As the Athens-listed gambling group continues to side with caution in guiding all operating units towards business normality, OPAP SA has posted a stable Q3 2020 trading period.
OPAP posted a slight 0.7 percent decrease in group revenue to EUR 391 million when it published its Q3 2020 trading update for the three-month period ended 30 September, powered by the strong comeback of its sports betting and VLT units.
Improved Q3 trading operation saw a 14 percent rise in the GGR betting community to EUR 105 million (Q3 2019: EUR 92 million), with VLT sales rising by 10 percent to EUR 80 million (Q3 2019: EUR 73 million).
OPAP’s corporate results, however, continues to be driven by GGR lottery declines of 9 percent to EUR 179 million (Q3 2019: EUR 197 million), as the company’s lottery network suffers from a fractured retail reopening, resulting in a substantial reduction in customer footfall.
As a result of the downturn of the OPAP lottery network, year-to-date community revenues reached EUR 899 million, a fall of 23 percent compared to the corresponding EUR 1,17 billion in YTD 2019.
OPAP, mitigating Covid headwinds, highlighted a range of well-timed containment steps undertaken to reduce the operating costs of the YTD community by 5 percent to EUR 182 million. As a result the company announced a decrease in YTD marketing expenses of 20 percent, which dropped to EUR 35 million.
YTD EBITDA stands at EUR 207 million, down 31 percent from EUR 305 million in 2019. OPAP noted, however, that its Q3 EBITDA estimates, amounting to EUR 105 million, matched those posted in 2019. This was attributed by the betting community to its decision to secure cost efficiencies and increased contribution from Kaizen Gaming.
On the companies performance, Jan Karas, Acting CEO of OPAP, commented: “Our Q3 results demonstrate our ability to ensure operational readiness during unfortunate times and deliver healthy results upon the lift of lockdown measures.
“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.”