OPAP S.A. - 1st quarter Interim Management Statement
2024
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TABLE OF CONTENTS
B. Main developments during the first quarter of 2024 and their effect on the interim management
1. Statement of Financial Position | 10 |
2. Income Statement & Statement of Comprehensive Income | 11 |
3. Statement of Changes in Equity | 12 |
3.1. Consolidated Statement of Changes in Equity | 12 |
3.2. Separate Statement of Changes in Equity | 13 |
4. Cash Flow Statement | 14 |
E. Notes on the interim management statement | 15 |
1. Borrowings | 15 |
2. Revenue from non-gaming activities | 15 |
3. Payroll expenses | 16 |
4. Marketing expenses | 16 |
5. Other operating expenses | 17 |
6. Subsequent events | 17 |
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800
[Strictly Confidential]
OPAP S.A. - 1st quarter Interim Management Statement 2024
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A. Financial progress and performance of reporting period
Financial Performance
The Group's key financial figures are presented below:
(Amounts in thousands of euro) | 01.01- | 01.01- | Δ % | |||||
31.03.2024 | 31.03.2023 | |||||||
Revenue (GGR) | 549,698 | 527,445 | 4.2% | |||||
GGR contribution and other levies and duties | (173,200) | (163,956) | (5.6%) | |||||
Net gaming revenue (NGR) | 376,498 | 363,489 | 3.6% | |||||
Profit before interest, tax, depreciation and amortisation | 190,292 | 196,459 | (3.1%) | |||||
(EBITDA) | ||||||||
Profit before income tax | 155,651 | 161,172 | (3.4%) | |||||
Profit for the period | 115,751 | 120,636 | (4.0%) | |||||
Net increase/(decrease) in cash and cash equivalents | ||||||||
Net cash inflow from operating activities | 107,723 | 143,727 | (25.1%) | |||||
Net cash outflow from investing activities | (6,523) | (4,498) | (45.0%) | |||||
Net cash outflow from financing activities | (35,166) | (102,742) | 65.8% | |||||
The Company's key financial figures are presented below: | ||||||||
(Amounts in thousands of euro) | 01.01- | 01.01- | Δ % | |||||
31.03.2024 | 31.03.2023 | |||||||
Revenue (GGR) | 365,147 | 353,129 | 3.4% | |||||
GGR contribution and other levies and duties | (112,001) | (107,365) | (4.3%) | |||||
Net gaming revenue (NGR) | 253,147 | 245,764 | 3.0% | |||||
Profit before interest, tax, depreciation and amortisation | 155,027 | 157,600 | (1.6%) | |||||
(EBITDA) | ||||||||
Profit before income tax | 125,690 | 129,628 | (3.0%) | |||||
Profit for the period | 97,381 | 100,562 | (3.2%) | |||||
Net increase/(decrease) in cash and cash equivalents | ||||||||
Net cash inflow from operating activities | 110,028 | 122,992 | (10.5%) | |||||
Net cash outflow from investing activities | (2,824) | (9,938) | 71.6% | |||||
Net cash outflow from financing activities | (44,238) | (103,400) | 57.2% | |||||
In Q1 2024, the Group and the Company achieved a strong financial performance in terms of Revenue (GGR) and Net gaming revenue (NGR), both increased compared to the previous period. This increase reflects the ongoing trend of the organic growth within the Group which has been primarily driven by the strong results of the online and VLT operations (+15.6% and +2.5% respectively in GGR) and the constant resilience of the retail sector.
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800
[Strictly Confidential]
OPAP S.A. - 1st quarter Interim Management Statement 2024
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Despite the observed increase in gaming activity during the period, the financial performance of both the Group and the Company has not adequately reflected this trend. In terms of EBITDA, the variations are presented negative due to higher operating expenses, in particular front-loaded marketing expenses, to support recent launch of Eurojackpot and revamp of Lotto and Tzoker as well as higher payroll and other operating expenses.
As far as the cash flows are concerned:
- the cash inflows from operating activities demonstrate the strong operating profitability, however they are decreased compared to the previous period, mainly due to the increased income tax payments made by both the Group and the Company within 2023, as a result of the increased taxable income of the year 2022 compared to 2021.
- the significant variation in cash outflows from financing activities is attributed to a repayment of a loan of € 100,000 th. that the Company proceeded during the Q1 2023 and the acquisition of treasury shares of € 31,752 th. during the Q1 2024 based on the prevailing share Buy-back programme.
