity.
• Strategic Importance: This segment provides a solid financial foundation and maintains the Group’s essential link with local economies and the French distribution network.

Online Betting and Gaming

This business unit aggregates the Group’s activities that are open to competition. It targets markets where these activities are locally regulated, ensuring compliance and responsible operation.

• Operational Scope: The segment includes online sports betting, horse-race betting, poker, and casino games. Major brands operating within this perimeter include Unibet and the French online betting offers.
• Performance Context: The integration of Kindred has significantly bolstered this segment, bringing state-of-the-art technology and established positions in key European markets.
• Technological Focus: This segment leverages advanced platforms featuring machine-learning and automation to deliver customised player experiences.

International Lottery

Following the acquisition of Premier Lotteries Ireland (PLI) in 2023, FDJ UNITED established a dedicated unit for its international lottery operations.

• Operational Scope: This segment primarily encompasses the operations of the Irish National Lottery, which PLI holds the exclusive rights to operate until 2034.
• Mission: Similar to the French model, this segment focuses on raising funds for good causes, with €239 million allocated to over 4,500 charity and voluntary groups in Ireland in 2024.

Payment and Services

Diversification beyond gaming is a key strategic pillar, realised through the Payment & Services unit.

• Operational Scope: This unit includes the Nirio brand, a payment solution launched in 2023. Nirio allows customers to manage budgets, pay bills, and perform cash deposits and withdrawals at participating local retailers (bars, tobacconists, newsagents).
• Strategic Goal: This activity reinforces the Group’s proximity to local communities and generates new revenue streams for partner retailers.
• Revenue Contribution: Revenue from “Other activities,” which mainly comes from Payment & Services, stood at €113 million in 2024.
• Percentage of Total Revenue: Approximately 3.7% (Calculated based on €113m / €3,065m).

History and Evolution

The trajectory of FDJ UNITED is defined by a heritage of solidarity and a continuous drive for transformation.

1933: The Origins The Group traces its roots back to the creation of the French National Lottery in 1933. The lottery was originally established with a specific social mission: to provide aid and funding for soldiers who had suffered facial injuries during World War One, known as the “Gueules Cassées” (Broken Faces). This foundational purpose of aiding the community remains embedded in the Group’s DNA.

2019: Privatisation and Listing A pivotal moment in the company’s modern history occurred in November 2019 with the privatisation of La Française des Jeux and its listing on the Euronext Paris stock exchange. This event marked the beginning of a new phase of development, opening the capital to institutional and retail investors. Five years post-listing, the Group counts nearly 400,000 individual shareholders.

2023: Initial International Expansion The Group took its first major steps onto the international stage in 2023. This year saw the acquisition of Premier Lotteries Ireland (PLI), the operator of the Irish National Lottery, granting FDJ exclusive rights in Ireland until 2034. Additionally, the Group expanded its online diversification through the acquisition of ZEturf, adding horse-race betting to its portfolio.

2024: Change of Scale with Kindred October 2024 marked a decisive turning point with the finalisation of the acquisition of Kindred, a leading European online betting and gaming operator. This transaction, valued at nearly €2.5 billion, propelled the Group into the top tier of European operators. The acquisition expanded the workforce from 3,000 to over 5,000 and increased the share of international revenue from 4% to 26%. To symbolise this new dimension, the Group adopted the name FDJ UNITED.

Products and Services

FDJ UNITED offers a comprehensive suite of gaming, betting, and financial services designed to be entertaining, responsible, and accessible.

Lottery Games (France and Ireland)

The lottery portfolio includes both draw games and instant win (scratch) games, available online and through physical retail networks.

• Loto: The historic draw game in France, continuing to attract millions of players.
• Euromillions: A transnational European lottery game organised by 10 lotteries. Since its launch in 2004, it has created numerous millionaires, including a record €220 million win in French Polynesia.
• EuroDreams: A new draw game launched in 2023 offering an annuity-style prize of up to €20,000 a month for 30 years.
• Instant Games (Illiko): A diverse range of scratch cards including themes like “Cash,” “Mission Patrimoine,” and the biodiversity-focused “Mission Nature.”
• Irish National Lottery Games: Operated by PLI, these games support thousands of good causes across Ireland.

Sports Betting

The Group provides sports betting options across offline and online channels.

• ParionsSport Point de Vente: The exclusive offline sports betting offer in France, available at local points of sale.
• Online Sports Betting: A competitive digital offering available via dedicated platforms and mobile applications, enhanced by the technological capabilities of the newly acquired Kindred Group.

Online Gaming (Open to Competition)

In markets where regulations permit, the Group offers a wider variety of online gaming experiences.

• Poker: Online poker rooms available to players.
• Horse-Race Betting: Facilitated through the ZEturf acquisition, offering betting on equestrian events.
• Casino Games: Digital casino experiences offered in regulated international jurisdictions.

Payment and Services

• Nirio: An “all-in-one” budget management application. Services include:
  • Bill Payments: Paying rent, bills, or fines at local retail outlets.
  • Cash Management: Depositing or withdrawing cash at participating tobacconists and newsagents.
  • Nirio Premio: A complete budgeting solution enabling customers to open an account with a French IBAN and obtain a Visa card.

Brand Portfolio

FDJ UNITED manages a portfolio of powerful brands that enjoy high recognition and trust across Europe.

• FDJ: The corporate brand and the face of lottery games in France. It enjoys an aided awareness rate of 97% in France.
• Unibet: A flagship brand from the Kindred acquisition, recognized globally for online sports betting, casino, and poker. It is present in multiple key markets including the UK, France, and Belgium.
• Loto: An iconic French lottery brand synonymous with draw gaming.
• Euromillions: A leading European lottery brand offering substantial jackpots.
• 32Red: A prominent online casino brand operating primarily in the UK market.
• ParionsSport: The dedicated brand for sports betting in France, covering both retail and online segments.
• ZEturf: A specialist brand for online horse-race betting.
• Nirio: The growing brand for the Group’s payment and proximity services.
• Illiko: The umbrella brand for the Group’s extensive range of instant scratch games.
• Premier Lotteries Ireland (PLI): The operator brand for the Irish National Lottery.

Geographical Presence

The Group has significantly expanded its footprint, now operating in approximately 15 locally regulated markets. This expansion creates a balanced presence between France and the rest of Europe.

Revenue Breakdown by Region:

• France: Remains the primary market. €2.7 billion in revenue (approx. 88% of total revenue).
• International: Represents a growing share of the business. Post-acquisition analysis indicates that 26% of the Group’s revenue now comes from international business (up from 4% prior to Kindred).

Key Markets:

• France: The historic base with exclusive rights for lottery and retail betting, plus competitive online gaming. The network includes nearly 29,000 points of sale.
• Ireland: Exclusive operation of the National Lottery through PLI.
• United Kingdom: A major market for online betting and gaming brands like Unibet and 32Red.
• Sweden: A key market for Kindred’s online operations.
• Netherlands: A regulated market where the Group operates online gaming.
• Belgium: Presence in the regulated online gaming sector.
• Other Markets: Operations extend to Denmark, Estonia, Romania, Italy, Spain, Malta, and Australia (B2C).

Office Footprint: The Group maintains offices in strategic locations globally, including:

• France: Paris (Headquarters), Boulogne-Billancourt, Marseille, Limoges, Bordeaux, Papeete.
• Ireland: Dublin.
• United Kingdom: London.
• Malta: A key hub for international online operations.
• Other Locations: Stockholm, Copenhagen, Gibraltar, Madrid, Tallinn, Bangalore, Sydney, Darwin, Amsterdam, The Hague, Antwerp.

Financial Performance Analysis

In 2024, FDJ UNITED delivered a robust financial performance, characterized by growth in revenue and profitability, driven by both organic activities and external growth operations.

• Total Revenue: €3,065 million, representing an increase of 16.9% compared to €2,621 million in 2023.
• Recurring EBITDA: €792 million, up 20.6% from €657 million in 2023.
• Recurring EBITDA Margin: 25.8%, reflecting strong operational efficiency.
• Net Profit: €399 million, a decrease of 6.2% compared to €425 million in 2023.

Profit and Loss Analysis

• Revenue Growth: The 16.9% increase to €3,065 million underscores the successful integration of acquisitions and the sustained momentum of lottery and sports betting activities.
• EBITDA Performance: The recurring EBITDA reached €792 million. This growth demonstrates the Group’s ability to manage costs while expanding its operational scope.
• Net Profit Adjustments: While reported net profit was €399 million, the Adjusted Net Profit serves as a basis for dividend distribution. The adjusted profit corrects for specific items such as depreciation and amortisation related to exclusive rights (€18 million) and purchase price allocations.
• Dividend Policy: The Group maintains a generous redistribution policy, proposing a dividend of €2.05 per share for 2024, compared to €1.78 in 2023. This represents a payout ratio of 77% of adjusted net profit.

Balance Sheet Analysis

• Equity: Shareholder equity stood at €1,189 million at the end of 2024.
• Net Cash/Debt Position: The Group reported a net financial debt position of -€1,818 million in 2024. This contrasts with a positive net cash position of +€670 million in 2023. This significant shift reflects the financing of the Kindred acquisition (approx. €2.5 billion).
• Leverage: The financial leverage ratio (Net Financial Debt / Recurring EBITDA) is 1.87, indicating a manageable debt level relative to earnings.

Cash Flow Analysis

• EBITDA-to-Cash Conversion: The Group exhibits strong cash generation capabilities, with a recurring EBITDA-to-cash conversion rate of 89% in 2024. This is slightly lower than the 92% achieved in 2023 but remains a high standard of liquidity generation.
• Investments: Significant cash outflows were directed towards external growth, specifically the Kindred acquisition, marking a year of heavy investment for future scale.

Board of Directors and Leadership Team

The governance structure of FDJ UNITED is composed of a Board of Directors and an Executive Committee, both adapted to support the Group’s new scale and ambitions.

Executive Committee

The Executive Committee meets weekly to steer operational policies and strategy. Key members as of December 31, 2024, include:

• Stéphane Pallez: Chairwoman and Chief Executive Officer.
• Charles Lantieri: Deputy Chief Executive Officer and Chairman of the FDJ UNITED Foundation.
• Pascal Chaffard: Chief Financial Officer, Strategy and Performance leader.
• Nils Andén: Chief Online Betting and Gaming Officer.
• Giovanna d’Esposito: Chief International Lottery Officer.
• Patrick Buffard: Chief French Lottery and Retail Sports Betting Officer.
• Raphaël Botbol: Chief Payment and Services Officer, Innovation leader.
• Cécile Lagé: Chief Executive Advisor.
• Celia Verot: Chief Regulatory Officer.
• Vincent Perrotin: Chief Sustainability Officer.
• Sébastien Rozanes: Chief Digital, Data & AI Officer.
• Nathalie Le Garlantezec: Chief Communications Officer.
• Xavier Étienne: Chief Technology Officer.
• Valérie Berche: Chief Audit and Risks Officer.
• Dominique Cavalié: Chief Human Resources and Transformation Officer.
• Elisabeth Monégier du Sorbier: General Counsel and Secretary to the Board of Directors.

Board of Directors

The Board defines the strategic direction and oversees its implementation. It includes independent directors, representatives of the State, and employee representatives.

• Stéphane Pallez: Chairwoman and CEO.
• Philippe Lazare: Independent Lead Director, Chairman of the Governance, Nominations and Remuneration Committee.
• Xavier Girre: Independent Director, Chairman of the Audit and Risks Committee.
• Françoise Gri: Independent Director, Chairwoman of the CSR & Responsible Gaming Committee.
• Victor Richon: Director representing the French State.
• Didier Trutt: Director appointed on the proposal of the French State.
• Ghislaine Doukhan: Director appointed on the proposal of the French State.
• Florence Barjou: Independent Director (Permanent representative of Predica).
• Fabienne Dulac: Independent Director.
• Corinne Lejbowicz: Independent Director.
• Olivier Roussel: Permanent representative of the UBFT (Union of Facially Injured).
• Jacques Sonnet: Permanent representative of the FNAM (André Maginot National Federation).
• Agnès Lyon-Caen: Director representing employees.
• Didier Pitisi: Director representing employees.
• David Chianese: Director representing employee shareholders.

