With its Capital Markets Day coming to a close after around three hours, the inner mechanisms, machinations and mappings of FDJ United are now much clearer. The business, engorged by its €2.45bn acquisition of Kindred Group last year, has laid out its blueprint to becoming a true pan-European giant.
Aims for podium positions in seven European markets by 2028, along with 5% annual revenue growth, are certainly bullish. A rapid expansion in international lottery could act as a major cross-sell opportunity. Then there’s the tech, namely significant AI development and the ongoing progress with the in-house Kindred Sportsbook Platform (KSP).
“FDJ United has the ambition, the strategy, the plans and the teams to deliver an industry-leading performance,” announced CEO and chair Stéphane Pallez in her opening remarks. If the walk follows the talk, a new Leviathan may enter the arena.
Under the hood
In what was the most eye-opening and intriguing part of the marathon investor presentation, chief digital, data and AI officer Sébastien Rozanes gave perhaps the most in-depth, public disclosure of AI capabilities among operators articulated to date. Snippets from the likes of Lottomatica, DraftKings and ComeOn Group have come via earnings calls and press releases, yet Rozanes’ presentation showed the sheer scale of possibilities for operators by tapping into AI.
The former Carrefour head revealed the business has 300 staff working across AI and data, with more than 300 million analytic events being processed every day. The operator is also planning to train 100% of its staff in AI and data by the end of next year.
Day-to-day, in-house operations are also being supported by AI agents across multiple departments, which Rozanes said will allow employees to “boost productivity and refocus on high value tasks”.
On the customer-facing front, there is the expectation that half of all digital consumer interactions will be handled fully by AI within the next three years. CX will be boosted by a “virtual coach” giving real-time tips to FDJ United customers to help with their choices, via analysing historical sports data and displaying probabilities. Additionally, a “Netflix-style algorithm” will create “smarter, more tailored online navigation and game recommendations”.
Proprietary marketing tools have also been developed, which has accelerated campaign creation time from an average of two weeks to under 20 minutes. FDJ United also said it will plough a further €40m into AI startups to follow on from its existing €25m investment.
Rozanes added: “This investment strategy ensures we are constantly pushing the boundaries and exploring new frontiers. In summary, transforming together with AI is about more than just technology.
“It’s all about the people and building a stronger, more agile organisation where every employee is empowered and equipped with AI to contribute to our shared success.
“Our leadership is on board with this transformation journey and are ready to act. This is setting us up for a future where we lead in the industry, not just follow it.”
In-house rules
Another key tech talking point was the ongoing development of the KSP. What originally started being built before FDJ United snapped up Kindred, the plan was to go fully in-house to offer a differentiated and personalised product for consumers. This still remains in the offing, with the KSP having been rolled out for testing with Unibet in Estonia and also with the 32Red brand in the UK. The aim is for the proprietary product to be live in all markets by late 2026.
The online betting and gaming arm, which Kindred was folded into following the acquisition, comprises 11 brands, including flagship brand Unibet. There are also 3.8 million active users. So the transition is no small feat, but bosses are confident it will be worth it. It is also expected the KSP will drive market share, amid a wider in-house push. In-house-derived revenue is forecast to account for 60% of the unit by 2028.
Nils Andén, FDJ United’s chief online betting and gaming officer, said: “The KSP is already a strong functioning sportsbook, and we are improving it rapidly with more than 70 new features expected between now and the end of 2025. What’s more exciting is that we’ve had the opportunity, and we’re doing it, to build a true next-generation sportsbook without legacy that can really drive true differentiation.
“KSP will deliver a truly data-driven and personalised player experience using the latest technology and AI to ensure our customers get the exact events and rewards they want. It also has best-in-class trading and risk management tools to ensure we can run highly efficient real-time trading operations.”
Shifting brands
Staying with online betting and gaming, Andén revealed that 32Red would be repositioned as an international brand, branching out from its current UK and Ireland base. The first step will see 32Red deployed in Romania, before potential expansion across Europe. Sports betting brand Unibet and Maria Casino are the two international entities as it stands, with a host of local sites within the online portfolio.
Andén noted: “Another key growth driver is our broad brand portfolio that really allows us to maximise our addressable market proposition. Having this on one platform is a distinct advantage as it enables us to scale our winning formula across brands and rapidly deploy new brands.
“We will start capitalising on this by turning 32Red into a pan-European brand. Starting now by launching in Romania [we will be] offering a more internationally casino-focused brand to sit with the two brands we already operate in Romania – Unibet and Vlad Casino.
“This is a key benefit of having a strong diversified brand portfolio on a single platform and will drive further growth for the group.”
Look now, buy later
On the M&A front, after spending €2.45bn to acquire Kindred Group last year, the business could be forgiven for taking some time to embed the asset and look for synergies. And that appears to be the case, at least for the next six months. And given FDJ United’s historical appetite for inorganic growth – including snapping up Premier Lotteries Ireland (PLI) and ZEturf – there is the expectation the wallet will reopen soon.
CFO Pascal Chaffard said: “What is important for us is to do synergistic M&A on online betting and gaming. As we have [not completed] our migration to the single platform that will allow for strategic M&A, we will note do it. It will be somewhere in 2026 that we will begin to look again at what is possible. But it’s important to do it phase by phase.
“On international lottery, it’s a little bit different because we do not have this. We will begin to look at different potential options, but it will take some time to realise it. We are beginning to look at different potential [options] but doesn’t mean we will active it in the coming months.”
International superstars
One of the smaller business segments, international lottery encompasses Premier Lotteries Ireland, via which FDJ has the licence to run the national lottery through to 2034 on the Emerald Isle. Last year, GGR hit €367m. But sticking with just one outpost away from the operator’s French homeland is not on the docket. FDJ United aims to expand its international lottery presence rapidly, according to chief international lottery officer Giovanna D’Esposito. And given the global lottery market has some big players already, including Allwyn, IGT and Flutter – the company will have a fight on its hands.
But D’Esposito appeared confident, claiming that a combination of M&A and organic concession bids will help drive the business unit beyond Ireland. While no geographies were disclosed, a initial focus on penetration in Europe is looks to be on the table.
She said: “The opportunity landscape is much broader, and we are actively looking beyond Ireland. Our vision is to become a multi-jurisdictional lottery leader. We approach this with what we call ‘global focus, local fit’.
“First, we want to leverage our European foundation, where we already understand regulatory complexity and consumer behaviour. Second, we’ll approach our growth through models that adjusted to different markets. Third, we are looking to build strategic partnerships, both locally and in certain cases, across multiple jurisdictions.”
The post Five things we learned from FDJ United’s Capital Markets Day first appeared on EGR Intel.
News editor Joe Levy unpacks the key talking points from the operator’s mammoth presentation, including significant AI disclosures and expanding 32Red into new markets
The post Five things we learned from FDJ United’s Capital Markets Day first appeared on EGR Intel.