Igaming growth drives revenue up 8.2% at OPAP in Q1

OPAP’s Strategic Growth Amidst a Dynamic Gambling Landscape

In a resounding affirmation of the evolving gambling sector, OPAP, the prominent Greek lottery operator owned by Allwyn, has announced an impressive 8.2% year-on-year revenue increase for Q1, driven by remarkable growth in its iGaming and sports betting divisions.

During the three-month period ending on May 30, OPAP reported a gross gaming revenue (GGR) of €595.0 million ($677.6 million), surpassing the previous year’s figure of €549.7 million, although representing an 8.2% decrease from the €647.8 million recorded in Q4. This nuanced performance highlights the cyclical nature of the gambling industry, underlining the importance of strategic insight and adaptability.

Net revenue—a critical metric calculated as GGR minus regulatory levies and duties—reached €406.4 million, marking a 7.9% increase year-on-year. This robust financial outcome reflects OPAP’s ability to navigate regulatory landscapes while capturing market opportunities.

Strong performance was evident across nearly all of OPAP’s core operating segments in Q1. Notably, the iGaming division emerged as the standout performer with a remarkable 19.8% revenue growth. While sports betting also contributed positively, the lottery sector remains the cornerstone of OPAP’s revenue composition.

“The encouraging momentum of Q1 has solidified our confidence in achieving our 2025 targets,” remarked Jan Karas, OPAP’s CEO. “Organic growth, particularly through our online platforms, is a testament to our strategic direction.”

The burgeoning success of OPAP can be attributed to several key factors, including thriving sports betting engagements and favorable jackpot rollovers within the Tzoker lottery. The launch of the OPAP Store App has also revolutionized the customer experience, utilizing digital tools to enhance engagement through personalized loyalty programs.

iGaming Dominates Online Revenue: Q1 Insights

Examining OPAP’s performance in greater detail, the iGaming sector reported a striking 19.8% revenue surge to €84.9 million. This growth underscores a significant boost in player engagement and spending, further solidifying iGaming’s pivotal role within OPAP’s operational framework.

In fact, iGaming constituted 48.1% of OPAP’s online revenue during Q1, outpacing sports betting, which accounted for 45.0%, while the lottery represented 6.9%. The competitive landscape necessitates constant innovation and customer-centric strategies to maintain and grow these segments.

Specifically, the sports betting division experienced a commendable 12.8% rise in revenue, totaling €190.0 million. This figure included €79.0 million from online platforms and €111.0 million from retail operations. OPAP benefitted from advantageous outcomes in January and February, reinforcing the need for timely market responsiveness.

The lottery segment also maintained momentum, with a 5.5% increase in revenue, amounting to €206.8 million. This growth was fueled by a record-breaking Tzoker jackpot of €19.5 million, contributing to retail operations, which dominated with 94.2% of total lottery revenue during the quarter.

While OPAP’s video lottery terminals experienced a modest 1.5% revenue growth to €87.8 million, the instant and passives segment faced challenges, witnessing a 7.9% decline to €25.6 million—a trend that warrants careful reevaluation and innovative solutions moving forward.

Net Profit Climbs to €126.4 Million: Financial Performance Overview

Turning to the broader financial landscape, OPAP experienced an uptick in expenses across multiple areas during the quarter. Nevertheless, revenue growth catalyzed an 8.8% increase in EBITDA to €207.1 million. Following depreciation and amortization, operating profit reached €173.1 million, reflecting a 10.3% year-on-year improvement.

Pre-tax profits also saw a positive trajectory, rising 9.8% to €171.0 million, while OPAP accounted for €44.6 million in income tax, culminating in a net profit of €126.4 million—an encouraging 9.2% increase.

“Our commitment to customer-centric strategies remains paramount as we aim to deliver engaging experiences across both retail and online platforms,” stated Karas. “Leveraging Allwyn’s strengths enables us to offer unparalleled opportunities, positioning us favorably to meet our growth and social responsibility goals.”

Overall, OPAP’s Q1 results bolster its aspirations for sustained growth, profitability, and value generation for its shareholders, showcasing its adaptability in a competitive and rapidly evolving gambling industry.