OPAP Q3 bounce back hurt by continued lottery declines

OPAP SA has recorded a stable Q3 2020 trading period, as the Athens-listed gambling group continues to side with caution in steering all operating units ‘towards business normality’.  

Publishing its Q3 2020 trading update for the three-month period ending 30 September, OPAP recorded a marginal 0.7% decrease in group revenues to €391 million, driven by the strong comeback of its sports betting and VLT units. 

Improved Q3 trading activity saw group betting GGR increase by 14% to €105 million (Q3 2019: €92m), with VLT revenues up by 10% to €80 million (Q3 2019: €73m).

However, OPAP’s corporate performance continues to be dragged by lottery GGR declines of 9% to €179 million (Q3 2019: €197m), as the firm’s lottery network suffers from the fragmented retail reopening which has resulted in a significant decrease to customer footfall.  

As a result of OPAP’s lottery network declines, year-to-date group revenues tracked at €899 million, a 23% decrease on corresponding YTD 2019’s €1.17 billion.

Mitigating Covid headwinds, OPAP highlighted a number of ‘ well-timed containment measures’ which were undertaken to lower the group’s YTD operating costs by 5% to €182 million. As a result, the company reported a 20% decline in YTD marketing expenses, which fell to €35 million.

YTD EBITDA stands at €207 million, down 31% compared to 2019’s €305 million. However, OPAP noted that its Q3 EBITDA figures matched those recorded in 2019, amounting to €105 million. The betting group attributed this to its decision to secure cost efficiencies and ‘increased Kaizen Gaming contribution’.

Jan Karas, OPAP’s Acting CEO,  commented on company performance: “Our Q3 results demonstrate our ability to ensure operational readiness during unfortunate times and deliver healthy results upon the lift of lockdown measures.

“At the same time, our effort to tap the markets was a remarkable success demonstrating investors’ confidence and enhancing our liquidity. Going forward, in the volatile environment of the pandemic and the second lockdown, our focus remains on protecting and actively supporting our employees, partners and stakeholders, safeguarding our healthy financial position and enhancing our product proposition. We remain confident in our ability to face future challenges and deliver positive results.”