OPAP Reports Surge in Earnings and Net Gains in Third Quarter 2021

Sazka Group’s subsidiary, OPAP, witnessed a surge in both earnings and net gains during the third quarter of 2021, outperforming the same period in the previous year. This upward trend was propelled by robust performance in athletic wagering and virtual gaming ventures.

OPAP’s third-quarter earnings reached €470.2 million (£395 million/$528.8 million), marking a 20.3% increase compared to €391 million in the third quarter of 2020.

Throughout the period, lotteries remained the primary revenue generator for OPAP, contributing €178.4 million, with 97.7% originating from retail channels.

Athletic wagering revenue experienced a significant year-on-year surge of 39.1%, reaching €141.4 million, fueled by a robust online contribution, as described by OPAP. Online wagering accounted for 29.8% of all betting revenue in the third quarter, compared to a mere 3.9% a year prior.

Video lottery terminal (VLT) revenue rose by 5.4% to €84.4 million, despite restrictions on machine accessibility commencing in mid-September due to Greece’s COVID-19 measures. However, instant and passive income declined by 11.2% to €24.1 million as restrictions limited player access.

Virtual casinos witnessed the most substantial growth during the period, with revenue skyrocketing to €42 million, reflecting the contribution from OPAP’s enhanced stake in Stoiximan.

During the eleventh month of 2020, OPAP expanded its ownership in Stoiximan Group’s Greek and Cypriot ventures to 84.48 percent.

Concerning expenditures, operational expenses surged by 62.1 percent to €93.6 million, driven by increases in personnel, promotional efforts, and other operational outlays. However, the rise in revenue led to a 66.7 percent growth in earnings before interest, taxes, depreciation, and amortization (EBITDA), reaching €175 million.

Depreciation, amortization, and impairment charges amounted to €42 million during the three-month period, and there were also €9.6 million in financial costs, resulting in a pre-tax profit of €123.5 million, an 80.6 percent year-over-year increase.

OPAP paid €27.5 million in taxes during the quarter, leading to a net profit of €96 million, an 83.6 percent increase from €52.3 million in the third quarter of 2020.

OPAP’s chief executive officer, Jan Karas, stated, “OPAP’s third-quarter outcomes demonstrate our capacity to maintain robust financial performance while implementing key initiatives of our ‘Fast Forward Strategy.'” “The strength of the retail sector and persistent online growth, clearly benefiting from Stoiximan’s contribution, are the primary driving forces.”

“In this three-month period, we leveraged our recently introduced loyalty program, which is crucial for further digitizing our offerings. We are pleased to observe the positive impact of our loyalty program, which has been well-received by our customers and partners.”

“Despite these positive developments, we remain dedicated to providing a more engaging customer experience across all channels to propel OPAP’s long-term growth.”

During the initial nine months concluding on September 30th, OPAP’s income saw a 15.7% surge compared to the same period last year, reaching €1.04 billion. This upward trend was observed across all operational divisions.

Operational expenditures saw a significant rise of 47.2%, reaching €268.7 million. However, the substantial revenue growth resulted in a corresponding 83.0% increase in EBITDA, reaching €379.9 million.

After accounting for €108.5 million in depreciation, amortization, and impairment charges, along with €31.1 million in financing expenses, the pre-tax profit amounted to €240.4 million, marking a 157.7% year-over-year increase.

Tax obligations for the period totaled €60.8 million, leading to a net profit of €179.6 million for OPAP in the current year, representing a 155.1% year-on-year growth.

Sign up for the iGaming newsletter.