New investments delivering strong Q3 performance
ATHENS, Greece – OPAP S.A. (OPAr.AT, OPAP:GA), the leading gaming operator in Greece, announces its consolidated financial results for the nine month period ended September 30th, 2017, prepared in accordance with International Financial Reporting Standards (IFRS).
Revenues (GGR) increased by 4.8% at €1,045.8m (9M 2016: €998.0m). Q3 2017 GGR increased by 11.9% at €357.4m (Q3 2016: €319.2m), on the back of strong growth in betting and increasing VLTs contribution.
EBITDA at €223.5m (9M 2016: €223.8m) & Q3 2017 EBITDA at €92.9m up by 49%. After adjusting for the reversal of litigation provisions of €14.7m that boosted Q3 2017 numbers, as well as €6.4m of one-off VLT arbitration related costs that hurt Q3 2016, Q3 2017 EBITDA came in at €78.1m higher by 13.6% y-o-y. The reported growth came in despite development expenses linked with the implementation of several new projects.
Net Profit at €109.0m (9M 2016: €115.1m) lower by 5.3% & Q3 2017 net profit at €48.1m higher by 64.1%. Adjusted Net profit in Q3 2017 reached €37.6m (adjusted Q3 2016 at €33.8m).
Strong financial position, with Net Debt at €234.5m
5,297 installed VLTs at the end of Q3 with rollout picking up pace in Q4, 698 installed SSBTs and solid performance of virtual games
Technology transformation of core gaming platforms continuing.
Proposed distribution of retained earnings amounting to €0.70 per share
|(€ ‘m)||Q3 2017||Q3 2016||% Δ||9M 2017||9M 2016||% Δ|
|Amounts wagered *||1,088.1||975.3||11.6||3,213.6||3,044.1||5.6|
|GGR (Gross Gaming Revenue)||357.4||319.2||11.9||1,045.8||998.0||4.8|
|Payout (%) *||68.7 %||67.3 %||68.3 %||67.2 %|
|NGR (Net Gaming Revenue)||148.5||131.0||13.4||433.7||409.0||6.0|
|EBITDA margin||26.0 %||19.5 %||21.4 %||22.4 %|
|Net profit margin||13.5 %||9.2 %||10.4 %||11.5 %|
|EPS (in €)||0.1513||0.0920||64.5||0.3429||0.3613||(5.1)|
* excl. VLTs
OPAP’s revenues (GGR) in 9M 2017 increased by 4.8% to €1,045.8m versus €998.0m in 9M 2016. Revenues in Q3 2017 increased by 11.9% at €357.4m compared to €319.2m in the respective period last year due to the solid performance of betting products, VLTs contribution and favorable y-o-y Joker comparison.
Net Gaming Revenue1
NGR increased by 6.0% to €433.7m versus €409.0m in 9M 2016, closely following GGR trends, with Q3 2017 rising by a stronger 13.4% y-o-y at €148.5m
EBITDA stood at €223.5m in 9M 2017 from €223.8m in 9M 2016, roughly unchanged y-o-y despite the expenses linked with the implementation of several new projects. Q3 2017 EBITDA increased at €92.9m from €62.3m in Q3 2016, higher by 49.0%; after adjusting for both the reversal of litigation provisions of €14.7m in Q3 2017, as well as one-off VLT costs of €6.4m mostly related to arbitration that hurt Q3 2016 results, Q3 2017 EBITDA reached €78.1m higher by 13.6% y-o-y.
Net profit in 9M 2017 at €109.0m, decreased by 5.3% vs. €115.1m in 9M 2016. Adjusted net profit in Q3 2017 came in at €37.6m compared to €33.8m in Q3 2016.
Comment of OPAP’s CEO, Mr. Damian Cope on Q3 2017 financial results:
“After a solid first half of the year, Q3 marked a return to meaningful growth in both revenues and profitability for OPAP. This growth was primarily driven by a strong performance from our portfolio of Betting products, including SSBTs and Virtuals, and an increased contribution from VLTs.
Notwithstanding the increasing pressures on our customers’ disposable income, OPAP is demonstrating that it can offer a broad range of attractive, gaming entertainment experiences. We continue to invest heavily in our products, our technology and our people in the delivery of our 2020 Vision and further progress has been made in each of our 8 strategic objectives. These results are already demonstrating the early benefits of these investments and are also testament to the hard work and contributions from everyone in the OPAP team, both our employees and our agents.
We have also been intensifying our efforts in the important areas of corporate and social responsibility, including further investment in responsible gaming policies and programmes, while also working closely with the authorities in the battle against illegal gaming.
Looking forward, we have a particularly busy few months ahead with a number of important milestones for both our technology migrations and product rollouts, but remain confident that we will deliver on our objectives for FY17 and beyond.”
You can find the full report here