Stoiximan growth helps OPAP offset retail blues
OPAP SA has reported a ‘further solid trading period’, as online growth credited to its newly integrated Stoiximan assets have offset continued lottery and VLTs declines.
Publishing its nine-month management performance statement, the Athens-listed gambling group registered a 16% increase in corporate revenues to €1.04 billion (YTD2020: €898m).
A breakdown of unit performance saw OPAP’s betting division achieve a 55% increase in YTD revenues to €355 million (YTD2020: €228m – of which Stoiximan online sportsbook generated a €175 million contribution.
Further Stoiximan gains saw OPAP register a 3X jump in online casino revenues to €138 million (YTD2020: €42m).
Excluding Stoiximan contributions, OPAP acknowledged that group GGR performance had declined by 15% to YTD €763 million.
Comparative results saw OPAP’s VLT unit register revenues of €121 million down 26% on YTD 2020 results of €169 million – as the unit’s performance has been dragged down due to store closures and operating on fewer days.
Elsewhere, OPAP’s Lottery performance remains 16% behind 2020 comparatives, generating YTD sales of €365 million (YTD2020: €436m) – as unit performance was impaired by Greek winter COVID-19 retail restrictions.
OPAP remains positive on a lottery comeback as Q3 trading saw sales match 2020 comparatives of €179 million
Further metrics, saw the Greek gambling group track a 47% increase in operating expenses to €268 million – attributed to Stoiximan integration costs and a 76% increase in marketing expenditure to support its lottery re-openings and Euro 2020 campaigns
Of significance, OPAP governance underlined the firm’s improved operating profitability, which registered gross profits from gaming operations of €201 million (+37%).
OPAP’s YTD EBITDA stands at €380 million, up 83% on 2020 results of €207 million. Group earnings were significantly lifted by the extension of its Hellenic Lotteries concession agreement securing an extra income of €158 million.
Closing its management statement, OPAP YTD net profits have doubled to €178 million (YTD2020: €74) – boosted by Stoiximan contributions and Greece’s new nominal corporate tax rate set at 22%.
“OPAP’s Q3 results affirm our ability to sustain a strong financial performance while implementing key initiatives of our Fast Forward Strategy,” commented Group CEO Jana Karas.
“Retail resilience and continuing online growth, clearly aided by Stoiximan’s contribution, were the key drivers. During the quarter, we tapped the benefits of our recently launched loyalty program, which is key to further digitalising our offering.”
“We remain committed to delivering an even more entertaining customer experience across all our channels, so as to promote OPAP’s long-term growth.”