Closing its Q3 2016 (period ending 30 September), Greek gambling operator OPAP has posted a 40% decline in net profits to €29 million (Q3 2015: €49 million).
The operator informs its stakeholders that it is continuing to adapt to a ‘challenging environment’ in which it operating margin has been impacted by higher taxes of 35% by the Hellenic Republic.
Adjusting to new market conditions, OPAP governance stated that although period earnings and profit metrics had been impacted, the operator had maintained its revenue performance posting Q3 2016 revenues of €310 million (Q3 2015: €300.9 million).
For its year-to-date performance OPAP has generated EBITDA of €223 million (2015: €273 million) with a corporate net-profit of €115 million (€159 million).
Focusing on its future performance, OPAP governance underlined that the company was preparing to ‘restart its VLT products in Greece’, following the introduction of new machine regulations by the Hellenic Gaming Commission.
Commenting on corporate performance Damian Cope CEO of OPAP stated
“Understandably our overall profitability was severely impacted by the increased GGR contribution rate to the Hellenic Republic. We continue to stress that, at 35%, this is materially higher than the average of other European markets.”
“Looking forward, we do not expect any material improvement in the economic environment, but we will continue to execute the delivery of OPAP’s key strategic priorities as part of our ‘2020 Vision’. In the last few months we have already made tangible progress on each of them and are particularly pleased that we are now able to re-start the long-awaited VLT project. This, together with our other key initiatives, means that 2017 will be a busy year delivering considerable change and acting as the foundation for profitable, long-term growth for the benefit of all our stakeholders”
