Organization of Football Prognostics S.A. (OPAP) Q2 2024 earnings summary

Executive summary

• Delivered strong top-line growth in H1 2024, with online revenues reaching a record 30% of group revenues and retail showing resilience, both boosted by Euro 2024, which contributed nearly 25% to sports betting GGR.

• EBITDA margin sustained at 35% in H1 2024, with net profit up 3.2% to €232m and robust cash position; Net Debt/LTM EBITDA at 0.26x.

• Interim dividend of €0.60 per share to be paid in November 2024, with an ongoing share buyback program and €233m dividends distributed in H1.

• 15-year exclusive concession agreement signed with Cyprus for lottery games, reinforcing market position and recognizing a €72.5m intangible asset.

• Profit for the period increased 3.6% year-over-year to €237.0m, while EBITDA was stable at €373.7m, reflecting higher operating expenses.

Financial highlights

• Q2 2024 revenues (GGR) rose 7.0% year-over-year to €533m, with online GGR up 33.5% and retail stable.

• H1 2024 revenues (GGR) up 5.6% year-over-year to €1,083m; EBITDA at €376m (+0.1% like-for-like, excluding one-offs).

• Net profit margin at 21.4% in H1 2024; gross profit margin at 42% in Q2.

• Online segment grew 33% in the second half, with Euro 2024 driving significant activity and retention across verticals, especially casino.

• Draw-based games portfolio revenues grew 40% year-over-year, led by Eurojackpot and Tzoker.

Outlook and guidance

• Confident in delivering 2024 guidance, with continued focus on digital strategy, innovation, and customer-centricity.

• Marketing expenses expected to normalize in H2 after being front-loaded in H1 for product launches and Euro 2024.

• Dividend policy remains unchanged, with commitment to distribute all net profit as dividends.

• Online gaming remains the key growth driver, with ambitions to become the #1 online operator in Greece.

• Retail initiatives include establishing Eurojackpot and enhancing digital customer journeys.