Gross gaming revenue (GGR) for OPAP in the first quarter has comfortably surpassed the €527.2 million reported by the company in the same period last year. Net gaming revenue—GGR minus GGR contribution and other levies and duties—also saw a significant increase, rising 3.6% to reach €376.5 million.
OPAP showed improved revenue figures across three of its five core segments in Q1. A standout highlight was the growth in the online casino business, where revenue increased dramatically by 29.1% to €12.9 million. While betting and instant and passives segments experienced declines, the overall performance remains positive, driven largely by online and retail growth.
Jan Karas, CEO of OPAP, is optimistic about the quarterly results. He believes that the first-quarter performance sets the company up for sustained growth throughout 2024. “OPAP reported solid performance and organic growth in Q1, driven by our focus on enhancing our proposition and promoting innovation, with online recording strong activity and retail further solidifying its position,” Karas stated.
“Looking ahead, we are focused on further upgrading our offering in every vertical and achieving progress in all pillars of OPAP’s Fast Forward business strategy,” he added.
A detailed breakdown of the Q1 figures reveals that the most impressive growth was in the online casino segment, where revenue shot up by an astonishing 29.1% to €70.9 million. Though this remains the smallest revenue stream for OPAP, the growth rate here far exceeded any other segment. According to OPAP, this surge is a result of heightened player engagement levels and increased spending per user.
The lottery sector continues to be OPAP’s main revenue driver. The €196.0 million generated in Q1 is 3.9% higher compared to last year, thanks in part to a revamp of the Lotto and Tzoker games late in the previous year. Moreover, the introduction of Eurojackpot in March of this year showed a promising start and contributed to incremental revenues, adding another feather in OPAP’s cap.
Turning to sports betting, revenue experienced a slight dip, edging down by 0.2% to €168.5 million during the quarter. Despite this minor decline, OPAP noted that the segment was supported by healthy growth in Pame Stoixima and solid contributions from Powerspin and virtual sports.
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Meanwhile, revenue from video lottery terminals (VLTs) saw a moderate increase, rising by 2.5% to €86.5 million. This upward trend is indicative of ongoing machine optimization and enhancements in the overall gaming experience, according to OPAP.
However, revenue from the instant and passives segment was not as favorable, falling by 9.0% to €27.8 million.
Concerning expenditures, total operating expenses witnessed a noteworthy increase, rising by 18.6% to €105.4 million during the first quarter. This was triggered by increased costs in staffing, marketing, and other operational areas. Gaming revenue-related expenses also went up by 15.8% to €25.6 million. Depreciation and amortization costs experienced a slight rise, and the company reported €1.5 million in net finance costs.
These financial maneuvers left OPAP with a pre-tax profit of €155.7 million, marking a decline of 3.4% year-over-year. Following the payment of €39.9 million in income tax, OPAP’s net profit settled at €115.8 million, representing a 4.0% drop from the €120.6 million recorded in the same period in 2023.
“Overall, we are well-positioned for another successful year, with our focus now turning to the forthcoming major international sporting events,” said CEO Karas. He emphasized the company’s commitment not only to its shareholders but also to creating value for all its stakeholders and contributing back to society.
In summation, OPAP’s Q1 performance demonstrates robust growth in specific sectors, especially in the burgeoning online casino segment. With a strategic focus on enhancing offerings and promoting innovation, OPAP is poised for ongoing success as it navigates through 2024.
