OPAP profits fall after tough Q3
Gambling monopoly cites lower revenues and increased sports betting payouts for drop in profits.
A fall in revenues saw OPAP suffer a 16% drop in third-quarter profits, the Greek gambling monopoly has announced in its financial results for the three months ended 30 September 2012.
The operator blamed the 11.3% decline in revenues to 891.3m compared to Q3 2011 for the results, along with tough economic conditions and increased payouts on its Stihima sports betting service, while EBITDA fell by some 14.4% to 155m in Q3, compared to 181.1m in the same period last year.
The results are the first since the Greek government announced plans to amend the country’s gambling tax model, which will see a new 30% levy on gross earnings from all OPAP’s games and a flat 10% rate on all player winnings from 1 January 2013.
When the changes were announced in September the operator’s share price fell by almost a fifth.
However OPAP’s chairman and CEO Constantinos Louropoulos said the clarification of taxes would help the operator in the long term, saying: “Q3 2012 was decisive for OPAP, as it clarified the tax framework for the future. We now have a clear basis to plan our operations in a solid and business responsive manner. OPAP contributed to the illegal gambling fight in Greece, protecting both the company’s and consumers’ rights.”
The Greek government currently holds a 33% share in OPAP, which is the subject of an eight-way bidding war after it put the stake up for sale earlier this year.
Potential suitors include a consortium involving Playtech and German gaming machine manufacturer Gauselmann, and Fosun International, a Chinese business conglomerate.
Analysts have valued the stake at close to 1bn given the operator’s market dominance and proposed plans to enter other regulated markets and diversify its offering into online gaming in the near future.
GTECH G2 won the race to act as IT provider for OPAP as the Greek monopoly takes its first step into online betting in 2013, with negotiations over the terms of the contract currently ongoing.