OPAP SA has published its financial results for the first quarter of 2021, with CEO Jan Karas noting a record quarter for online revenue while retail revenue continues to be affected by the pandemic.
Announcing its consolidated financial results for the period ended March 31st, 2021, the Athens-listed gambling group reported gross gaming revenue (GGR) of €174.2m, 46.9% decrease year-on-year (Q1 2020: €328.3m) due to retail closure as only circa 40% of its retail network was reopened in February.
Online delivered a record quarter for OPAP of €122.4m, aided by the full consolidation of Kaizen Gaming. Meanwhile, retail only managed revenue of €52m, a fall when compared to the previous year (Q1 2020: €324m) due to the impact of the ongoing health crisis.
However, the group expects retail revenue to turn around soon, as all OPAP shops in Greece have been open since April 12 under social distancing measures, while VLT activity is expected to resume operations on May 24.
Karas stated: “In the first quarter of the year, online demonstrated a record quarter achieving remarkable growth while, on the retail front, revenues were expectedly affected by the lockdown and stores’ closure across our networks. We are excited with both the OPAP stores re-opening on April 12 as well as the imminent VLTs activity restart.”
OPAP’s revenues from lottery came in at €36.7m for the quarter, lower by 76.3% y-o-y (Q1 2020: €154.5m) due to store closures for the majority of the quarter. Betting revenues reached €82.4m 6.4% lower y-o-y (Q1 2020: €88m) due to retail closures. Online provided most of the segment’s revenues and it was boosted by the Kaizen Gaming full consolidation.
The group reported a gross profit (from gaming operations) in Q1 2021 of €75.6m, down 38.2% y-o-y (Q1 2020: €122.4m) due to revenues’ decline and Hellenic Lotteries’ disproportional GGR contribution to meet the minimum annual €50m contractual threshold.
OPAP declared an EBITDA in the quarter of €61.3m, 29% lower y-o-y (Q1 2020: €86.4m) or 43.8% lower like-for-like after excluding one-off income in Q1 2021. Its operating expenses in Q1 2021 came in at €76.1m, 14.8% y-o-y (Q1 2020: €57.7m) on an l-f-l basis, excluding one-off items and Kaizen Gaming’s full consolidation effect.
The group published a net profit of €10.3m in Q1 2021, a 71.1% decline on the previous year (Q1 2020: €35.5m) or a €1.9m decrease on an l-f-l basis after excluding one-off income.
Looking ahead, Karas noted OPAP is preparing itself for the big summer of events, commenting: “Performance-wise, the early signs are particularly encouraging for retail while at the same time our online business remains strong.
“Going forward, we remain committed to providing prime services to the clients across all channels setting the ground to offer a top-class customer experience in the forthcoming large betting events like the UEFA Euro 2020.”