OPAP sees VLTs growth offset declines in other verticals in Q3

OPAP sees VLTs growth offset declines in other verticals in Q3

Wednesday, November 28, 2018 Posted by News Team
Greece
CEO Damian Cope says results show company's "steady progress"

Greek gaming operator OPAP has credited its video lottery terminal business for helping the business to a 3.2% increase in revenue for the third quarter of 2018. 

Amounts wagered fell 3.9% year-on-year to €1.0bn, though revenue climbed to €368.9m. This was largely down to VLT revenue jumping to €50.8m, offsetting declines in sports betting, lotteries and instant win games. 

Lottery revenue fell to €189.6m, with sports betting down 13.2% at €97.5m, and instant win revenue declined to €31.0m. 

This contributed to sales agents’ commission falling marginally to €90.3m, though other commission paid out rose to €11.3m. Marketing expenses were down 10.9% year-on-year at €10.4m, while other operating expenses rose to €37.0m. 

This led to EBTIDA falling to €87.2m, with the company posting a profit after tax of €39.1m, down 10.1% from Q3 2017. 

However, the company reported a 5.8% rise in gross gaming revenue to €1.1bn for the first nine months of the year, and profit for the period growing to €105.2m. 

OPAP chief executive Damian Cope said the results showed the business making steady progress.

“Despite some unfavourable sports results, including the World Cup Final match itself, and the ongoing macroeconomic challenges, the OPAP team delivered strong like-for-like EBITDA growth, plus year on year revenue growth for the fifth quarter in a row,” he said.

“Our VLTs operations once again increased their contribution while we continue to maintain a close control on costs across the company.”

Looking at the early activity in the fourth quarter of the year, Cope said OPAP had enhanced its retail offering with the launch of new lottery and betting products, which had been well received by customers. 

“As we approach the seasonally busiest period of the year we remain confident in meeting both our own expectations and the long-term ambition of establishing OPAP as a world class gaming entertainment company,” Cope added.

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