OPAP has reported a 4.2% year-on-year increase in revenue, reaching €549.7m (£467.5m/$593.3m) in Q1, driven largely by the impressive growth in its online casino and lottery sectors. The Greek gambling group also highlighted further success within its lottery division, emphasizing its strategic focus on innovation and enhanced customer offerings.
Gross Gaming Revenue (GGR) for the first quarter surpassed the €527.2m reported in the same period last year. The Net Gaming Revenue (NGR), which is GGR minus contributions and other levies and duties, saw a 3.6% increase, amounting to €376.5m.
The report indicates higher revenue across three of OPAP’s five core segments in Q1. The standout performer was the online casino business, where revenue soared by 29.1% to €12.9m. The lottery and video lottery terminal (VLT) segments also experienced revenue growth, though there were noted declines in betting and instant and passives revenue.
OPAP’s CEO, Jan Karas, expressed satisfaction with the results, highlighting that the Q1 performance positions the group for continued growth throughout 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 stated.
Looking forward, Karas emphasized the group’s commitment to upgrading its offerings across all verticals and achieving progress in all aspects of OPAP’s Fast Forward business strategy. This strategy aims to drive further growth and strengthen OPAP’s market position.
A detailed breakdown of the Q1 figures reveals that the online casino segment was the highlight, with revenue increasing by 29.1% to €70.9m. Although this remains OPAP’s smallest revenue source, the growth rate here far exceeded that of other segments. This rise is attributed to higher player engagement levels and increased spending.
The lottery segment continues to be OPAP’s primary revenue generator, with Q1 revenue reaching €196.0m, a 3.9% increase compared to the previous year. This growth is partly due to the revamp of the Lotto & Tzoker games in late 2023. Additionally, the Eurojackpot, launched in March, made a promising start and contributed to incremental revenues.
In the sports betting segment, revenue slightly declined by 0.2% to €168.5m. Despite this minor drop, OPAP noted healthy growth in Pame Stoixima and solid contributions from Powerspin and virtual sports.
VLT revenue saw a modest increase of 2.5% to €86.5m. OPAP attributes this upward trend to ongoing machine optimization and enhancements in the overall gaming experience. However, revenue from the instant and passives business fell by 9.0%, totaling €27.8m.
On the financial front, total operating expenses rose by 18.6% in Q1, amounting to €105.4m, due to higher costs in staffing, marketing, and other operational areas. Gaming revenue-related expenses also increased by 15.8%, reaching €25.6m, while depreciation and amortization costs edged higher. OPAP reported €1.5m in net finance costs.
Despite these increased costs, OPAP achieved a pre-tax profit of €155.7m, down 3.4% year-on-year. After paying €39.9m in income tax, the net profit for Q1 stood at €115.8m, a 4.0% decrease from €120.6m in the previous year.
Karas concluded by expressing confidence in OPAP’s position for another successful year, with a focus on the upcoming major international sporting events. He reiterated OPAP’s commitment to providing generous returns to shareholders, creating value for stakeholders, and contributing to society.
