OPAP cites sports betting drop as revenue falls in first quarter

OPAP has highlighted a drop in sports betting activity as one of the main reasons behind a year-on-year decline in gross gaming revenue during the three months to March 31.

Gross gaming revenue in the first quarter amounted to €340.7 million ($379.3 million), which represents a fall of 4.4% on the €356.3 million achieved in the corresponding period last year.

Earnings before interest, tax, depreciation and amortisation (EBITDA) remained flat at €93 million, after OPAP said its management was able to optimise costs in the first three months of the year, while EBITDA margin was up to 27.3%.

Net profit fell 9% year-on-year to €52.8 million, while earnings per share were down 8.9% to €0.1658.

OPAP ended the quarter with a cash position of €343.2 million.

Kamil Ziegler, chairman and chief executive of OPAP, said: “As evident in official figures Q1 2016 was marked by persisting pressure on disposable income and private consumption, thus leading our games’ portfolio revenue to trend towards lower numbers on a year-on-year level.

“In addition, increased gross gaming revenue contribution of 35% carried a severe impact on our reported numbers despite our ongoing efforts related to cost optimisation, which would otherwise lead to stable operating profitability versus the same period last year.

“Having paid almost €2 billion in taxation in the last three years and with our tax base growing even further, we stay fully focused on our long-term plan that will benefit the Greek economy and society as a whole.”

Last week, OPAP revealed Damian Cope will replace Ziegler as chief executive of the company.

Related article: OPAP names Cope as CEO after management restructure