38 PUBLIC GAMING INTERNATIONAL • NOVEMBER/DECEMBER 2025 Following through on those commitments demonstrates your ability to align shareholder value with broader societal and stakeholder interests. Stéphane Pallez: Yes, absolutely. And it should be no surprise. From the very beginning, we made clear to our shareholders that FDJ UNITED’s business and financial model is fully consistent with serving society’s interests while also delivering attractive dividends to shareholders. FDJ UNITED embodies the ethos of a 21st-century enterprise: financially strong, socially responsible, and convinced that long-term success depends on aligning shareholder value with service to society. We made sure that Kindred’s teams share this vision, particularly in terms of commitment to responsible gaming. Today, we are committed to further developing FDJ UNITED’s positive impact on society and serving our shareholders at the same time. The transformational impact of FDJ’s 2019 IPO A common rationale for an IPO is to raise capital for an ambitious growth plan. What was the purpose of FDJ’s IPO? Stéphane Pallez: For us, it was not about raising capital in the short term. FDJ was in a very strong financial position: very low debt, high reserves, and robust cash generation. There was no pressing need for new capital. The IPO was therefore initiated because the French state had decided to sell the majority of its shares through our IPO to accompany the transformation of our business. The aim was also to use this opportunity to give French individual shareholders access to one of France’s most iconic companies and create a new interest for investing in the stock market. Indeed, the IPO was a huge success. There was particularly high demand from individuals to become shareholders of FDJ. Today, 18% of our shares are held by individual investors (i.e. not institutional investors) which is very high by French market standards. Of course, the IPO also delivered other benefits. Becoming a listed company accelerated our technological, organizational, and cultural transformation. It made us even more effective in operational execution, innovation, and ultimately more valuable to our shareholders. Of course, FDJ was already operating with high standards before the IPO. But, as a listed company, we are now held accountable to the highest standards of transparency, financial discipline, and integrity— on top of the high standards we already adhered to as a state-owned operator. Wow. I wouldn’t wish those extra layers of oversight on anyone! Stéphane Pallez: There is definitely more oversight and a broader, more diverse set of shareholders and stakeholders. We see that as a positive asset. Accountability across different interest groups only makes us stronger. The operator of the 21st century must expect to be held to higher standards of transparency, integrity, and operational excellence. We are embracing this opportunity to constantly challenge ourselves to lead the way. Being a public company also requires more frequent and intensive communication with shareholders than we were accustomed to as a state lottery. We used this opportunity to explain our mission and commitments more deeply, connect with our shareholders and the general public more often, and reinforce trust in our purpose and model. The IPO gave us a stage to tell our story: who we are, what we do, what our values are, and how we combine business with societal purpose. The result has been greater visibility to articulate our goals, our strategy, and our values. And that in itself was a major step forward for the company. I hadn’t thought of it that way—that diversifying your stakeholder base and embracing new accountability actually strengthens the company. It’s a powerful vision, an uncompromising commitment to excellence. Stéphane Pallez: And a powerful engine for continuous investment in sustainable growth! Today FDJ UNITED is organized around two major business units which are our two main engines for profitable growth. First, our French activities, based on our exclusive rights to offline and online lottery, and on sports betting at points of sale. Secondly, online betting and gaming, now a European-scale business. Beyond these two pillars, we have two additional areas of business development to fuel and enrich our future growth. One is international lottery. In 2023, we acquired Premier Lotteries Ireland (PLI), operator of the National Lottery in Ireland. This was a major milestone—the first time we took responsibility for running another lottery with exclusive rights in a European country. This business unit is not only responsible for PLI oversight and development but is also exploring other opportunities to leverage our technological, organizational, and industry expertise internationally. The last business unit is Payment and Services. The initiative to expand into payment and services grew directly out of our commitment to retailers in France. We asked how we could leverage our retail network to add value beyond lottery products. The answer was to offer simple payment services that attract customers into stores. So, customers can now pay several types of bills (rent, water bills, etc.) at a retail terminal in tobacconists and newsagents. Many like this option because it is trustworthy, convenient and local. This supports retailers, strengthens their relationship with customers, and diversifies FDJ UNITED’s business into proximity services. This kind of entrepreneurial thinking is part of our evolution as a listed company. It encourages us to look beyond our core business, innovate and explore new routes to generate long-term value and positive social impact. Hence, creativity and entrepreneurial drive as an enterprise-wide mindset. Stéphane Pallez: Exactly. That is why, for instance, we are now investing in training all our employees in artificial intelligence. AI is already essential in CRM and PAM, and as our scale grows, it will help us deliver personalization for clients, operational efficiency in our services, and value across all business areas. Customers are becoming accustomed to AI-enabled services, and they will expect it everywhere. For FDJ UNITED, AI is not optional. It is a vital part of our future as an innovative company in constant transformation. n FDJ UNITED’s transformation story: a game changer — continued from page 12
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