OPAP’s online casino revenue grew 4.2% on an annual basis to EUR549.7m ($593.3m) (PS467.5m/$593.3m). The Greek gambling group also praised its success in the lottery business.
Gross gaming revenues (GGRs) for Q1 easily exceeded the EUR527.2m reported in the same quarter last year by OPAP. Gross gaming revenues (GGR) minus GGR contributions and other duties and levies also increased by 3.6%, to EUR376.5m.
OPAP’s revenue increased in three of its core segments during Q1. Online casino revenue grew by 29,1%, to EUR12,9m. The revenue from video lottery machines (VLTs) and lotteries was also up, but OPAP noted declines in instant games and passives.
Jan Karas, CEO of OPAP, is generally pleased with the overall results. Jan Karas says that the Q1 results set the group up to grow throughout the rest of 2024.
Karas stated that “OPAP recorded solid performance and organic increase in Q1, driven primarily by our focus to enhance our offering and promote innovation. Online activity was strong and retail’s position further strengthened,” Karas added.
Looking ahead, our focus is on upgrading our offerings in each vertical as well as achieving success in the pillars of OPAP’s Fast Forward Business Strategy.
OPAP celebrates online and lotteries growth
The online casino sector saw a revenue increase of 29.1% to EUR70.9m.
OPAP’s lowest-earning segment, this one saw the highest growth. OPAP stated that the increase is a result of increased player spending and engagement.
Lottery remains OPAP’s primary source of income. The EUR196.0m in revenue generated during Q1 was 3.9% higher than the prior year. This is due to a redesign of Lotto & Tzoker late last year. OPAP also said that Eurojackpot launched in March of this year had a good start, and generated incremental revenue.
Sports betting revenue fell 0.2% during the third quarter to EUR168.5m. OPAP stated that despite the slight decline in this segment, it was supported by the “healthy growth” of Pame Stoixima as well as solid contributions from Powerspin & virtuals.
VLT revenues increased 2.5%, to EUR86.5m. This is a continuation of the upward trend that OPAP has been able to achieve through ongoing machine optimisation efforts and improvements in overall customer experience.
Final revenue for the Instant and Passive business was EUR27.8m. This represents a 9.0% drop.
In Q1, net profit fell 4.0%
Total operating costs were EUR105.4m, 18.6% more than in Q1. The increase in costs was due to an increase in staffing costs, marketing costs and other operational costs.
The gaming revenue expenses increased by 15.8% to EUR25.6m. Depreciation costs also increased. OPAP reported EUR1.5m of net finance charges.
The pre-tax profit was EUR155.7m. This is down by 3.4% on the previous year. OPAP has paid EUR39.9m of income tax. This translates to a net profit for Q1 of EUR115.8m. That’s a 4.0% drop from EUR120.6m of 2023.
Karas stated that “Overall we’re well-positioned to have another successful year. Our focus is now on the upcoming major sporting events around the world.”
We are committed to rewarding our shareholders with generous returns, creating value for all our stakeholders, and contributing to the society.
