OPAP reported revenue of €470.2 million (£395.0 million/$528.8 million) for the third quarter ending September 30, marking a 20.3% increase from €391.0 million in the same period of 2020. While the lottery segment remained the largest revenue source, it experienced no growth, posting €178.4 million, with a substantial 97.7% coming from retail channels.
In contrast, sports betting revenue surged by 39.1% year-over-year, reaching €141.4 million. OPAP attributed this growth to a strong online presence, which was responsible for 29.8% of all betting revenue in the third quarter, a significant rise from just 3.9% a year earlier.
Revenue from video lottery terminals (VLTs) also rose by 5.4% to €84.4 million, despite restrictions on access beginning in mid-September due to COVID-19 measures in Greece. However, revenues from instant and passive games fell by 11.2% to €24.1 million due to these same access limitations.
The online casino segment saw the most significant increase, with revenue soaring to €42.0 million, helped in part by OPAP’s increased investment in Stoiximan, where it raised its stake in the Greek and Cypriot operations to 84.48% in November of last year.
On the expense side, operating costs rose significantly, up 62.1% to €93.6 million, reflecting higher spending on staffing and marketing. However, this rise in expenses coincided with revenue growth, resulting in a 66.7% increase in earnings before interest, tax, depreciation, and amortisation (EBITDA) to €175.0 million.
Depreciation, amortisation, and impairment costs totaled €42.0 million for the quarter. After accounting for financial costs of €9.6 million, OPAP reported a pre-tax profit of €123.5 million, an increase of 80.6% year-on-year.
The company paid €27.5 million in taxes during the quarter, leading to a net profit of €96.0 million, which is up 83.6% from €52.3 million in Q3 2020.
“Our Q3 results affirm our ability to sustain a strong financial performance, while implementing key initiatives of our Fast Forward Strategy,” said OPAP's CEO, Jan Karas. “Retail resilience and continuing online growth, clearly aided by Stoiximan’s contribution, were the key drivers.
“During the quarter, we tapped the benefits of our recently launched loyalty program, which is key to further digitalising our offering. We are pleased to see the positive impact of our loyalty program, which has been well received both by our customers and partners.
“We remain committed to delivering an even more entertaining customer experience across all our channels to promote OPAP’s long-term growth.”
Looking at the year-to-date figures, OPAP reported a revenue increase of 15.7%, totaling €1.04 billion for the nine months ending September 30, supported by growth in all business areas. Operating expenses climbed by 47.2% to €268.7 million, but the uptick in revenue led to an 83.0% rise in EBITDA to €379.9 million.
After accounting for €108.5 million in depreciation, amortisation, and impairment costs, along with €31.1 million in finance costs, OPAP’s pre-tax profit reached €240.4 million, a 157.7% increase compared to the previous year.
Tax payments for the year-to-date totaled €60.8 million, raising OPAP’s net profit for this period to €179.6 million, which represents a 155.1% increase year-over-year.
