The Greek gaming giant OPAP has experienced a record-breaking year in 2023, announcing a sharp 7.7% increase in gross gaming revenue fueled by significant online growth and a robust retail performance. In a year that could have been marred by a substantial fine for market position abuse, OPAP’s aggressive digital strategy and persistent retail presence saw revenue reach €1.39bn—a testament to the company’s resilience and strategic acumen.
OPAP’s lottery sector continued to be the company’s most lucrative source of income, with lottery sales reaching €730.0m, a modest increase of 2.9%. Despite being the smallest avenue of growth, the steady performance of KINO—a popular numbers game—cemented the lottery’s stronghold on top of OPAP’s revenue streams.
The stellar performer of the year, however, was the company’s online casino division, which saw revenue skyrocket by 26.2% to €251.8m. This leap was largely attributable to higher player engagement and the company’s focused efforts in the final quarter of the year.
The year was not without its challenges for OPAP, as the Hellenic Gaming Commission levied a hefty €24.5m fine against the company in October 2023. The fine was imposed on grounds of OPAP exploiting its dominant position in the Greek gaming market, a significant setback in an otherwise prosperous year.
Despite the financial penalties, CEO Jan Karas maintained an upbeat perspective on the year’s results, celebrating OPAP’s strategic direction and its positive impact on the company’s operations. “OPAP concluded 2023 with the strongest Q4 ever and achieved record revenues,” Karas remarked. He attributed the success to “the consistent and effective implementation of our business strategy throughout the year, as well as our ability to pursue and achieve ambitious goals.”
In the dynamic arena of sports betting, OPAP’s revenue climbed by 6.9% to €645.5m, buoyed by the popularity of products like Powerspin and various virtual betting options. The company also highlighted the success of its online sports betting service, indicating the potency of digital platforms in their overall revenue growth.
Additionally, OPAP saw success with its video lottery terminals (VLTs), as revenue from this segment increased by 8.2% to €344.5m. Meanwhile, revenue from instant and passive games ascended to €115.9m, marking a 7.4% increase year-on-year.
Financial expenditures revealed that gaming revenue-related expenses were up by 9.1% to €583.4m. Staffing costs increased by 8.6% to €91.8m, marketing expenditures rose by 10.4% to €123.4m, and other operating expenses jumped by 17.5% to €198.5m.
The depreciation and amortization charges for the year were €133.6m, and net finance costs reached €20.1m. Despite these increases in spending, OPAP reported a pre-tax profit of €570.1m, though this figure represented a 21.2% decline from the previous year. After accounting for taxes, the net profit stood at €408.3m, a 31.1% decrease relative to 2022’s figures.
Q4 alone saw group revenue climb by 7.5% to €581.2m. Meritable growths in revenue were observed across lottery, sports betting, VLTs, and particularly, the online casino revenue, which surged by 25.7% to €76.3m. However, a downturn was noted in the instant and passives segment, which experienced a 5.2% drop to €30.2m.
In quarter four spending, gaming revenue-related expenses rose by 6.7% to €163.0m, while payroll costs saw a marginal increase. Marketing expenditures, however, fell by 9.5% to €38.7m, and other operating expenses saw a 9.7% uptick. Although OPAP did not provide an exhaustive financial breakdown for Q4, net profit was highlighted as being 67.2% lower at €100.6m compared to the previous year, largely due to a non-recurring profit from Betano’s disposal in Q4 of 2022. EBITDA for the last quarter improved by 3.7%, reaching €210.2m.
In anticipation of the coming year, OPAP looks to continue its “Fast Forward” business strategy, which aims to enhance its offerings, secure sustained growth, and maintain profitability. The company’s preliminary guidance for 2024 suggests a revenue range between €2.15bn and €2.20bn, and an EBITDA forecast between €750.0m and €770.0m. This outlook indicates OPAP’s unwavering commitment to its shareholders, sustainability, and social responsibility objectives, reinforcing CEO Jan Karas’s confidence in OPAP’s future.
