Greece’s National Lottery operator, OPAP, has unveiled its financial results for the first half of 2024, showcasing a 5.6% increase in gross gaming revenue (GGR), which reached €1.82 billion ($2.01 billion). However, despite this revenue growth, EBITDA experienced a minor decline of 0.2%, amounting to €373.7 million.
Gross Gaming Revenue (GGR)
For the first half of 2024, OPAP’s GGR saw a notable uptick of 5.6%, reaching €1.82 billion. This increase is indicative of a robust performance, particularly during the Euro 2024 tournament, which significantly bolstered the operator’s sports betting segment.
In Q2 2024 alone, OPAP’s GGR climbed by 7%, achieving €532.8 million. This quarter’s performance was notably driven by heightened engagement during Euro 2024, reflecting a successful period for both online and retail operations.
EBITDA and Profit Margins
Despite the revenue growth, EBITDA experienced a slight decrease of 0.2%, settling at €373.7 million for H1 2024. This marginal decline is a point of concern, suggesting that while revenue is increasing, operational costs or other expenses may be impacting profitability.
Gross profit from gaming operations, however, saw a positive shift, rising by 6.6% compared to H1 2023, amounting to €450.6 million. This reflects a solid overall performance in gaming operations despite the slight drop in EBITDA.
Online Casino
The online casino sector emerged as the primary revenue driver for OPAP in the first half of 2024. Revenue from online casino operations surged by 24.2%, reaching €140.3 million. This significant increase can be attributed to higher player engagement and the expansion of OPAP’s online gaming portfolio.
Betting and Lottery
Betting revenues also saw a healthy increase of 9.2%, bolstered by the success of Euro 2024. The growth in betting revenue reflects a strong market response to sports events and betting opportunities.
Lottery revenues grew by a more modest 1.8%. While this growth is positive, it is not as pronounced as the increases seen in online casino and betting sectors. This could indicate a more stable but slower-growing segment within OPAP’s portfolio.
Strategic Developments
In October of the previous year, OPAP extended its contract with Intralot, continuing a longstanding partnership. This move aligns with OPAP’s strategy to solidify its operational capabilities and enhance service delivery.
Additionally, following Allwyn’s acquisition of the remaining Sazka minority stake in OPAP in 2022, the company has been positioned for strategic realignment and growth. This acquisition has likely contributed to the improved financial performance observed in H1 2024.
CEO’s Remarks
OPAP’s CEO, Jan Karas, commented on the company’s performance, highlighting the positive impact of Euro 2024 on sports betting activities. Karas noted that the strong results in Q2 2024 were primarily driven by the Euro 2024 tournament, which significantly boosted sports betting revenue.
Karas also emphasized the upward trend of Eurojackpot, which has been instrumental in the transformation of OPAP’s draw-based games. The successful execution of OPAP’s dual strategy—focusing on both retail and online games—has led to record levels of online game penetration.
Looking forward, Karas expressed confidence in OPAP’s ability to meet its financial and strategic goals for the full year of 2024. He also underscored the company’s commitment to sustainability and social responsibility, aiming to deliver tangible value to all stakeholders.
OPAP’s H1 2024 financial results reveal a company experiencing growth in gross gaming revenue and online casino performance, despite minor declines in EBITDA and net profit. The robust performance during Euro 2024 and the strategic moves, such as extending the Intralot contract and recent acquisitions, position OPAP well for the remainder of the year. The company’s focus on enhancing its online offerings and maintaining operational efficiency will be crucial as it aims to achieve its strategic goals and deliver value to its stakeholders.