Greek operator OPAP reported revenue of €393.6m (£335.2m/$433.5m) for the third quarter of 2019, a 6.7% year-on-year increase.
OPAP’s €393.6m in revenue came on €1.08bn worth of wagers, a 3.4% increase from 2018. After paying €188.5m in GGR contributions and other levies and duties, OPAP was left with net gaming revenue of €265.1m, up 7.1%.
The operator paid €93.6m in agents’ commissions and €16.8m, 43.9% more than in 2018, in other net gaming revenue-based commissions.
Other operating income rose 9.9% to €32.2m while other operating costs rose 4.6% to €23.1m. The majority of this came from revenues from prepaid cards and mobile top-ups, at €24.6m. A further €1.4m came from income from IT services while the remainder came from other sources.
OPAP’s payroll expenses increased 6.1% year-on-year to €19.7m.Wages and salaries made up €15.6m of this total, while social security payments came to €2.8m, termination payments from a voluntary leave scheme that took place the first half of 2019 totalled €466,000 and benefit plans came to €417,000.
Marketing expenses rose 28.7% to €12.9m. Sponsorship expenses came to €2.5m, up 44.6%, while CSR costs totalled €1.5m, down 8.3%. Advertising costs came to €8.9m, up 33.7%.
Other operating expenses declined 20.0%, however, to €29.6m. IT-related costs came to €7.3m while utilities and telecommunication expenses were €3.6m. Rental costs were €402,000 while other sources made up the remainder of these expenses.
This left profit before interest, tax, depreciation and amortisation of €101.6m, up 16.5%. After depreciation costs of €28.6m, up 17.7%, OPAP was left with a profit of €73.0m from operating activities, a 16.1% increase.
OPAP’s finance income increased 85% to €642,000, while finance costs increased 11.4% to €7.2m.
The operator made a further €1.9m through its share of companies in which it had a voting stake but did not control, for a pre-tax profit of €68.3m, up 20.4%.
OPAP paid €19.4m in tax, up 12.4%, for an overall profit of €49.0m, up 23.9%.
In September, the Greek Council of State, Greece's supreme administrative court, revoked OPAP’s online sports betting license after Austrian operator Goalbet argued that OPAP had never been asked to meet the conditions necessary for the license. OPAP said in its results the financial impact of this would be limited as online betting makes up less than 1% of its revenue, but added that it is “evaluating how to pursue the protection of its interests by all legal means.”
A series of online gambling reforms came into effect in greece in October. The reforms include a €3m licence fee and a 35% gross revenue tax for licensees.
Also in October, Czech lottery group Sazka Group increased its stake in OPAP to almost 40% after the completion of an offer period during which it attempted to acquire all of OPAP's outstanding shares.