Greek economic struggles decimate OPAP profits
Year-on-year decline of more than 70% put down to "harsh local macroeconomic environment" among other factors
More than 70% of OPAP’s Q1 profits were wiped away as a result of the ongoing economic crisis in Greece, the lottery operator has revealed in its financial results for the three months ended 31 March.
Net profit for the quarter was 38.9m, down from 131.9m in Q1 2012, with net profit margin cut to 4.5% from 12.4% in the corresponding period last year.
Sales dropped below 1bn after falling 18.4% year-on-year, while gross gaming revenue of 302.6m represented a 13.4% year-on-year decline, with the fall attributed to “the harsh local macroeconomic environment, fewer effective trading days and player winnings taxation”.
Tax changes implemented last year – imposing a flat 10% rate on all player winnings – had been a factor in OPAP’s share price falling by almost 20% in one day last September.
Lotto was the only product not to see double-digit year-on-year sales decline, rising 28.5% to 20m, while the 289.8m in sales from the operator’s core Stihima sports betting offering represented a year-on-year decline of 27%.
The financial results are the first to be published since the Greek government sold a 33% stake in the operator to Greek and Czech-backed fund Emma Delta for 652m.