Subsidiaries, Associates, Joint Ventures

The Group operates through several key subsidiaries that manage specific segments of its business.

• Kindred Group: Acquired in 2024. A leading operator in online betting and gaming across Europe.
  • Contribution: Operates major brands like Unibet and 32Red.
  • Key Stat: Brought the share of digital revenue for the Group up to 34%.
• Premier Lotteries Ireland (PLI): Wholly owned subsidiary.
  • Contribution: Exclusive operator of the Irish National Lottery.
  • Performance: Remitted €239 million to good causes in 2024.
• ZEturf: Acquired in 2023.
  • Contribution: Specialises in online horse-race betting, diversifying the Group’s online portfolio.
• FDJ Services: Operates the Payment & Services activity.
  • Contribution: Manages the Nirio brand and network services.

Physical Properties

FDJ UNITED maintains a robust physical footprint that serves as the backbone of its “phygital” strategy.

• Retail Network (France): The Group relies on the most extensive local network in France, comprising nearly 29,000 points of sale. This network includes bars, tobacconists, and newsagents, serving as the primary distribution channel for lottery and sports betting.
• Retail Network (International): Through PLI, the Group also operates a significant retail network in Ireland.
• Offices:
  • Paris: Headquarters.
  • Boulogne-Billancourt: Corporate offices.
  • Dublin: New “Platinum” LEED certified premises for Premier Lotteries Ireland.
  • Malta & London: Key operational hubs for the Kindred subsidiary.
  • Regional Offices: Offices in major French cities including Marseille, Bordeaux, and Limoges ensure close proximity to the retail network.

Segment-wise Performance

• France (Lottery & Retail Betting): Continued to be the dominant revenue driver, generating €2.7 billion. This segment demonstrated resilience and sustained engagement from the player base.
• International & Online (Kindred, PLI, etc.): This segment experienced explosive growth due to acquisitions. The integration of Kindred in Q4 2024 contributed to raising the international revenue share to 26%.
• Payment & Services: Revenue reached €113 million, showing the potential of diversification efforts into transaction services.

Founders

The original founder of the modern Group’s predecessor was the French State, which established the National Lottery in 1933. The initiative was driven by the Gueules Cassées (Union of the Facially Injured) and the André Maginot National Federation, organisations representing World War I veterans. These associations remain shareholders and are represented on the Board of Directors today, preserving the historical link to the Group’s founding social purpose.

Shareholding Pattern

FDJ UNITED has a diverse shareholder base following its privatisation.

• French State: Remains a significant shareholder, ensuring the protection of public interests and regulation.
• Veterans’ Associations: The UBFT (Union des Blessés de la Face et de la Tête) and FNAM (Fédération Nationale André Maginot) hold stakes, honoring the Group’s origins.
• Individual Shareholders: Nearly 400,000 individual investors hold shares, many having acquired them during the 2019 privatisation.
• Employees: Employee shareholding is significant, with employees holding 4% of the Group’s share capital.
• Institutional Investors: A broad base of French and international institutional investors holds the remaining float.

Parent

FDJ UNITED operates as a public limited company (société anonyme). While it does not have a single corporate “parent” in the traditional sense of a holding conglomerate, the French State acts as a controlling shareholder with specific rights regarding the regulation of gaming activities and board representation. The State’s influence ensures that the Group adheres to strict standards regarding responsible gaming and contribution to public finances.

Investments and Capital Expenditure Plans

The Group’s investment strategy focuses on digital transformation, international expansion, and sustainability.

• Strategic Acquisitions: The primary capital expenditure in 2024 was the €2.5 billion acquisition of Kindred. This massive investment was aimed at acquiring technology, talent, and market share.
• Technology & Innovation: Continued investment in “state-of-the-art technological platforms” is a priority. This includes the development of new digital games and the enhancement of the sports betting platform.
• Sustainability: Investments are also directed towards environmental goals. For example, PLI’s move to a LEED Platinum building in Dublin reduces carbon footprint and operating costs.
• Responsibility: The Group dedicates 10% of its total advertising budget specifically to responsible gaming campaigns.

