Greek Gaming Company OPAP Sees Revenue Rebound Following Slow Year

Posted on: August 31, 2022, 12:03h. 

Last updated on: September 1, 2022, 03:44h.

Greek operator OPAP has reported significant improvements in gaming revenue. From January to June 2022, the company recorded a profit of €570.1 million (US$573.3 million). This considerably increased by 57.7% compared to the first half of 2021.

OPAP Arena
Ongoing construction of OPAP Arena in a suburb of Athens, Greece. The name comes from Greek gaming operator OPAP, which started the year with a significant revenue improvement. (Image: News Bulletin 247)

The increase resulted from OPAP being fully operational this year and stronger demand. However, the company admitted that it faces overall weaker consumer dynamics.

Gross gaming revenue (GGR) in the second quarter of 2022 was €442.1 million (US$444.75 million), up 11.7% year on year. This, according to OPAP, reflects the strong performance of retail activities returning after COVID-19 shutdowns. It’s also the result of a considerable increase in online activity.

Net profit for the first half of 2022 was €167.3 million (US$168.27 million). Last year’s figure was €78.9 million (US$79.35 million), marking an increase of 111.9%.

Gross profit from gaming in the first half of the year jumped by 64.5% to €370.2 million (US$372.38 million). This was €145 million (US$145.87 million) more than last year, resulting from the increase in the GGR combined with higher profit margins.

Online Gaming Rebounds

In the second quarter, gross profit from gaming increased 12% compared to the same period last year. OPAP took in €181.2 million (US$182.2 million), a notable boost from the €161.7 million (US$162.59 million) last year.

Operating costs in the first half of 2022 amounted to €171.9 million (US$172.84 million), up 13.5% annually. Operating expenses in the second quarter were €83.3 million (US$83.76 million), a 4.9% year-on-year reduction.

The removal of COVID-19 restrictions was undoubtedly a significant factor in the improved results. However, Jan Karas, OPAP’s CEO, also saw other reasons the company performed better. He stated that it’s explored new growth areas while taking advantage of better customer management opportunities to improve the bottom line.

OPAP Builds Stadium

OPAP will continue to see its name in lights across Greece for years to come. Agia Sophia Stadium is a soccer arena under construction in Nea Filadelfeia, a northwestern suburb of Athens, Greece. But for the next few years, its common name will be OPAP Arena.

OPAP bought the naming rights to the stadium, home to Greece’s AEK Athens soccer team, in 2020. It was part of a larger project that included helping complete the team’s new stadium. OPAP paid €10 million (US$10.4 million) for the rights and is almost ready to hoist its name onto the building.

The final phase of construction, which has been ongoing since 2020, has faced delays because of COVID-19. At the start of the year, it looked like the stadium would be ready by September 15, but it’s not quite there. OPAP and AEK hope it will now be ready no later than October 1, when the team is scheduled to inaugurate its new home.