OPAP Achieves Record Financial Growth in Q3 2024, Driven by Retail and Online Segments

6 hours ago 0 16

Greek gaming operator OPAP has released its financial figures for the third quarter of 2024, showcasing a period of exceptional growth across multiple channels. Gross gaming revenue (GGR) surged to €565.8 million ($595.4 million), reflecting a 17.6% year-on-year increase. This growth was supported by strong performances in both retail and online segments, marking a significant milestone for the company.

Retail GGR Growth Fueled by Key Drivers

Retail GGR rose by an impressive 11% to reach approximately €392 million. A major contributor to this growth was the enhanced performance of the lottery game Tzoker, particularly its Mega jackpot, which generated significant interest and boosted activity in OPAP stores. Additionally, sports betting benefited from a packed sports calendar, with events like Euro 2024 driving higher participation levels in both the retail and online channels.

Online Segment Records Exceptional Growth

The online segment was a standout performer, with GGR climbing 35.2% to reach €173 million. Notably, online casino revenue rose by an astounding 48.3% to €92.7 million, underscoring the sustained momentum in OPAP’s online gaming vertical. This growth highlights OPAP’s successful digital transformation efforts, enabling it to meet increasing consumer demand for online entertainment.

Profitability Highlights and Operating Efficiencies

OPAP’s robust revenue growth translated into significant profitability gains:

Gross profit increased by 25%, reaching €241.9 million.
Net profit surged from €83.3 million in Q3 2023 to an impressive €120.5 million in Q3 2024.
EBITDA (earnings before interest, taxes, depreciation, and amortization) rose by 46.6% to €213.2 million, with the EBITDA margin improving to 37.7%, compared to 30.2% in the previous year.

Moreover, operating expenses decreased by 12.2% to €100.6 million, showcasing OPAP’s commitment to cost efficiency and operational discipline.

Tzoker Mega Jackpot: A Major Retail Boost

The Tzoker Mega jackpot played a pivotal role in enhancing activity across both retail and online channels. Its popularity not only increased ticket sales but also drove higher footfall in OPAP stores. The lottery game’s strong performance highlights the enduring appeal of traditional gaming products, even in an increasingly digital age.

Online Casino Momentum and Sports Betting Growth

The online casino vertical has become a critical growth engine for OPAP, with sustained momentum driving substantial revenue gains. Simultaneously, sports betting continued to thrive, benefiting from a full calendar of events that included both domestic and international competitions. These trends underscore the company’s ability to cater to diverse gaming preferences.

CEO Jan Karas on OPAP’s Strategic Success

Commenting on the results, Jan Karas, CEO of OPAP, highlighted the company’s strong performance and strategic direction. He stated: “Following the solid performance in the first half of 2024, OPAP has delivered a strong set of results in Q3. The quarter’s highlight was Tzoker’s Mega jackpot, which led to enhanced activity in both the retail and the online channel alongside increased footfall in our stores.”

Karas also emphasized the importance of cost management, noting that profitability improved significantly due to the normalization of operating expenses. He expressed confidence in OPAP’s ability to meet its financial and business objectives for 2024, adding: “We remain confident that we are well-positioned to deliver on the upper end of our 2024 outlook.”

Strategic Focus Areas for Sustainable Growth

OPAP’s Q3 2024 results reflect the company’s focused efforts to achieve long-term growth. Key strategic priorities include:

Enhancing Retail Engagement: Leveraging the popularity of products like Tzoker to drive in-store activity and customer engagement.
Expanding Online Capabilities: Investing in technology and marketing to further grow the online gaming segment.
Cost Optimization: Continuing to streamline operations to maximize profitability.
Diversifying Offerings: Introducing new games and features to attract a broader audience across retail and online platforms.

Outlook for Full-Year 2024

OPAP’s stellar Q3 performance positions the company to achieve its full-year objectives. With strong momentum across both retail and online channels, coupled with disciplined cost management, OPAP is poised to deliver results at the upper end of its guidance for 2024. This underscores the company’s resilience and adaptability in a dynamic market environment.

FAQs About OPAP’s Q3 2024 Financial Results

1. What is OPAP’s Gross Gaming Revenue (GGR) for Q3 2024?

OPAP reported a GGR of €565.8 million ($595.4 million) in Q3 2024, reflecting a 17.6% year-on-year increase.

2. How did the retail segment perform during Q3 2024?

The retail segment’s GGR increased by 11% to approximately €392 million, driven by the strong performance of the Tzoker lottery and sports betting, which benefited from events like Euro 2024.

3. How much growth did the online gaming segment achieve?

The online gaming segment recorded a 35.2% increase in GGR, reaching €173 million. Notably, online casino GGR surged by 48.3% to €92.7 million.

4. What were OPAP’s key profitability metrics for Q3 2024?

Gross Profit: €241.9 million, up 25%.
Net Profit: €120.5 million, compared to €83.3 million in Q3 2023.
EBITDA: €213.2 million, representing a 46.6% increase.
EBITDA Margin: 37.7%, up from 30.2% in the prior year.

5. How did OPAP manage operating expenses during the quarter?

Operating expenses decreased by 12.2%, reaching €100.6 million, highlighting the company’s focus on cost efficiency.

6. What role did the Tzoker Mega Jackpot play in the company’s growth?

The Tzoker Mega Jackpot significantly enhanced activity in both the retail and online channels, driving ticket sales and increasing customer footfall in OPAP stores.

7. What factors contributed to the growth of the company’s online casino vertical?

The online casino vertical sustained strong momentum, with 48.3% growth in GGR, driven by increased player engagement and demand for digital gaming options.

8. What did CEO Jan Karas say about the Q3 2024 results?

CEO Jan Karas highlighted the strong performance, crediting the Tzoker Mega Jackpot and sports betting activities for driving growth. He emphasized the company’s cost efficiency efforts and expressed confidence in meeting the upper end of the company’s financial objectives for 2024.