OPAP revenues up 5% in strongest Q1 since 2010
Operator hails “encouraging performance” ahead of Stoximan acquisition
Greek operator OPAP has reported a 5% year-on-year rise in its gross gaming revenues for the first quarter of 2019, with Q1 revenues the strongest since 2010 at €396m (£351m).
Gross profits from gaming operations grew by 5.5% during the period, rising to €156.1m, while company EBITDA increased by 28% to €111.6m IN Q1 2019.
The strongest area of growth for the operator during Q1 was in video lottery terminals (VLTs), where revenues jumped by 59% to €69m, while lottery revenues increased more modestly by 1.6% to €191.7m during the same period.
Revenues from OPAP’s sports betting operations fell 5.3% to €101.7m during Q1 2019, while its so-called instants and passives business revenues fell by 10.8% y-o-y to €33.6m.
Company net profits increased by 43.5% y-o-y during the quarter to €57.2m, with net debts amounting to €410.5m (£363m).
Operating expenses fell by 4.9% year-on-year during the quarter to €64.1m, thanks to what the company called “sustained cost efficiencies mostly stemming from our IT transformation.”
OPAP CEO Damian Cope hailed the positive start to 2019, highlighting encouraging performance driven “by the continuing growth of the contribution from VLTs and better performances in both lottery and sports betting”.
“It is clear that the various investments made during the last few years are now delivering solid returns and demonstrating OPAP’s ability to generate profitable growth,” Cope added.
In addition to the financial results, Cope confirmed that OPAP’s 50% investment in rival operator Stoiximan, first announced in September 2018, is just awaiting final regulatory approvals before completion.
“Overall we remain positive about expectations for 2019 and confident in the ability of the OPAP Team to sustain the current positive momentum for the rest of the year,” Cope added.