OPAP feels the bite of tax and economic burdens

Greek gaming operator OPAP’s core profitability continues to be negatively impacted by retroactive tax burdens and tough economic conditions.

The gaming giant reported the following financial highlights for the 12 month period ending December 31, 2017:

Gross gaming revenues down by 0.2 percent at Euro 1,397.6 million (FY 2015: Euro 1,399.7 million).

A drop of 18.4 percent in EBITDA amounted to Euro 307.5 million (2015: Euro 377.1 million), directly attributed to the 5 percent increase in tax contributions on gross gaming revenue which now total 35 percent.

A 19.2 percent decrease in net profit to Euro 170.2 million (2015: Euro 210.7 million).

Net gaming revenue was 8.4 percent down to Euro 573 million (2015: Euro 625.3 million).

A 21.9 percent rise in payroll expenses was directly attributed to the appointment of executive staff to implement and support new products. Payroll expenses amounted to Euro 56.2 million (2015: Euro 46.1 million).

By Sector:

Total sports betting revenues were Euro 397.2 million (Euro 412.0 million), a decrease of 3.6 percent.

Total lottery revenues were up by 1.4 percent to Euro 841.3 million (Euro 829.8 million).

Total revenues from Instant & Passives stood at Euro 159.1 million (2015: Euro 157.9 million).

“During 2016 I set out the company’s long-term ambition and the key strategic priorities and I am pleased with the progress that the OPAP team has achieved across many of the key initiatives,” Damian Cope, chief executive officer of OPAP, commented.

“Although there is still a long way to go I am confident that the successful delivery of our plans for 2017 will act as a major step forward in the achievement of our “2020 Vision”.

The board of directors will propose the distribution of a Euro 0.72 gross dividend for fiscal year 2016 at the company’s next AGM.