OPAP – Positive Q4 performance provides strong finish to 2017
ATHENS, Greece – March 27, 2018 – OPAP S.A. (OPAr.AT, OPAP:GA), he leading gaming operator in Greece, announces its consolidated financial results for the fiscal year ended December 31st, 2017, prepared in accordance with International Financial Reporting Standards (IFRS).
Revenues (GGR) higher by 4.1% at €1,455.5m (FY 2016: €1,397.6m). GGR in Q4 2017 increased by 2.5% at €409.7m (Q4 2016: €399.6m), on the back of substantial betting growth and increasing VLTs contribution.
FY 2017 EBITDA at €306.5m (FY 2016: €307.5m) and Q4 2017 EBITDA at €82.9m (Q4 2016: €83.7m). After adjusting for one-off expenses linked with our IT systems implementation, Q4 2017 EBITDA came in at €90.0m, higher by 7.5% y-o-y.
Net Profit at €126.2m (FY 2016: €170.2m) lower by 25.9% y-o-y & Q4 2017 net profit at €17.2m lower by 68.8% y-o-y. Adjusted for non-recurring one-off items net profit in Q4 2017 reached €40.0m.
Strong financial position, with Net Debt at €436.2m.
More than 4,700 VLTs installed in Q4, making a total of 10,007 at the end of 2017 and number of SSBTs more than doubled during Q4, reaching a total of c.1,400 machines.
Technology transformation of core gaming platforms continuing well, with online sports betting relaunch expected before the World Cup.
Remaining gross DPS at €0.30 which together with the already paid €0.10 interim dividend leads to a total DPS of €0.40, on top of the €0.70 per share distribution in Q4 2017.
|(€ ‘m)||Q4 2017||Q4 2016||%Δ||FY 2017||FY 2016||%Δ|
|GGR (Gross Gaming Revenue)||409.7||399.6||2.5||1,455.5||1,397.6||4.1|
|NGR (Net Gaming Revenue)2||274.8||266.3||3.2||972.9||930.8||4.5|
|Gross Profit (from gaming operations)3||156.6||155.5||0.7||564.7||546.2||3.4|
|Net profit margin||4.2%||13.8%||8.7%||12.2%|
1 excl. VLTs
2 GGR-GGR contribution
3 NGR-Agents’ commission-other NGR related commission
OPAP’s revenues (GGR) in FY 2017 increased by 4.1% to €1,455.5m versus €1,397.6m in FY 2016. Revenues in Q4 increased by 2.5% y-o-y due to the solid performance of betting products & VLTs contribution only partially counterbalanced by the lack of favorable Joker jackpot rollovers.
Gross Profit (from gaming operations)1
Gross Profit from gaming operations in FY 2017 increased by 3.4% to €564.7m versus €546.2m in FY 2016. Q4 gross profit increased by 0.7% y-o-y as NGR related commission (linked to revenue sharing agreements), increased by €4.9m or 61% for the quarter, while key new projects (i.e. VLTs) have not yet reached critical revenue scale.
EBITDA decreased by 0.4% to €306.5m versus €307.5m in FY 2016, staying only marginally lower y-o-y despite the concurrent implementation of several large scale projects. Q4 2017 EBITDA declined by 1.0% compared to Q4 2016 figure at €82.9m versus €83.7m; after adjusting for one-off costs of €7.1m, Q4 2017 EBITDA reached €90.0m higher by 7.5% y-o-y.
Net profit in FY 2017 at €126.2m, decreased by 25.9% vs. €170.2m in FY 2016. Adjusted net profit in Q4 2017 came in at €40.0m compared to €55.1m in Q4 2016.
Comment of OPAP’s CEO, Mr. Damian Cope on the Q4 and FY 2017 financial results:
“2017 was a particularly busy year in terms of the overall level of change that OPAP underwent. Beginning with the new partnership agreement that we signed with our agents in Q1 we managed to successfully implement a number of new initiatives that will each act as solid foundations for the long–term benefit of the company and ensure the delivery of our 2020 Vision. Our solid Q4 performance also provides strong evidence towards an expectation of a return to meaningful revenue growth in 2018 and beyond. In line with Q3 trends, we saw notable increases from Betting products, including Virtuals & SBBTs, and a steadily growing contribution from VLTs.
Despite the macroeconomic challenges in Greece that continue to affect the disposable income, our focus remains on expanding our customer base, investing in our network and consistently offering an entertaining gaming experience.
During 2017 we also increased our commitment to society both within the area of responsible gaming and via our award-winning, social responsibility programme.
Looking ahead to 2018, and while we will continue with our important technology and product roll-outs, notably VLTs and SSBTs, we will also be launching our new sportsbetting platforms – both OTC and online. Along with our customers we are looking forward to the highlight of the football calendar, the 2018 World Cup in Russia.
Finally I would like to thank every member of the OPAP team, our partners, supporters and suppliers, for their hard work and support in the successful delivery of our 2017 results.”
For further information regarding OPAP’s consolidated financial results for the fiscal year ended December 31th, 2017, please see here: