OPAP S.A. Q2 2024 Financial Results

In their Q2 2024 financial results, OPAP S.A. (OPAP), a leading Greek gambling company, reported robust top-line performance, attributing significant growth to its online revenue, which now accounts for nearly 30% of group revenue. The company announced an interim dividend of EUR 0.60 per share and confirmed the continuation of its share buyback program.

During the earnings call, the company’s leadership expressed confidence in meeting the 2024 outlook and discussed various strategic initiatives, including the revamp of draw-based games and the performance of EuroJackpot. The company also touched on operational aspects in Cyprus and marketing expense expectations, while preparing for discussions regarding the renewal of the Hellenic Lotteries license.

Key Takeaways

• Online revenue hits a new record, contributing almost 30% to group revenue.
• Interim dividend announced at EUR 0.60 per share, payable in November.
• Share buyback program ongoing.
• Confidence expressed in meeting the 2024 outlook.
• EuroJackpot leads the revamp of draw-based games, with low teens of millions in GGR for Q2.
• iLottery and free-to-play games see increased penetration.
• Market share gains in the online sector and VLT productivity discussed.
• Impact of disposable income on business segments addressed.
• No changes to Cyprus gaming offer, but new opportunities explored with authorities.
• Marketing expenses expected to normalize in H2.
• Commitment to distributing the majority of net income as cash dividends reaffirmed.
• Discussions on the renewal of the Hellenic Lotteries license to begin soon.

Company Outlook

• OPAP remains optimistic about meeting end-of-year guidance.
• Further updates to be provided in the next earnings call.

Bearish Highlights

• No specific performance data for KINO provided for the current quarter.

Bullish Highlights

• Solid top-line performance with significant online revenue growth.
• EuroJackpot contributing to the revamp of draw-based games portfolio.

Misses

• The company did not provide detailed performance metrics for some segments.

Q&A Highlights

• CEO discussed market share gains and productivity in the online sector and VLTs.
• Impact of disposable income on business segments and EuroJackpot performance covered.
• No changes to the Cyprus gaming offer; discussions with authorities are ongoing.
• Marketing expense normalization expected in the second half of the year.
• Preparedness for discussions on the Hellenic Lotteries license renewal mentioned.

OPAP’s Q2 2024 earnings call revealed a company capitalizing on the growth of its online segment and innovating its product offerings. With the interim dividend announcement and share buyback program, the company demonstrates its commitment to shareholder returns. The discussions around the Cyprus gaming offer and the upcoming renewal of the Hellenic Lotteries license indicate strategic planning for future growth. OPAP’s leadership team remains available for further inquiries, signaling transparency and engagement with investors.

InvestingPro Insights

OPAP S.A.’s recent earnings report highlights a promising trajectory in its online revenue stream and a strong commitment to shareholder return through dividends and share buybacks. To provide further context to the company’s financial health and market position, let’s look at some key metrics and insights from InvestingPro.

InvestingPro Data:

• Market Cap: With a market capitalization of $6.42 billion, OPAP stands as a significant player in the gambling industry.
• P/E Ratio: The company’s price-to-earnings ratio stands at 14.06, suggesting that investors may find the stock reasonably valued based on its current earnings.
• Dividend Yield: A substantial dividend yield of 7.39% underscores OPAP’s commitment to returning value to shareholders, aligning with the interim dividend announcement of EUR 0.60 per share.

InvestingPro Tips:

• Analysts anticipate sales growth in the current year, which may reflect the robust online revenue figures OPAP reported for Q2 2024.
• OPAP has maintained dividend payments for 24 consecutive years, reinforcing the company’s reliability in providing shareholder returns.

For investors seeking a deeper dive into OPAP’s performance and future outlook, there are additional InvestingPro Tips available at InvestingPro. These tips include insights into the company’s gross profit margins, low price volatility, and analysts’ profitability predictions, all of which could be pivotal in making informed investment decisions.

Full transcript – Greek Org of Football Prognostics (GOFPY) Q2 2024:

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