(AsiaGameHub) –   FDJ United has pledged to reverse its fortunes in the UK and Netherlands, following ongoing tax-related challenges that impacted its Q1 performance.

The group’s Q1 2026 earnings, published on Tuesday, showed a 1% year-over-year rise in GGR to €2.175 billion, though revenue dropped 3% to €895 million—held back by a €24 million hit from gaming taxes.

FDJ’s online betting and gaming division, which comprises its Kindred operations, recorded a 1% decline in GGR to €342 million, with revenue falling 8% to €213 million.

However, if we exclude the UK and Netherlands—where gambling tax rates were increased in 2025 and 2026—FDJ’s Q1 GGR from its online betting and gaming division climbed 6%, and revenue only dipped by 1%.

Kindred’s UK revenue fell by 24.1%. Over in the Netherlands, revenue dropped 19.9%—though FDJ pointed out this was a “notable improvement” compared to the 42.1% decline seen in FY2025.

The operator has already initiated measures to strengthen its standing in these critical markets, including updating its betting platform. In February, Pascal Chaffard moved from his role as CFO to lead the online gaming and betting division, replacing Kindred CEO Nils Andén, who departed to “pursue new opportunities”.

On Tuesday, FDJ revealed that Dan Lévy—previously with Ipsos—would take over Chaffard’s former position as CFO.

The company stated that its new management team is “fully dedicated” to reviving the online betting and gaming division’s performance, particularly in the UK and Netherlands.

FDJ cuts FY26 guidance

In FY2025, FDJ saw year-over-year declines across most of its business units, as the company was significantly impacted by higher taxes.

Chairwoman and CEO Stéphane Pallez once more identified tax increases as an ongoing challenge.

“In a landscape still influenced by tax hikes and stricter gaming regulations, the group is intensifying its focus on operational efficiency, synergies, and financial discipline. Our goal is to return to sustainable, value-generating growth starting in the second half of the year, for the benefit of all our stakeholders,” Pallez stated.

Based on its Q1 results, FDJ now anticipates a slight rise in GGR for 2026, but also forecasts a small drop in revenue due to additional annual gaming tax increases totaling around €90 million.

The company’s recurring EBITDA margin is projected to range from 23% to 24%, a slight decrease from the earlier FY26 target of 24.5%.

FDJ sees mixed Q1 performance in France

FDJ’s French lottery and retail sports betting division also delivered mixed outcomes.

The division’s GGR remained steady at €1.74 billion, but revenue fell another 2% to €627 million, affected by a €15 million hit from higher taxes.

FDJ attributed the French performance to temporary factors at the end of Q1, including less appealing sports events and a high payout ratio for retail sports betting.

France-based point-of-sale revenue decreased by 3% to €546 million, while online lottery revenue inched up by 1% to €81 million. 

Even though its French lottery and retail sports betting division saw no growth, FDJ still expects annual revenue growth for this segment as it navigates past the temporary issues faced in Q1.