Sazka Group’s subsidiary, OPAP, experienced a substantial surge in earnings and profits during the final quarter of 2021. This positive trend was driven by the robust performance of their sports wagering and digital casino operations.
Sports betting and online gambling were the primary contributors to OPAP’s financial success during this period. Their consolidated revenue for these three months amounted to €470.2 million, reflecting a 20.3% increase compared to the same period in the previous year.
Lottery continued to be their most significant revenue source, although it remained relatively stable at €178.4 million. The majority of this income originated from their retail outlets.
Sports betting revenue experienced a notable 39.1% year-on-year growth, reaching €141.4 million. This upward trajectory was fueled by the exceptional performance of their online betting platform. Online betting accounted for nearly 30% of their total betting revenue, a substantial increase from just 3.9% in the previous year.
Their video lottery terminals (VLTs) also demonstrated positive performance, with revenue rising by 5.4% to €84.4 million. However, the operation of these machines was subject to temporary restrictions in September due to new coronavirus-related regulations in Greece. Consequently, their instant and passive income declined by 11.2% to €24.1 million as a result of these regulations.
Online casino operations witnessed the most significant growth, with revenue reaching €42 million. This surge was attributed to OPAP’s increased ownership stake in the Stoiximan company.
During the eleventh month of 2020, OPAP expanded its ownership in the Stoiximan Group’s Greek and Cypriot ventures to 84.48%.
In terms of operational expenses, these climbed by 62.1% to €93.6 million, with increases in staffing, advertising, and other operational expenditures. However, the rise in income meant that earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 66.7% to €175 million.
Depreciation, amortization, and impairment charges for the period were €42 million, and with €9.6 million in financial charges, pre-tax profit was €123.5 million, an increase of 80.6% compared to the same period in the previous year.
OPAP paid €27.5 million in taxes during the quarter, resulting in a net profit of €96 million, an increase of 83.6% compared to €52.3 million in the third quarter of 2020.
OPAP’s chief executive, Jan Karas, stated: “OPAP’s third-quarter results demonstrate our capacity to maintain robust financial performance while implementing key initiatives of our ‘Fast Forward Strategy’.” “The resilience of retail and continued online growth, clearly benefiting from Stoiximan’s contribution, are the primary drivers.
“This period, we leveraged the advantages of our recently launched loyalty program, which is crucial to further digitizing our products. We are pleased to observe the positive impact of our loyalty program, which has been well-received by customers and partners.
“Despite this, we remain dedicated to delivering a more entertaining customer experience across all channels to drive OPAP’s long-term growth.”
During the nine-month period concluding on September 30th, OPAP’s income saw a 15.7% rise compared to the same period last year, reaching €1.04 billion. This growth was observed across all business sectors.
Operational expenditures climbed by 47.2% to €268.7 million, but the revenue expansion resulted in an 83.0% surge in EBITDA, reaching €379.9 million.
After subtracting depreciation, amortization, and impairment charges of €108.5 million, along with financing costs of €31.1 million, the profit before taxes amounted to €240.4 million, representing a 157.7% year-over-year increase.
Tax expenses for the period totaled €60.8 million, resulting in a net profit for OPAP of €179.6 million for the year to date, a 155.1% year-on-year jump.
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