OPAP revenue up 5.3 pct in Q1

OPAP Group said net revenues (GGR) grew by 5.3 pct to 358.9 million euros in the first quarter of 2017, from 340.7 million euros in the same period last year, moving higher for the quarter despite the persisting stagnant macro trends prevailing in the country.

Both Lotteries and Instant & Passives rose by 10.9 pct and 3.7 pct respectively, while sports betting came in lower by 6.9 pct compared with the corresponding period in 2016.

EBITDA totaled 78.5 million euros in the January-March period, down 0.4 pct from 2016. First quarter results were burdened by an one-off burden coming from the agents’ strikes and additional development
expenses linked with the new projects’ implementation. Net profit was down at 39.0 million euros (adjusted Q1 2016: 42.8 million) lower by 8.7 pct, owing to higher net interest and an increased effective tax rate. Net debt position was 82.6 million euros.

OPAP’s CEO, Mr. Damian Cope, commenting on the results said: “Despite the challenges of the domestic economic environment, OPAP managed to achieve meaningful Q1 GGR growth, aided by robust lottery games performance and continuing scratch tickets growth. At the same time our operating profitability stood marginally higher, despite the additional expenses related to the implementation of our new projects.

Operationally, we are progressing at full speed with the delivery of our strategic priorities – Virtual
games have been introduced across our entire retail network with an encouraging early performance, our VLTs rollout is fully under way, our technology transformation programme is picking up pace while the new agents’ commission structure has been effective since April. For the rest of 2017 we will continue to build on what has already been accomplished so far this year to ensure that we remain on track to achieve the delivery of our “2020 Vision”.