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800
[Strictly Confidential]
OPAP S.A. - 1st quarter Interim Management Statement 2024
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B. Main developments during the first quarter of 2024 and their effect on the
interim management statement
Developments regarding Greek horse races
On 30.01.2024, HORSE RACES SINGLE MEMBER S.A., after having informed all parties involved, proceeded to the cessation of the organization and conduct of Greek horse races, following its release, pursuant to article 3.1 (ix) of the 24.04.2015 Concession Agreement, from the relevant obligation, given that the number of the registered horses with the Greek Jockey Club has fallen and consistently remains below 300 on average for the last two consecutive Concession Years (2022 and 2023). In addition, on the above date, HORSE RACES SINGLE MEMBER S.A. exercised its contractual right to terminate the 24.04.2015 Lease Agreement of Markopoulo Racecourse. The leasehold was delivered to the lessor ODIE S.A. under special liquidation on 01.04.2024.
Regarding the above developments, it is noted that HORSE RACES SINGLE MEMBER S.A., from 2016 and onwards, has made every reasonable and best effort for the revival and development of the Greek horse racing activity, which already before the time of its takeover by the company had fallen into an extremely precarious situation. However, despite the significant and long-term efforts of HORSE RACES SINGLE MEMBER S.A. and its continuous major investments (amounting to dozens of millions of euros), by far exceeding the contractual obligations of the company, Greek horse races and mutual betting on Greek races kept declining significantly, thus leading eventually to an irreversible situation, as evidenced by the dramatic decline in the number of registered horses with the Greek Jockey Club. In that context, despite the above efforts of the company, Greek horse races steadily remained a hugely loss-making and unsustainable business.
It is noted that the activity of HORSE RACES SINGLE MEMBER S.A. in relation to the provision of mutual betting on foreign horse races is not affected by the above developments and normally continues, under the 24.04.2015 Concession Agreement, which the company strictly adheres to.
Finally, the financial impact of the abovementioned events was incorporated into the 2023 Group Financial Statements.
Financing
Issuance of bond loan of TORA DIRECT SINGLE MEMBER S.A.
TORA DIRECT SINGLE MEMBER S.A., according to the meeting of its Board of Directors dated 26.02.2024, resolved on the issuance of a common bond loan of € 9,000 th., divided to 9,000 bonds of € 1,000 each. OPAP S.A. subscribed for the whole amount of € 9,000 th..
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800
[Strictly Confidential]
OPAP S.A. - 1st quarter Interim Management Statement 2024
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Loan prepayment
On 12.01.2024, the Company proceeded with an early repayment of € 10,000 th. of its loan from OPAP
CYPRUS LTD.
Distribution to the shareholders
Dividend for the year 2023
The Company's Board of Directors decided during its meeting on 12.03.2024 to distribute a gross amount of € 590,271 th. or € 1.612297036 per share as final dividend for the fiscal year 2023 with € 1.001771387 per share having already been paid as interim dividend in November 2023.
The Company's Annual General Meeting ("AGM") of the Shareholders of the Company dated 25.04.2024 approved the abovementioned distribution and a gross amount of € 222,038 th. or € 0.610525649 per share, excluding 6,379,994 treasury shares, was distributed on 09.05.2024.
Capital return
Additionally, the Company's AGM decided the increase of the share capital of the Company by an amount of € 92,516 th., through the capitalization of an equal amount from the share premium reserve and the increase of the nominal value of each share of the Company by € 0.25 (from € 0.30 to € 0.55) to be followed by a share capital return of an equivalent amount (€ 92,516 th.) through a reduction of the nominal value of each share of the Company by € 0.25 (from € 0.55 to € 0.30), which is expected to be distributed on 01.07.2024.
Consequently, the total shareholders remuneration for the fiscal year 2023 amounted to € 1.862297036 per share.
Share Buy-back Programme
On 04.10.2023, the Company, following the 2023 AGM resolution on the establishment of a share buy- back programme and the corresponding announcement to the investment community on 04.09.2023, initiated the purchase of own shares.
Starting from 01.01.2024 and as of 31.03.2024, the Company has purchased through the Athens Stock Exchange 1,948,106 own shares, for a total purchase value of € 31,752 th., at an average price of € 16.30 per share. The Company as of 31.03.2024 holds in aggregate 5,839,042 own shares, i.e. a percentage of 1.58% of the total number of shares issued by it.
Establishment of OPAP Eco SINGLE MEMBER S.A.
On 27.02.2024, OPAP Eco SINGLE MEMBER S.A. was established by OPAP INVESTMENT LTD, a wholly owned subsidiary of OPAP S.A. and its purpose is the conclusion of power purchase agreements with third parties in order to manage and mitigate the risks associated with electricity purchase prices, for the advantage of the Company, the broader OPAP Group entities, and to fortify the agent's network.
