OPAP Reports Record Revenue Following Successful 2023
LISTEN TO THIS ARTICLE:OPAP, the Greek gambling group, reported a record €2.08 billion in revenue for the 2023 financial year, a 7.7% increase from the previous year.
The growth was attributed to online expansion and consistent retail performance. The lottery was the largest revenue contributor, although live online casinos saw the largest growth with revenue up 26.2%.
Not All Smooth Sailing
It wasn’t an entirely smooth year. OPAP was hit with a €24.5 million fine from the Hellenic Gaming Commission for market abuse. However, CEO Jan Karas remained optimistic about the year's achievements, highlighting the strong fourth quarter, which also saw record revenues, primarily due to the focus on digital initiatives.
Looking at the revenue breakdown for 2023, the lottery generated €730.0 million, a 2.9% increase, while sports betting revenue was up 6.9% at €645.5 million. Revenue from video lottery terminals grew by 8.2% to €344.5 million, and instant games and passive revenue saw a 7.4% increase to €115.9 million. However, the most significant growth came from the online casino sector, which saw a 26.2% rise to €251.8 million.
Operating expenses increased across the board, with gaming revenue expenses up by 9.1% to €583.4 million, payroll costs rising 8.6% to €91.8 million, and marketing expenses growing 10.4% to €123.4 million. Other operating expenses saw a 17.5% increase to €198.5 million. This led to a pre-tax profit of €570.1 million, a 21.2% decrease from the previous year, and a net profit of €408.3 million, down 31.1%. EBITDA slightly declined by 0.8% to €730.0 million.
A Strong End to the Year
In the fourth quarter, OPAP saw revenue increase 7.5% to €581.2 million. Lottery revenue grew by 1.9%, sports betting by 12.4%, video lottery terminals by 3%, and online casino revenue by 25.7%. However, instant and passive game revenue dropped by 5.2%.
Despite reduced marketing spending, net profit for the quarter was significantly lower than the previous year, primarily due to a one-off profit in 2022 from the selling of Betano. EBITDA for the quarter, however, improved by 3.7% to €210.2 million.
OPAP has set its revenue expectations for 2024 between €2.15 billion and €2.20 billion, with EBITDA predicted to be between €750.0 million and €770.0 million.
Looking ahead, in line with our Fast Forward business strategy, we remain committed to further upgrading our proposition, securing sound growth and profitability, rewarding our shareholders and delivering on our sustainability and social responsibility objectives.
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