News and Results of OPAP S.A. for 2024

OPAP S.A. (Hellenic Football Prognostics Organization) is a leading Greek gaming and betting company, established in 1958. As a major operator in Greece, OPAP offers a variety of gaming products, including lottery, sports betting, and digital games. In 2024, OPAP remains a significant player in the Greek market and is expanding its online presence while exploring international opportunities.

OPAP S.A. Quarterly Financial Results Overview

Q1FY24 Overview

In the first quarter of FY24, OPAP S.A. showed solid financial performance, marked by steady growth in key financial metrics. The company reported an EBITDA margin of 35%, which aligns with previous periods, reflecting consistent profitability. Revenues increased by 5.6% year-over-year, driven by strong performance in both retail and online segments. Notably, OPAP’s online revenue continued to expand, accounting for nearly 30% of the company’s total revenue. This growth was supported by significant contributions from online sports betting and iLottery offerings. Cash reserves remained robust, with a Net Debt/EBITDA ratio of just 0.14x, signaling strong financial health going into the year​.

Q2FY24 Analysis

During the second quarter of FY24, OPAP recorded revenues of €363.6 million, a slight decline of 3.41% compared to the first quarter, though it represented a year-over-year growth of 5.45% from Q2FY23. Operating activities resulted in €150.12 million in earnings, slightly down from €157.18 million in Q1 but up 3.23% compared to Q2FY23. The company’s focus on digitalization, particularly in its iLottery and Free2Play segments, continued to drive performance, along with further loyalty programs aimed at enhancing customer engagement​.

Impact on Annual Forecast

The results of Q2FY24 have reinforced OPAP’s optimistic outlook for the full fiscal year. Despite a modest quarter-over-quarter revenue decline, the year-over-year improvement highlights the company’s resilience and adaptability, particularly in the online gaming sector. OPAP expects total annual revenues (GGR) to range between €2.15 billion and €2.20 billion, with EBITDA projected at €750-770 million for the full year. This forecast is underpinned by a continued emphasis on digital growth, along with preparations for major upcoming events such as Euro 2024.

Key Developments at OPAP S.A.

Operational Highlights

In 2024, OPAP S.A. launched several new projects aimed at strengthening its market presence. Notably, the introduction of the Eurojackpot in Greece in early 2024 boosted its lottery segment, while the launch of TIPSTERS, a digital sports betting community, further enhanced customer engagement in its sports betting offerings. These initiatives reflect OPAP’s commitment to digitalization and expanding its product portfolio​.

Strategic Changes

OPAP has been focusing on bolstering its digital capabilities, which contributed to a strong year-over-year growth in its online revenue. The company has undertaken strategic financial maneuvers, including a share buy-back program and an increase in dividend payouts to enhance shareholder value. The establishment of OPAP Eco SINGLE MEMBER S.A. further demonstrates OPAP’s strategic move into energy management to mitigate electricity costs​.

Market Position and Competition

Market Trends

The gaming industry has seen a shift toward digital platforms, and OPAP has capitalized on this trend by expanding its online offerings. The company’s focus on digitalization, especially in its lottery and sports betting segments, aligns with broader industry trends towards increased mobile and online gaming engagement. OPAP has also benefited from strong retail performance, driven by post-pandemic recovery​.

Competitive Landscape

OPAP remains a dominant player in the Greek gaming industry, holding a unique position due to its comprehensive product range. Its competitors include both local gaming operators and international companies expanding into the Greek market. OPAP’s investments in digital transformation and its focus on customer engagement through initiatives like Eurojackpot and TIPSTERS help the company stay competitive​.

These strategic moves and market adaptations position OPAP strongly in the evolving iGaming and betting industry.

OPAP S.A.’s Main News

For Q2FY24, OPAP S.A. delivered robust financial performance driven primarily by strong growth in its online segment. Key highlights include a 7% year-over-year increase in revenue, which reached €532.8 million. This growth was largely attributed to a 19.7% rise in betting revenue and a 19.9% increase in online casino revenue, marking a significant contribution from digital operations, which now account for nearly 30% of the company’s total revenue.

The company also recorded an 11.1% rise in net profit, bringing it to €118.2 million for the quarter. Despite higher marketing expenses, mainly due to promotional efforts around Euro 2024, OPAP managed to maintain healthy profitability, with EBITDA increasing by 3% to €183.4 million.

Strategically, OPAP continues to enhance shareholder value through initiatives like a share buyback program and the distribution of an interim dividend of €0.60 per share, scheduled for payment in November 2024. The company also outlined its preparedness for discussions regarding the renewal of the Hellenic Lotteries license and is exploring new opportunities, especially in the Cyprus gaming market.

Conclusion

OPAP’s performance in Q2FY24 underscores its successful navigation of the competitive gaming landscape. The company remains optimistic about achieving its FY24 financial targets, with expectations of total revenues between €2.15 billion and €2.2 billion and EBITDA in the range of €750 million to €770 million. As OPAP continues to strengthen its digital footprint and explore new market opportunities, particularly in Cyprus, it is well-positioned to maintain its leadership in the gaming sector.

For investors, OPAP’s solid growth and continued digital expansion present a favorable outlook, especially with ongoing share buyback programs and attractive dividend payouts. The company’s strong financial position and strategic focus provide confidence in sustained profitability, even as it prepares for the renewal of the Hellenic Lotteries license. For customers, enhanced digital offerings, such as EuroJackpot and iLottery, promise a more engaging and diversified gaming experience​.

You can review the report of OPAP S.A. for the Q2FY24 period here. This report will be useful for investors seeking a detailed analysis of the company’s financial stability and prospects, as well as analysts evaluating market trends and OPAP’s competitive advantages in the gaming arena.