Banijay Group Grows Amid French Tax Pressure
Banijay Group delivered a robust Q1 2025 performance, posting an 18.2% increase in revenue driven by sportsbook and poker growth. The company also saw a 33% rise in unique active players. However, a new tax policy in France is expected to impact profitability in the second half of the year, raising questions about the competitiveness of the domestic market.
Continued Momentum in Online Betting and Gaming
In Q1 2025, Banijay Group reported €381 million in revenue, marking an 18.2% increase year-over-year. Sportsbook remained the largest contributor with €296 million (+19.5%), followed by casino at €56 million (+9.2%), poker at €24 million (+25.0%), and horse racing at €5.5 million (+21.6%).
The company’s user base also grew significantly. Unique Active Players rose by 33% compared to the previous year. Banijay attributed this growth to the stability of its sportsbook platform, which maintained 100% uptime during key events like the UEFA Champions League multiplex on January 29. It was the only app in France to do so.
Product Innovation and Cross-Selling Strategy
Banijay continues to enhance its product offering. In Q1 2025, it became the first operator in France to launch a “bet insurance” feature, allowing users to secure parts of their combo bets. Its poker business also benefited from the launch of a proprietary platform in late 2024, developed in-house using advanced technologies.
Cross-selling between products proved effective, further boosting performance across the board. The company reports that 99% of its gaming revenue in Q1 came from locally regulated markets, in line with its strategic commitment to compliance.
Rising Taxes in France to Affect Earnings
While Banijay Group expects to maintain double-digit EBITDA growth in 2025, a major challenge looms on the horizon. As part of France’s Social Security Financing Act, a new tax regime will come into effect on July 1, 2025.
The law raises the public levy on online sports betting from 54.9% to 59.3% of revenue (after bonuses) and increases the rate on poker from 0.2% of stakes to 10% of revenue. Additionally, a 15% tax will apply to advertising and promotional campaigns, excluding sports sponsorships. Banijay anticipates a €20 million reduction in its 2025 adjusted EBITDA due to these changes. The group considers the new tax framework anti-competitive and plans to challenge it before the relevant authorities.
Q1 2025 Financial Performance
Banijay Group adjusted EBITDA grew by 20.9% year-over-year, reaching €102 million, with a margin of 26.8%—the highest among Banijay’s business segments. Free cash flow increased by 21.7% to €93 million. However, adjusted operating free cash flow fell by 25% due to a €29 million shift in working capital, reflecting seasonal factors. Income tax paid in the quarter was €7.3 million, slightly below the prior year.