OPAP reports revenue and profitability growth in Q1

OPAP has cited the performances of both its betting and video lottery terminal businesses as among the main reasons behind year-on-year financial growth in the first quarter.

Gross gaming revenue during the three months to March 31 totalled €377.3m ($441.8m), up 5.1% on €358.9m in the corresponding quarter last year.

Net gaming revenue climbed 5.9% year-on-year to €253.1m, while the amount wagered by customers also increased by 2% to €1.08bn.

Gross profit from gaming operations was up 4.9% to €147.9m, while net profit jumped 20% to €39.9m.

OPAP also noted earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter increased 11.1% to €87.2m, with a higher margin of 23.1%.

Damian Cope, chief executive of OPAP, said: “Q1 was a strong quarter and demonstrated good growth in both revenues and profitability, as OPAP benefited from many of the investments made in 2017.

“Both our betting and VLT categories performed well and the new relationship with our agents also helped to realise tangible improvements.

“We continue to invest in the optimisation and modernisation of our retail estate network, with several hundred new OPAP stores opening during 2018.

“Our comprehensive technology transformation programme is also approaching the final phase as we plan for the completion of all our main retail platform migrations, plus our new online platform, by the end of Q3.

“The rollout of our new products, notably VLTs and SSBTs, continues at pace and is helping to build a more balanced product portfolio.

“However externally we still see that the macroeconomic challenges in Greece continue to affect the disposable income of our many loyal customers.”

Cope added: “Looking ahead, we have a particularly busy few months in front of us, including the World Cup in Russia next month, and the OPAP team remains focused on meeting our objectives within the delivery of our 2020 Vision.”

Related article: OPAP profits hit by rising costs in 2017