OPAP reported strong third quarter and nine-month results, with both group and company profitability further enhanced by the expected normalisation of operating expenses, reflecting the growth in gaming activity in the current period.
KEY FIGURES
Specifically, net profit in the first nine months of 2024 was €352.0 million (9M 2023: €307.7 million), up 14.4% year-on-year (or +5.6% on a recurring annual basis). Net profit in Q3 2024 amounted to €120.5 million (Q3 2023: €83.3 million), up 44.7% on a
year-on-year (or by 21.5% on a recurring annual basis), following the increase in EBITDA.
In addition, nine-month 2024 net revenues before contribution (GGR) stood at €1,648.3 million compared to €1,506.5 million in nine-month 2023, up 9.4% year-on-year, as a result of strong growth in the terrestrial (retail) business and a strong performance in online, which contributed 31% to the group's total revenues in Q3 2024. Q3 2024 GGR amounted to €565.8m, up 17.6% year-on-year, mainly driven by the Mega Jackpot in Joker and increased sports betting activity accompanied by strong performance in online casino.
Gross profit (gaming) in 9M 2024 increased 12.4% year-on-year to €692.5m (9M 2023: €616.1m), driven by higher revenues and strong margins. In Q3 2024, gross profit (from games) increased by 25.0% year-on-year to €241.9 million (Q3 2023: €193.5 million).
Operating expenses in the first nine months of 2024 amounted to €314.6 million compared to €299.0 million in the first nine months of 2023, up 5.2% year-on-year. Operating expenses in Q3 2024 decreased by 12.2% year-on-year to €100.6m (Q3 2023: €114.6m), confirming management's commitment to cost normalisation within the second half of the year.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) in the first nine months of 2024 increased by 12.9% year-on-year to €586.9m (9M 2023: €519.9m), or up 7.6% on a recurring annual basis. Q3 2024 EBITDA amounted to €213.2m (Q3 2023: €145.4m), up 46.6% year-on-year, or 23.8% on a recurring annual basis, due to strong revenue growth and operating expense containment.
OPAP has a strong cash position, according to the announcement, with net debt at €119.3m and a Net Debt/LTM EBITDA ratio of 0.15x (0.18x including leases). Strong profitability in the nine months to 2024 drives total EBITDA for the year towards the upper end of annual guidance.
At group level, pre-tax profit has been impacted by the €7,400k impairment of the Hellenic Lotteries S.A. concession license. In addition, the negative variance in the company's pre-tax profit is due to the €122,500k decrease in dividend income from its subsidiaries.
CEO STATEMENT
Jan Karas, CEO of OPAP, made the following statement on the Q3 2024 results:
"Following the strong performance in the first half of 2024, OPAP was able to achieve strong financial results in the third quarter. The most significant development in the quarter was the Joker Mega Jackpot, which led to increased activity in both the retail and online channels, as well as increased footfall in our stores. Positive trends also continued in sports betting across both channels, thanks to the rich sports calendar. In addition, online casino games maintained their momentum, playing an important role in the substantial growth of our online business.
Furthermore, strong profitability growth was recorded, mainly due to the expected normalization of operating expenses, which confirms our continued focus on the cost efficiency of our operations.
Overall, we remain confident that we are well positioned to deliver on OPAP's full-year financial and business objectives, as well as to achieve performance at the upper end of our 2024 guidance."
