OPAP H1 revenues down as online talks commence
Greek monopoly sees gambling activity down across the board " online JV agreement with GTECH G2 draws closer.
Greek operator OPAP has experienced a 6% drop in revenues in the past six months compared to the same period last year, as it enters negotiations with GTECH G2 to plan for its expansion into online gaming later this year, the company has announced in its interim results for the six months ended 30 June.
Having announced plans to launch online gaming and to expand its services into a number of regulated earlier this year, and confirmed the selection of GTECH G2 last month, OPAP said in its H1 2012 statement that it was “ready to commence negotiations with the preferred partner aiming to the signing of a JV agreement”.
However it pointed out that: “The company retains the right to examine its alternative options with the remainder of the contenders if negotiations prove inconclusive. In any case, precautions have been considered, safeguarding the interests of a strategic investor emerging from a potential privatisation process.”
A boost in revenues from the Euro 2012 football tournament, which saw an 18% rise in profits in the second quarter, was unable to counteract the country’s harsh economic conditions, as first-half revenues fell to 2.05bn compared to 2.19bn in H1 2011.
The monopoly operator said its results reflected resilience in harsh economic environment during the first half of the year, with Greece continuing to face widespread austerity cuts and high unemployment.
OPAP saw revenues decline across all forms of gambling, with sports betting income down by 5.2% to 829.4m in H1 2012 from 874.8m in H1 2011, and a significant decline in monitor games revenue of 19.8%.
The results are the first since appointed former finance minister Constantinos Louropoulos as its new chairman and CEO earlier this month. Louropoulos is tasked with boosting the decline in revenues, initially by driving the operator’s plans to launch an online business.
Meanwhile the Greek government is still planning to sell off a 29% stake in the monopoly leaving it owning just 5%, with the proceeds set to go towards paying off the country’s mounting debt. The stake is thought to be worth around 1bn.