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800
[Strictly Confidential]
OPAP S.A. - 1st quarter Interim Management Statement 2024
Launch of Eurojackpot
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On 03.11.2022, the Company acquired from the Greek State the license to conduct the numerical lottery game "Eurojackpot" in the Greek territory exclusively through its land-based network (OPAP Stores) for a period of 10 years with the option to be renewed for an equal or shorter time period, starting from the date of the conduct of the first draw which took place on 08.03.2024.
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800
[Strictly Confidential]
OPAP S.A. - 1st quarter Interim Management Statement 2024
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C. Alternative Performance Indicators (API)
The Group presents certain Alternative Performance Indicators besides the International Financial
Reporting Standards as issued by the IASB" ("IFRS") arising from its financial statements, particularly the
indicator "Net Debt/Earnings before interest, taxes, depreciation, amortization and impairment (EBITDA)".
The indicators which are defined and calculated in detail below, are widely used in order to present the
Group's profits in relation to its debt and how viable servicing its debt is. The Alternative Performance
Indicators should not be considered as a substitute for other figures in the Financial Statements.
(Amounts in thousands of euro) | 01.01- | 01.01- | Δ % | |||||
31.03.2024 | 31.03.2023 | |||||||
Profit before interest, tax, depreciation, amortisation | 34.6% | 37.2% | (7.1%) | |||||
and impairment (EBITDA) / Revenue (GGR) | ||||||||
Profit attributable to owners of the Company / Revenue | 20.6% | 22.4% | (7.8%) | |||||
(GGR) | ||||||||
Profit before interest, tax, depreciation, amortisation | 50.5% | 54.0% | (6.5%) | |||||
and impairment (EBITDA) / Net gaming revenue (NGR) | ||||||||
Profit attributable to owners of the Company / Net | 30.1% | 32.5% | (7.2%) | |||||
gaming revenue (NGR) | ||||||||
Net debt | 128,795 | (26,041) | (594.6%) | |||||
Total debt / Total equity | 80.3% | 62.0% | (29.6%) | |||||
Net debt / Profit before interest, tax, depreciation, | ||||||||
amortisation and impairment (EBITDA) last twelve | 0.18 | (0.03) | (621.7%) | |||||
months | ||||||||
Profit before interest, tax, depreciation, amortization and impairment (EBITDA) as a % of GGR
Calculated as the ratio of profit before interest, tax, depreciation, amortization and impairment (EBITDA) over GGR in the period.
Profit attributable to owners of the Company as a % of GGR
Calculated as the ratio of net profit for the year over GGR for the period.
Profit before interest, tax, depreciation, amortization and impairment (EBITDA) as a % of NGR
Calculated as the ratio of profit before interest, tax, depreciation, amortization and impairment (EBITDA) over NGR in the period.
Profit attributable to owners of the Company as a % of NGR
Calculated as the ratio of net profit for the year over NGR for the period.
Net Debt
Calculated as the sum of short-term and long-term borrowings plus short-term and long-term lease liabilities at the end of the period minus the "Cash and cash equivalents", "Long-term investments" and "Short-term investment" balances at the end of the period.
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800
[Strictly Confidential]
OPAP S.A. - 1st quarter Interim Management Statement 2024
Total Debt / Equity
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Calculated as the ratio of the sum of short-term and long-term borrowings plus short-term and long-term lease liabilities at the end of the period over equity at the end of the period.
Net Debt /Profit before interest, tax, depreciation, amortization and impairment (EBITDA) last twelve
months
Calculated as the ratio of Net Debt (see above) over profit before interest, tax, depreciation, amortization
and impairment in the last twelve months.
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800
[Strictly Confidential]
OPAP S.A. - 1st quarter Interim Management Statement 2024
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D. Interim Management Statement
The attached Interim Management Statement as at 31.03.2024 of the Group and the Company was approved by the Board of Directors of OPAP S.A. on 28.05.2024, is posted at the Company's website www.opap.gr as well as at the Athens Stock Exchange website and will remain at the disposal of investors at least five years from the date of its announcement.
It is noted that the published attached condensed financial information arises from the Interim Management Statement aim to provide the reader with a general information about the financial status of the Group and the Company but they do not present a comprehensive view of the financial position, the financial performance and cash flows of the Group and the Company in accordance with the International Financial Reporting Standards as issued by the IASB ("IFRS").
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800
[Strictly Confidential]
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OPAP SA - Greek Organisation of Football Prognostics published this content on 29 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 May 2024 15:01:13 UTC.