OPAP stabilises in Q3 after nine-month downturn caused by Covid-19

OPAP has reported flat Q3 gross gaming revenue (GGR) of €391m as the Sazka-owned operator continues to recover from the financial damage caused by Covid-19.

Third quarter GGR decreased by 0.7% year-on-year, rounding off a 23.4% revenue decline for the first nine months of 2020 to €898.9m.

Gaming gross profit reached €147.1m in Q3, down 3.6% from the same period last year, with the nine-month figure dropping by 26% to €338.2m.

EBITDA plummeted by 32% for the first nine months of the year to €207.6m, although the first signs of recovery were seen during Q3 amid a rise of 1.5% to €105m.

The Q3 uptick was driven by cost efficiencies and an increased contribution from Kaizen Gaming, in which OPAP owns an 84.5% stake.

These cost efficiencies saw operating expenses fall by 6% in the first nine months of the year, while Q3 operating expenses came in €57.7m lower than last year after a decrease of 3.8%.

OPAP acting CEO Jan Karas said: “Our Q3 results demonstrate our ability to ensure operational readiness during unfortunate times and deliver healthy results upon the lift of lockdown measures.

“On the financial side, OPAP’s performance came close to last year’s levels, aided by increased sportsbook activity in Q3 and the ongoing growth of online and VLTs (video lottery terminals), which counterbalanced the drop in lottery.

“At the same time, our effort to tap the markets was a remarkable success demonstrating investors’ confidence and enhancing our liquidity.

“Going forward, in the volatile environment of the pandemic and the second lockdown, our focus remains on protecting and actively supporting our employees, partners and stakeholders, safeguarding our healthy financial position and enhancing our product proposition.

“We remain confident in our ability to face future challenges and deliver positive results,” he added.