OPAP’s financials remain on track despite macro uncertainty and GGR contribution hike
ATHENS, Greece – March 29, 2017 – OPAP S.A. (OPAr.AT, OPAP:GA), the leading gaming operator in Greece, announces its consolidated financial results for the fiscal year ended December 31th, 2016, prepared in accordance with International Financial Reporting Standards (IFRS).
- Revenues (GGR) down by a marginal 0.2% at €1,397.6m (FY 2015: €1,399.7m), remaining resilient amidst an unstable macro environment. Revenues in Q4 2016 followed the same trend, lower by 0.5% at €399.6m, with Sports betting and Instant & Passives recording a mild growth and Lotteries standing lower by 3.1%
- EBITDA down by 18.4% at €307.5m (FY 2015: €377.1m), on the back of the material increase of GGR contribution at 35%. On an adjusted basis, EBITDA for the full year reached €365.1m down by a much lower 3.2%. Q4 2016 EBITDA reached €83.7m, lower by 19.2% y-o-y hit by the aforementioned GGR contribution increase as well as expenses linked with the gradual implementation of the new projects.
- Net Profit came in at €170.2m (FY 2015: €210.7m). Net profit in Q4 2016 increased by 6.7% to €55.1m (Q4 2015: €51.7m) due to both a lower effective tax rate for the quarter and the Q4 2015 €15m impairment of the Hellenic Lotteries license that burdened last year’s results.
- Solid cash position of €273.5m
- Remaining gross DPS at €0.60 which together with the lready paid €0.12 interim dividend leads to a total DPS of €0.72.
|(€ ‘m)||Q4 2016||Q4 2015||%Δ||FY 2016||FY 2015||%Δ|
|GGR (Gross Gaming Revenue)||399.6||401.7||(0.5)||1,397.6||1.399,7||(0.2)|
|NGR (Net Gaming Revenue)||162.1||179.0||(9.4)||573.0||625.3||(8.4)|
|Net profit margin||13.8%||12.9%||12.2%||15.1%|
Revenues (GGR) in FY 2016 decreased by 0.2% to €1,397.6m versus €1,399.7m in FY 2015. Revenues in Q4 2016 reached €399.6m down by 0.5% in the respective period last year, on the back of lower figures in Lotteries almost counterbalanced by growth in the sports betting and Hellenic Lotteries segments.
Net Gaming Revenue (NGR)
NGR decreased by 8.4% to €573.0m versus €625.3m in FY 2015 due to the increased by 5 p.p. GGR contribution. After adjusting for the aforementioned GGR contribution surge NGR marked a slight 0.8% increase standing at €630.6m. NGR in Q4 2016 reached €162.1m down by 9.4% y-o-y, while after adjusting for the GGR contribution increase, NGR came in at €178.3m, lower by just 0.4% y-o-y.
EBITDA at €307.5m in FY 2016 from €377.1m in FY 2015, down by 18.4% y- o-y. On an adjusted basis, EBITDA came in at €365.1m marking a smaller 3.2% annual decline. EBITDA in Q4 2016 reached €83.7m vs. €103.6m in Q4 2015, while the adjusted figure reached €99.9m, lower by just 3.6% y-o-y.
Net profit in FY 2016 came in at €170.2m, decreased by 19.2% vs. €210.7m in 2015. Net profit in Q4 2016 increased by 6.7% at €55.1m; it is noted that Q4 2015 results took a hit by a €15m license impairment, while Q4 2016 enjoyed a lower effective tax rate.
Comment of OPAP’s CEO, Mr. Damian Cope on FY 2016 financial results:
“Despite the ongoing economic challenges, which were reflected in the GDP contraction in Q4, OPAP’s performance in FY 2016 was in line with our expectations. GGR remained broadly stable for the year and although we were heavily burdened by the increased GGR contribution rate to the Hellenic Republic, our underlying financial performance remained solid.
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.
2017 will be a year of unprecedented levels of change for OPAP and we have started well. The year began with the smooth deployment of the first VLT machines in our new ‘Play’ Gaming Halls. We also concluded agreements with our new technology partners and work on this transformation programme is well underway. More recently we successfully launched a retail common bond and finalised a new contractual relationship with our agent network.
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”.
For further information regarding OPAP’s consolidated financial results for the fiscal year ended December 31th, 2016, please see the attached PDF