OPAP Sees Revenue Rise Driven by Online Casino and Lottery Growth

OPAP's online casino business propelled its revenue up by 4.2% year-on-year to €549.7m (£467.5m/$593.3m), with the Greek gambling group also noting continued success in its lottery division.

Gross gaming revenue (GGR) for Q1 significantly surpassed the €527.2m reported by OPAP during the same period last year. Net gaming revenue – calculated as GGR minus GGR contributions and other levies and duties – also saw a 3.6% increase, reaching €376.5m.

OPAP experienced higher revenue across three of its five core segments in Q1, with notable growth in the online casino business, where revenue surged by 29.1% to €12.9m. Lottery and video lottery terminal (VLT) revenues also saw increases, though the company reported declines in betting and instant and passive revenues.

OPAP CEO Jan Karas expressed satisfaction with the Q1 results, emphasizing the foundation it sets for growth in 2024. “OPAP reported solid performance and organic growth in Q1, driven by our focus on enhancing our proposition and promoting innovation, with online recording strong activity and retail further solidifying its position,” Karas said. “Looking ahead, we are focused on further upgrading our offering in every vertical and achieving progress in all pillars of OPAP’s Fast Forward business strategy.”

Breaking down the Q1 figures, the standout performance came from the online casino segment, with revenue climbing 29.1% to €70.9m. Despite being the smallest revenue source for OPAP, this segment's growth rate outpaced all others, attributed to higher player engagement and increased spending.

Lottery remains OPAP’s primary revenue source, generating €196.0m in Q1, up 3.9% from the previous year. This growth followed a revamp of the Lotto & Tzoker games late last year. Additionally, OPAP highlighted that Eurojackpot, launched in March this year, started promisingly and added incremental revenues.

In sports betting, revenue slightly declined by 0.2% to €168.5m during the quarter. Despite this minor dip, OPAP mentioned that the segment benefited from the “healthy” growth of Pame Stoixima and strong contributions from Powerspin and virtuals.

VLT revenue increased by 2.5% to €86.5m, maintaining an upward trend due to ongoing machine optimization and overall experience enhancements. Conversely, revenue from the instant and passives segment dropped by 9.0% to €27.8m.

Operating expenses for Q1 rose by 18.6% to €105.4m, driven by increased costs in staffing, marketing, and other operational areas. Gaming revenue-related expenses also rose by 15.8% to €25.6m, alongside higher depreciation and amortization costs. OPAP reported €1.5m in net finance costs, resulting in a pre-tax profit of €155.7m, a 3.4% decline year-on-year. After paying €39.9m in income tax, OPAP’s net profit for Q1 stood at €115.8m, down 4.0% from €120.6m in 2023.

Karas remains optimistic about the year ahead, citing upcoming international sporting events as potential growth drivers. “Overall, we are well positioned for another successful year, with our focus now turning to the forthcoming major international sporting events,” he said. “Finally, we remain committed to offering generous returns to our shareholders, as well as to creating value for our stakeholders and giving back to society.”

By fLEXI tEAM