Greece’s 2nd Lockdown Cause Of OPAP SA’s Revenue Drop

OPAP SA, an Athens-based gaming company, recorded a 30 percentage decrease in sales to €1.12 billion in its full-year 2020 financial results.

OPAP announced that group Q4 sales fell by 50 percent to €230 million (Q42019: €446 million), owing to Greece’s second national lockout, which caused the company to shut two-thirds of its retail locations.

Location constraints

The lottery division of OPAP saw its full-year sales fell by 33 percent to €518 million, as the division was forced to stick to location constraints during the year. Meanwhile, OPAP VLTs saw a 30 percentage drop in FY2020 sales to €200 million, despite improvements to its retail infrastructure, as OPAP betting stations were required to run at a reduced volume.

Furthermore, owing to tough Q4 trading conditions, the firm’s summer traction in sports betting was washed out, with a 21 percentage drop from 2019.

Strengthened Online poker

Despite its COVID-related trading troubles, OPAP emphasised that 2020 had been a year of substantial group-wide financial growth, with positive net savings and the company’s online poker portfolio being improved.

Jan Karas, the CEO of OPAP, stated: “Although Q4 was yet another quarter disrupted by COVID-19, with retail closure and restrictions imposed for tackling the pandemic, OPAP has once again demonstrated substantial operational and financial readiness to mitigate the impact, through its diversified portfolio.

“At the same time, our investment in Kaizen Gaming, which operates the leading Stoiximan brand, has been concluded, our games portfolio has been further enhanced and our retail network partners have been supported efficiently.

“With confidence, we are pursuing the successful execution of OPAP’s new business strategy, the Fast Forward strategy, in order to deliver even better Gaming Entertainment to our customers.”

The group posted net income of €205 million in 2020, up 1.5 percent from 2019. The company reported substantial savings on selling agent fees, which were down 32 percent, as well as reduced marketing costs, which were down 10 percent.

Kaizen Gaming

In comparison, the inclusion of Kaizen Gaming’s Q4 earnings of €142 million into its end-of-year financial statements boosted net results.

Kaizen Gaming’s Stoiximan online gambling brand has been consolidated as an asset, accepted as of December 2 onwards, pending clearance from Athens and Cypriot competition courts.

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About Joe Kizlauskas

Joe is a seasoned iGaming copywriter and speaker who has been in the business since 2015. He's written more words on all elements of iGaming than he likes to remember, and he's contributed material to a number of well-known brands. Joe may be seen playing 5 a side, at the gym or playing games on his Playstation when he is not writing.