OPAP Earnings Call: Strong Growth Amid Licensing Concerns

Greek Organization Of Football Prognostics ((GOFPY)) has held its Q1 earnings call. Read on for the main highlights of the call.

The latest earnings call from the Greek Organization Of Football Prognostics (OPAP) painted a predominantly positive picture, with strong growth reported in both online and retail sectors. The call highlighted significant achievements, including a record-breaking jackpot and increased market share in the online segment. Despite these successes, there were concerns about future licensing and concession negotiations. However, the positive performance metrics seemed to overshadow the uncertainties in the licensing domain.

Strong Growth in Online and Retail Sectors

OPAP experienced solid organic growth in the first quarter of 2025, driven by strong momentum in its online and robust retail sectors. The company saw a notable boost from Sportsbetting and iGaming, which contributed significantly to its overall performance. This growth underscores OPAP’s ability to capitalize on the increasing demand for digital gaming experiences.

Record-Breaking Jackpot Achievement

In January, OPAP’s Tzoker game achieved a record-breaking jackpot, which significantly bolstered the company’s performance in the lottery segment. This achievement not only highlights the popularity of the Tzoker game but also reflects OPAP’s strong position in the lottery market.

Online Market Share Increase

OPAP reported a remarkable 20% growth in its online segment, outpacing the market’s mid-teens growth. This impressive performance indicates an increase in market share, showcasing OPAP’s competitive edge and strategic positioning in the online gaming industry.

Lottery Revenue Growth

The lottery segment recorded a 5.5% year-over-year increase in Gross Gaming Revenue (GGR), with a 34% revenue growth and a 14% increase in online players. This growth reflects the effectiveness of OPAP’s strategies in enhancing player engagement and expanding its customer base.

Positive VLT Refurbishment Impact

OPAP’s initiative to refurbish Video Lottery Terminal (VLT) cabinets is showing positive revenue impacts, supporting the company’s continuous improvement strategy. This refurbishment is part of OPAP’s broader efforts to enhance the gaming experience and drive revenue growth.

Uncertain Future in Licensing Tenders

There is uncertainty regarding the renewal of the Hellenic Lotteries license and the timing and outcome of upcoming tenders. This uncertainty poses a potential challenge for OPAP, as it could impact future operations and revenue streams.

Lack of Progress on Legacy Concession Negotiations

No feedback or progress has been reported on initiating early negotiations for the legacy concession that expires in 2030. This lack of progress could have long-term implications for OPAP’s strategic planning and operational stability.

Forward-Looking Guidance

In its Q1 2025 financial results conference call, OPAP reported strong performance driven by solid organic growth, particularly in the online and retail sectors. The company expressed confidence in maintaining this momentum throughout 2025, supported by sports betting and iGaming. Additionally, OPAP addressed its dividend policy, aiming to distribute the bulk of net profits with a minimum dividend of EUR 1 per share. While a share buyback program was approved, large-scale initiation was not planned at this time.

In conclusion, OPAP’s earnings call reflected a strong performance with significant growth in key areas, despite some uncertainties in licensing and concession negotiations. The company’s strategic initiatives and robust market positioning are expected to sustain its growth trajectory, making it an attractive prospect for investors interested in the gaming industry.