OPAP Reports 5.6% Revenue Growth Driven by Online Casino Expansion in H1

Strong Performance in H1 2024

OPAP’s group revenue for the first six months of 2024 reached €1.08bn, up from €1.03bn in the same period last year.

While the operator’s traditional lottery and betting divisions remained key revenue drivers, the standout performer was the online casino segment, which saw a 24.2% year-on-year increase.

The company attributed this rise to higher player engagement and record levels of game penetration. Online casino activities generated €140.3m, accounting for 13.0% of OPAP’s total revenue in H1.

Growth Across Key Divisions

OPAP’s lottery division, which continues to be its largest revenue source, recorded €373.1m, reflecting a 1.8% year-on-year increase.

The draw-based games such as Lotto, Tzoker, and Eurojackpot were identified as the primary contributors to this steady growth.

Sports betting also showed solid performance, with a 9.2% rise in revenue to €350.1m.

This included a notable 20.5% jump in online betting revenue to €149.6m, while land-based betting grew more modestly by 2.0%, reaching €200.5m. Video lottery terminal (VLT) revenue was up slightly by 0.6%, totaling €166.5m.

However, OPAP experienced challenges in its instant and passives segment, which saw a 12.8% decline in revenue to €52.5m, due in part to weaker performances in scratchcards and Laiko games.

Increased Costs Affect Operating Profit

Despite the revenue growth, OPAP faced rising costs during H1, including a 10.0% increase in payroll expenses, a 34.3% surge in marketing costs, and a 7.0% rise in other operational expenses. Gaming-related costs increased by 1.3% to €289.6m.

These higher expenditures led to a 0.8% decline in operating profit, which fell to €307.3m.

Nonetheless, the group benefited from €8.2m in net financial income, helping to offset some of the impact from the higher costs.

As a result, OPAP reported a pre-tax profit of €315.3m, representing a 3.5% year-on-year increase.

Net Profit and Q2 Trends

After paying €78.3m in taxes and accounting for €5.4m in non-controlling interests, OPAP achieved a net profit of €237.0m for H1 2024, reflecting a 3.6% rise compared to the previous year. However, EBITDA dropped marginally by 0.2% to €373.7m.

The second quarter of 2024 followed a similar growth trajectory. Group revenue increased by 7.0% to €532.8m, with online casino revenue climbing 19.6% to €69.4m and betting revenue up 19.7%, benefiting from the start of the Euro 2024 tournament. However, lottery revenue declined by 0.3%, and VLT revenue dipped by 1.2%.

For Q2, OPAP posted a net profit of €118.2m, up 11.1%, and reported a 3.0% increase in EBITDA, which reached €183.4m for the quarter.