OPAP reports 17% Q1 revenue fall as Covid-19 takes its toll
Greek operator also records profit and EBITDA losses as retail shutdown impact is revealed
OPAP has reported a gross gaming revenue (GGR) fall of 17% year-on-year to €328.3m for Q1 2020 as the coronavirus pandemic continues to financially impact the industry.
Lottery accounted for 47% of total GGR in Q1 2020 with €154.5m, while betting made up 27%, a slight increase year-on-year amounting to €87.9m.
Elsewhere, VLTs represented 20% (€66.6m) and instant and passive games delivered 6% (€19.2m) of total GGR.
Prior to lockdown commencing on 13 March, OPAP highlighted that year-on-year revenue up to that point was up 1.7%.
OPAP’s EBITDA fell by 23.6% year-on-year from €113m to €86.4m with net profit slumped 38% to €35.5m.
Marketing expenses were down 15% year-on-year from €14.8m to €12.6m, while payroll expenses remained flat with a +0.2% deviation to €19.8m.
The operator pointed towards enforced retail closures in Greece and Cyprus that lasted for 58 and 68 days respectively as the key reason for the decreases in GGR, EBITDA and profit.
Acting CEO Jan Karas, who started the top job in May 2020, said: “OPAP’s Q1 2020 was a double-faced quarter; on the one hand we managed to demonstrate sizeable growth stemming mostly from VLTs and betting up to 13 March, while from 14 March onwards our retail estate was closed down leading to a severe decline of the group’s revenues.
“Nonetheless, we reported an overall solid set of results by putting promptly into effect our business continuity plan, achieving material cost savings and enhancing liquidity,” he added.
Karas also gave his thanks and gratitude to OPAP employees for their flexibility in dealing with the unprecedented situation brought on by Covid-19.
He continued: “I would like to extend my appreciation to our network for both their swift adaptation to the new norm and working conditions as well as for their strong will to resume their business.
“I am confident that our agents’ and employees’ hard work, positive spirit and commitment will drive once more OPAP’s business forward,” he concluded