Future Strategy

FDJ UNITED has outlined a clear strategic roadmap centred on sustainable and profitable growth.

• International Leadership: The goal is to assert the Group’s status as a “European gaming and betting champion.” The strategy involves balancing core businesses with international expansion to diversify revenue sources.
• Digital Acceleration: Increasing the digitalisation of activities is a key objective. With digital revenue already at 34%, the Group plans to further develop its online portfolio and omni-channel experiences.
• Customer Experience: The integration of Artificial Intelligence (AI) and data analytics will be used to personalise player experiences and enhance player protection mechanisms.
• Sustainability: The Group aims to reduce Scopes 1, 2, and 3 greenhouse gas emissions by 42% by 2030.
• Responsible Gaming: FDJ UNITED aims to be a European reference in this area, leveraging Kindred’s expertise in detecting high-risk players.

Competitive Landscape

The gaming and betting sector is characterised by new competitive dynamics and the emergence of multi-market operators.

• Direct Competitors: The report mentions that the online sports betting, horse-race betting, and poker markets are “open to competition.”
• Market Position: FDJ UNITED is one of the Top 3 gaming and betting operators in Europe in terms of Net Gaming Revenue (NGR).
• Unique Selling Proposition: Unlike many pure-play online competitors, FDJ UNITED combines a dominant physical retail network with a robust digital offering, creating a unique “phygital” model.

Key Strengths

• Exclusive Rights: The Group holds a monopoly on lottery games and offline sports betting in France until 2044, providing secured and recurring cash flows.
• Extensive Network: A network of nearly 34,000 points of sale provides unmatched proximity to customers.
• Brand Power: Iconic brands like Loto and Euromillions enjoy near-universal awareness.
• Financial Robustness: High recurring EBITDA margins (25.8%) and strong cash conversion (89%) allow for significant investment and shareholder returns.
• Technological Expertise: With the acquisition of Kindred, the Group now possesses a proprietary, state-of-the-art sports betting platform and advanced digital capabilities.
• CSR Leadership: Consistently high ratings from non-financial rating agencies (MSCI, Moody’s, S&P, CDP) and a 100% score in The European Lotteries responsible gaming certification.

Key Challenges and Risks

• Regulatory Compliance: Operating in around 15 locally regulated markets requires navigating complex and diverging regulatory frameworks regarding taxation, advertising, and consumer protection.
• Responsible Gaming: As a leader, the Group faces high scrutiny regarding underage gambling and addiction. It must constantly invest in detection tools and prevention, such as the 3,500 calls made to high-risk players in 2024.
• Integration Risks: Merging the operations, cultures, and platforms of newly acquired entities like Kindred and PLI presents operational and human resources challenges.
• Cybersecurity: Managing over 20 billion transactions a year makes the Group a target. Ensuring the integrity of games and data protection is a critical ongoing challenge.
• Market Competition: The online segment faces intense competition from other international operators leveraging scale and technology.

Conclusion and Strategic Outlook

FDJ UNITED has successfully navigated a pivotal year in 2024, emerging as a transformed European giant. The acquisition of Kindred has fundamentally altered the Group’s profile, providing it with the critical mass, technological assets, and international footprint necessary to compete at the highest level.

Looking ahead, the Group is well-positioned to deliver on its promise of sustainable growth. By combining the stability of its exclusive rights activities in France with the dynamism of its competitive international operations, FDJ UNITED creates a balanced and resilient business model. The focus on “Playful. Play fair. Play forward.” encapsulates a strategy that harmonises commercial ambition with unwavering commitment to responsibility. With a robust financial structure, a talented workforce of over 5,000, and a clear strategic vision, FDJ UNITED is set to define the future of responsible gaming in Europe.

Official Site: www.fdj.com

Content is based on publicly available corporate filings, regulatory disclosures, annual reports, 10-K filings, Investor Relations materials, and direct mail communication with the company.