Home > Finance > Quarterly results > OPAP hails commercial strategy as revenue rises 15.4% in Q1

OPAP hails commercial strategy as revenue rises 15.4% in Q1

| By Robert Fletcher
Greek gambling group OPAP said successful commercial activities helped drive year-on-year growth across retail and online in the three months ending 31 March, with total revenue rising 15.4% as a result.

Revenue was higher across all areas of OPAP’s business in Q1, with the operator reporting double-digit percentage growth in each segment.

Growth within its online casino business was highest, with revenue up by 32.4%, but its commercial initiatives also drove revenue up in other core areas.

“After an impressive Q4 2022, OPAP started 2023 strongly, posting solid organic growth,” OPAP chief executive Jan Karas said. “The significant profitability reported in Q1 2023 reflects our compelling customer proposition, as well as our enhanced operational efficiency.

“Overall, major progress has been made across all pillars of OPAP’s Fast Forward business strategy. Among other things, we have further improved our offering and upgraded customer experience.

“The revamped Pamestoixima.gr sportsbook delivers an attractive offering, resulting in boosted customer engagement. Additionally, our newly launched ilottery platform, Opaponline.gr, strengthens our digital footprint, allowing OPAP to provide the most comprehensive online proposition in the market and offer more entertainment to its customers. 

“Moreover, OPAP Store App continues to bear fruit, showcasing the tangible impact of our initiatives to digitalise the retail customer journey.”

Revenue and profit growth

Looking at OPAP in Q1, revenue for the group was 15.4% higher year-on-year at €527.4m (£458.3m/$566.2m), compared to €457.0m last year.

Lottery remained its primary source of revenue at €188.7m, a rise of 11.0% on the back of a stronger Kino performance and Tzoker favourable jackpot rollovers, supported by targeted product initiatives.

Betting revenue jumped 10.5% to €168.9m, driven by growth and contribution of virtuals and its Powerspin offering, alongside increased online demand.

Video lottery terminal (VLT) revenue increased by 21.7% to €84.4m, aided by commercial initiatives. Instant and passive revenue also climbed 29.8% to €30.5m following growth of its customer base and successful product activations.

In terms of online casino, revenue increased 32.4% to €54.9m on the back of higher player engagement levels and spending.

Turning to costs, gaming revenue related expenses were up 17.7% to €145.4m, payroll costs rose 9.4% to €22.1m and marketing spend climbed by 18.6% to €27.6m. However, other operating costs were cut by 13.1% to €39.2m.

OPAP also noted €32.2m in depreciation and amortisation, as well as €3.1m in net financial costs. This left a pre-tax profit of €40.5m, up 36.8% year-on-year.

The group paid €40.5m in income tax and, after taking away €2.7m in profit attributable to non-controlling interest, net profit for the group was €118.0m, a rise of 33.6%. In addition, adjusted EBITDA jumped 16.4% to €196.5m.

“Looking ahead, we remain well positioned for the next chapters of our growth story and ready to ensure that OPAP is fully leveraging market opportunities, while meeting its commitments vis-à-vis sustainability and giving back to society,” Karas said.

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