Operator News
Greece – OPAP sees ‘gradual signs of recovery’ as Q1 income falls by 17.1 per cent
By Phil - 12 June 2020
Before the COVID-19 closures, OPAP saw its revenues improve by 1.7 per cent during the three-month period ended March 31, 2020, describing the period as a quarter of two halves due to a strong start to the year and then the onset of the coronavirus.
The closures from March 14 due to the corona, led to reduced net income of 17.1 per cent to €328.3m. Gross profit from games decreased by 20.5 per cent to €122.3m as a result of the decrease in revenues, while on a recurring basis until March 13 it remained at positive levels.
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter of 2020 fell by 23.6 per cent €86.4m.
Having now reopened its business with restrictive measures, OPAP said it has seen ‘gradual signs of recovery following the partial lifting of restrictive measures.’
Jan Karas, Acting CEO of OPAP, said: “The first quarter of 2020 for OPAP had two sides. On the one hand, we have achieved many important things in our development, which came mainly from the gaming industry (VLTs) and the betting industry, until March 13. On the other hand, from March 14 onwards, the operation of our commercial network stopped, which led to a serious reduction in our revenues. However, we recorded strong financial results overall, activating immediately our business continuity plan, achieving significant cost savings and enhancing our liquidity.
“In this particular period, our focus on online activity and related preparatory work, began to bear fruit. We have achieved strong growth our customer base, while improving our online product portfolio, through the availability of virtual betting games and casino games,” he added. “At the same time, we have reached an agreement on the acquisition of an additional share in Stoiximan’s activities in Greece and Cyprus, taking our participation to rise to the level of 84.49 per cent. From May 11, the OPAP agencies and the street vendors of Hellenic Lotteries SA restarted their operations, while the PLAY network of stores resumed its operation from June 8, under strict restrictions and precautionary measures, as the safety of our agents and customers is always a priority.”
“Finally, I would like to express my appreciation for our network, both for the immediate adaptation to the new reality and the new working conditions, as well as to the determination to restart activities as noted the impressive 99 per cent re-launch rate, from day one. I am optimistic that hard work, positive spirit and commitment of agents and employees will give a boost to OPAP’s business activities again.”
