Greek lottery operator OPAP has reported upticks in revenue during the third quarter as players returned and online operations gained momentum.
Specifically, lottery operations grew slightly by 1.2% year-over-year “on the back of hefty Tzoker performance due to favourable jackpots roll-over assisting also fast games’ demand”.
Reflecting on the results, CEO Jan Karas believes the “encouraging momentum” seen in Q3 should “lead to a strong finish” to 2022 for the operator.
For Q3, OPAP has reported gross gaming revenues of €498.8m, a 6.1% improvement YoY (Q3 2021: €470.2m) following a retail pick-up with occasional players gradually returning to stores and strong online momentum. 75% of GGR for Q3 came from retail operations, with the remaining 25% from online.
Year to date, GGR stands at €1.4bn, a 34.4% uptick YoY (2021: €1.04bn).
Per vertical, lottery revenues in Q3 improved by 1.2% YoY to €180.5m (2021: €178.4m) “on the back of hefty Tzoker performance due to favourable jackpots roll-over assisting also fast games’ demand”.
Betting GGR rose by 10.5% YoY to €156.2m (2021: €141.4m) thanks to a busy sports calendar and the growth of Powerspin operations. VLTs revenues underwent “sequential improvement”, coupled with gradual walk-ins increase, but still declined YoY to €81m (2021: €84.4m).
Revenues from instant & passives lottery games in Q3 reached €26.0m, a 7.9% improvement YoY (2021: €24.1m) thanks to “increased mobility and several products’ initiatives further triggering customers’ interest and boosting playability”.
Meanwhile, online casino GGR came in at €55.1m, up by 31.4% YoY (2021: €42m) following “successful product enhancements”.
Karas commented: “Our Q3 2022 performance was characterized by the continuing retail rebound, as a result of occasional players gradually returning to the game, and the sustained strong growth in online. Additionally, business operations’ normalization resulted in an improved EBITDA margin, while contributing to OPAP’s solid financial position.”
OPAP’s EBITDA for the quarter came in at €197.6m, up by 12.9% YoY (2021: €175m). YTD, EBITDA stands at €533.3m, a 40.4% increase YoY (2021: €379.9m), “reflecting operations normalization on the back of increased top-line performance”.
The operator noted that to support retail and online growth, operating expenses reached €79.4m for Q3, 2.8% higher than the previous year. YTD, operating expenses currently stand at €251.2m, up 9.9% YoY (2021: €228.6m).
Net profit for the quarter finished at €118.5m, a 19.4% uptick YoY (2021: €99.3m). YTD, net profit is €285.8m, a 60.3% increase YoY (2021: €178.2m).
Karas continued: “The benefits emerging from our unique product propositions in both channels and our focus on the continuous upgrade of customer experience showcase the effectiveness of our Fast Forward strategy.
“Among other things, the introduction of new, improved Pame Stoixima retail odds, which are competitive to those of the online market, affirms our ability to execute bold and disruptive decisions, which push boundaries and deliver meaningful results.
“Moreover, during the quarter, we further engaged with our customers and boosted our performance through initiatives like the launch of innovative, augmented reality Scratch tickets, the conclusion of the migration to our new OPAP Store App, the gamified widgets in online Tzoker and Casino, and promo campaigns that enhance the position of our portfolio.
“Looking ahead – and as the much-anticipated, landmark event of World Cup has just kicked off – we believe this encouraging momentum to lead to a strong finish for the year.”
OPAP has also updated its EBITDA guidance for the year to €720m in anticipation of a strong finish to 2022.