FDJ rules out UK exit for Unibet amid turnaround plan

FDJ United has ruled out withdrawing its Unibet brand from the UK. This comes despite a sharp drop in revenues and mounting regulatory pressure. The operator’s newly appointed gaming and betting chief, Pascal Chaffard, said the focus is now on fixing internal inefficiencies rather than exiting the market. The comments came alongside FDJ’s Q1 results. These showed significant declines in the UK and Netherlands, even as group-wide performance remained broadly stable.

FDJ stands firm on UK despite revenue drop

FDJ has confirmed it will not exit the UK market. This was said even as its Unibet brand faces growing pressure from tax changes and declining performance.

During its Q1 earnings call, the operator revealed that Kindred UK gross gaming revenue (GGR) fell 24.1% year-on-year. The decline comes ahead of further strain from the UK’s Remote Gaming Duty (RGD). This figure rose from 21% to 40% of GGR in April.

Despite this, Pascal Chaffard insisted the UK remains viable. He noted that FDJ continues to operate profitably in the market, albeit with a low single-digit market share.

He said the company has no intention of withdrawing. He added that the priority is to address operational shortcomings rather than retreat.

Q1 results highlight pressure in key markets

FDJ’s Q1 results pointed to challenges across its online betting and gaming division. This includes its Kindred operations. Group GGR edged up 1% to €2.175 billion. Revenue dropped 3% to €895 million. Within online betting and gaming, GGR declined 1% and revenue dropped 8%.

Performance in the UK and Netherlands had a big impact on results. Both markets have recently introduced higher gambling taxes, impacting profitability and growth. Excluding these two regions, online betting and gaming GGR rose 6%. This suggests there is strength in other markets.

By the numbers

Turnaround plan centres on internal collaboration

Chaffard outlined a clear plan to improve performance in the UK, centred on better coordination between departments. He said teams across marketing, product, responsible gaming and anti-money laundering had previously worked in silos. This had limited the effectiveness of initiatives and slowed decision-making.

To address this, FDJ has introduced “targeted task forces” in both the UK and the Netherlands. These groups aim to bring together specialists from across the business to align strategy and execution.

Chaffard described the approach as getting teams “around the same table” to ensure decisions are informed by shared data and objectives.

Fix expected within ‘some quarters’, not years

FDJ does not expect the turnaround to take years, according to Chaffard.

He said the issues in the UK are not structural, but instead relate to how the business operates internally. As a result, improvements could be delivered within “some quarters”.

While he acknowledged the challenges of balancing compliance with growth, he pointed out that competitors have managed to do so successfully.

The focus now is on refining execution and using data more effectively to guide decisions. For FDJ, staying in the UK is not in question. The task is to make the model work under tighter regulatory conditions.