Greek Organization Of Football Prognostics ((GOFPY)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for the Greek Organization Of Football Prognostics (OPAP) painted a picture of robust growth and strategic foresight, albeit with some concerns. The company showcased its strong performance in the first half of 2025, driven by strategic investments and significant growth in online segments. However, the call also highlighted investor concerns regarding reduced interim dividends and rising operating expenses.
6.5% Growth in First Half of 2025
OPAP reported an impressive 6.5% growth rate in the first half of 2025, underscoring the company’s strong performance and instilling confidence for continued success throughout the year. This growth reflects OPAP’s effective strategies and market positioning.
Strategic Investment in Stoiximan
A key highlight of the call was OPAP’s strategic investment of approximately EUR 200 million in Stoiximan. This move is aimed at creating sustainable value for shareholders and strengthening OPAP’s foothold in the online gaming market.
High Growth in Online Casino and Lottery
The online segments of OPAP’s business have shown remarkable growth, with the online casino segment experiencing a 22% year-over-year increase and the online lottery seeing a 30% rise. These figures highlight the successful expansion and consumer engagement in digital platforms.
VLTs and Instant & Passives Growth
OPAP’s VLTs recorded a 7% growth in the quarter, while Instant & Passives showed positive growth for the first time in two years, driven by new product initiatives. This marks a significant turnaround for these segments, contributing positively to the company’s overall performance.
Successful Interim Dividend Distribution
Despite a reduction in the interim dividend due to strategic investments, OPAP remains committed to distributing the bulk of net profits to shareholders. This approach reflects the company’s dedication to maintaining shareholder value while pursuing growth opportunities.
Reduction in Interim Dividend
The decision to lower the interim dividend, aimed at preserving funds for strategic investments, has raised some concerns among investors. However, this move is part of OPAP’s broader strategy to ensure long-term growth and sustainability.
Challenges in Predicting Joker Game Trends
While the revamped Joker game has contributed positively to OPAP’s performance, its future trends remain unpredictable. This unpredictability poses a challenge for maintaining consistent performance in this segment.
Increased Operating Expenses
OPAP anticipates continued growth in operating expenses, driven by higher payroll costs and IT investments. These rising expenses may impact margins, presenting a challenge for the company in maintaining its profitability.
Forward-Looking Guidance
Looking ahead, OPAP remains optimistic about its growth prospects. The company expects to maintain its EBITDA margin in the mid-30s, despite increasing operating expenses. The dividend policy continues to focus on distributing the bulk of net profits, with a minimum of EUR 1 dividend per share anticipated for the total 2025 fiscal year. Additionally, OPAP is advancing to the second phase of the international tender for the Hellenic Lotteries license, signaling further growth opportunities.
In summary, OPAP’s earnings call reflected a positive sentiment, driven by strong growth and strategic investments. While challenges such as reduced dividends and rising expenses were noted, the company’s forward-looking guidance suggests continued confidence in its growth trajectory. Investors can take heart in OPAP’s commitment to shareholder value and its strategic initiatives aimed at sustaining long-term success.