Stoiximan consolidation saves OPAP from year of COVID shocks

By | April 1, 2021

OPAP SA maintains confidence in its growth strategy and future prospects, despite a tough end-of-year closing derailing its return towards financial stability. 

Publishing its full-year 2020 financial results, the Athens-listed gambling group recorded a 30% revenue slump to €1.12 billion (FY2019: €1.61bn) attributed to Greece enforcing its second national lockdown during Q4, which forced OPAP to close 2/3 of its retail venues.

Observing strict lockdown orders, OPAP reports that group Q4 revenues dropped by 50% to €230 million (Q42019: €446m) – with all OPAP trading units impacted by pandemic uncertainties.

OPAP flagship lottery unit saw its full-year revenues decrease to €518 million, down 33% on corresponding FY2019 results of €778 million, as the division was forced to observe venue restrictions throughout the year.

Tough Q4 trading conditions saw OPAP sports betting summer momentum wiped-out, as the division recorded full-year revenues of €310 million, registering a 21% decline against FY2019 results of €396 million.

Meanwhile, despite upgrades to its retail systems, OPAP VLTs recorded a 30% decline in FY2020 revenues to €200 million (FY2019: €295m) – as OPAP betting stations being forced to operate at limited capacity.

Absorbing COVID-19 shocks, across its commercial pipeline, OPAP reports a FY2020 EBITDA of €260 million, down 37% on FY2019 results of €412 million.

Despite its COVID-related trading woes, OPAP governance underlined that 2020 had been a year of significant group-wide strategic progress, with positive results registered net savings whilst the company strengthened its online gambling portfolio.

Closing its 2020 accounts, OPAP delivered net profits of €205 million, up 1.5% on FY2019 results of €202 million, as the company reported significant savings on retail agent commissions (- 32%) combined with lower marketing expenses (-10%).

Furthermore, net results received a boost due to the integration of Kaizen Gaming’s Q4 profits of €142 million to its end of year financial results.

Following approval from Athens and Cypriot competition courts, Kaizen Gaming’s Stoiximan online gambling brand has been consolidated as an OPAP asset, recognised as of 2 December onwards.

“Although Q4 was yet another quarter disrupted by COVID-19, with retail closure and restrictions imposed for tackling the pandemic, OPAP has once again demonstrated substantial operational and financial readiness to mitigate the impact, through its diversified portfolio.” said Group CEO Jan Karas

“At the same time, our investment in Kaizen Gaming, which operates the leading Stoiximan brand, has been concluded, our games portfolio has been further enhanced and our retail network partners have been supported efficiently.”

“With confidence, we are pursuing the successful execution of OPAP’s new business strategy, the Fast Forward strategy, in order to deliver even better Gaming Entertainment to our customers”.