Allwyn-owned OPAP reported a robust start to 2022, attributing its strong performance to the recovery of its retail business after facing challenges from Covid-19 restrictions last year. For the first quarter ending March 31, 2022, gross gaming revenue (GGR) reached €457.2 million (£389.2 million/$489.8 million), marking a significant increase of 162.5% from €174.2 million in the same quarter of the previous financial year.
The company adjusted its Q1 2021 comparables following an increase in its stake in Stoiximan Group’s operations in Greece and Cyprus. OPAP initially acquired a 51% stake in Stoiximan in August 2020 and later boosted its ownership to 84.4% in November of the previous year.
Lottery was the leading revenue contributor, generating €170.0 million, a remarkable rise of 364.5% year-on-year, as operations returned to full capacity across all channels. Betting revenue also saw an upswing, increasing by 85.6% to €152.8 million, driven by strong retail and online activity. In contrast, revenue from video lottery terminals was reported at €69.4 million, recovering from a period with no revenue in Q1 2021 due to machine shutdowns.
Income from instant and passive games surged 198.7% to €23.5 million, bolstered by the easing of Covid-19 measures, but online casino revenue fell 12.4% to €41.5 million.
On the cost side, OPAP reported GGR contributions and other levies totaling €144.6 million, alongside €89.9 million in agent commissions, €33.7 million in other direct costs, and €17.0 million in additional operating expenses. These outlays were partially offset by €82.6 million in other operating income.
Operating expenses showed an upward trend as well, with payroll expenses up 8.5% to €20.2 million, marketing costs rising by 45.2% to €23.3 million, and other operating expenses climbing 54.4% to €45.1 million.
Earnings before interest, tax, depreciation, and amortization (EBITDA) increased 175.4% to €168.8 million. After accounting for €135.0 million in depreciation and amortization costs and €15.5 million in finance costs, OPAP registered a pre-tax profit of €119.5 million, a staggering 724.1% year-on-year increase.
The tax burden for the quarter was €29.6 million, leading to a net profit of €89.9 million, which reflects an increase of 877.2% compared to the previous year.
“Following a strong FY 2021, OPAP posted a solid set of Q1 2022 results, driven by the solid retail contribution – despite the Covid-19 restrictions being in place – and the continuing online momentum,” remarked OPAP CEO Jan Karas. He noted that the company's success stems from various business initiatives aimed at providing engaging entertainment experiences, thus enhancing customer attraction and retention.
While geopolitical tensions and inflationary pressures have affected private consumption, partially offsetting the positive effects of lifted Covid-19 measures, Karas believes these results confirm the attractiveness of both their retail and online offerings, along with the strength of their diverse product range and business model.
Karas expressed confidence in OPAP’s ability to continue delivering value to all stakeholders, highlighting initiatives such as the completed renovation of Greece’s two largest hospitals, underlining the company’s commitment to societal contributions.
