In the first quarter of 2024, OPAP experienced significant growth in its online casino sector, which contributed to a 4.2% year-on-year increase in total revenue, reaching €549.7 million (£467.5 million/$593.3 million). The Greek gambling conglomerate also reported strong performance in its lottery division, further bolstering its financial results for the period.
The company’s Gross Gaming Revenue (GGR) for Q1 2024 surpassed the previous year’s figures, climbing from €527.2 million to €549.7 million. Net Gaming Revenue (NGR), which is GGR minus contributions, levies, and duties, also saw a 3.6% rise, totaling €376.5 million. This growth underscores OPAP’s effective strategies in enhancing their gaming propositions and driving player engagement.
Among OPAP’s five primary revenue segments, three showed notable improvements in Q1. The most remarkable growth was observed in the online casino sector, which saw a 29.1% increase in revenue, amounting to €12.9 million. Despite declines in betting and instant and passive revenue, the company’s overall performance remains robust.
OPAP CEO Jan Karas expressed satisfaction with the Q1 outcomes, highlighting the company’s strong position for sustained growth throughout the year. “Our solid performance and organic growth in Q1 were driven by our focus on enhancing our offerings and promoting innovation. The online sector recorded strong activity, and our retail operations further solidified their position,” Karas stated.
OPAP’s Online and Lottery Segments Thrive
Breaking down the Q1 performance, the online casino segment emerged as a standout, with a 29.1% revenue increase to €70.9 million. This segment, while currently the smallest in terms of revenue, exhibited the highest growth rate, attributed to increased player engagement and higher spending.
Lottery operations continued to be the main revenue driver for OPAP, generating €196.0 million in Q1, a 3.9% increase from the previous year. The growth was fueled by the late-2023 revamp of Lotto and Tzoker games and the promising launch of Eurojackpot in March 2024, which added incremental revenues.
In the sports betting category, revenue slightly decreased by 0.2% to €168.5 million. Despite this minor dip, the segment benefited from the healthy growth of Pame Stoixima and substantial contributions from Powerspin and virtual betting options.
Revenue from Video Lottery Terminals (VLTs) also rose by 2.5%, reaching €86.5 million. This growth trend is supported by ongoing machine optimizations and efforts to enhance the overall player experience.
Conversely, the instant and passives segment experienced a 9.0% drop in revenue, totaling €27.8 million.
Q1 Operating Expenses and Net Profit Analysis
OPAP’s total operating expenses in Q1 increased by 18.6%, amounting to €105.4 million. This rise was driven by higher staffing costs, marketing expenses, and other operational expenditures. Gaming revenue-related expenses climbed by 15.8% to €25.6 million, with additional increases in depreciation and amortization costs. Net finance costs were reported at €1.5 million.
Pre-tax profit for the quarter stood at €155.7 million, a 3.4% decrease from the previous year. After accounting for €39.9 million in income tax, OPAP’s net profit for Q1 was €115.8 million, marking a 4.0% decline from €120.6 million in 2023.
“Overall, we are well-positioned for another successful year, with our focus now turning to the forthcoming major international sporting events,” Karas concluded. “We remain committed to delivering generous returns to our shareholders, creating value for our stakeholders, and giving back to society.”
