Greek Operator OPAP has reported a stunning performance for the third quarter of 2019. The company reported revenue of €393.6m, a 6.7% increase year on year. The revenue came from a staggering wagering amount of €1.08bn. This is a 3.4% increase from 2018. The company paid €188.5m in GGR Contribution, duties, and other levies. The company finally reported €265.1m net profit which is 7.1% year on year increase.
The company, however, paid €93.6m in Agent’s Commission along with €16.8m in other net profit commissions. This is 43.9% more than 2018, reported the Greek Operator.
The operating income also increased to 9.9% to €32.2m, along with the Operating Cost rose to 4.6% to €23.1m. The majority of the revenue came from prepaid cards and mobile top-ups reported OPAP. It is amounted to be €24.6m. The IT Services brought €1.4m and the remaining amount came from miscellaneous sources.
The payroll expenses were also increased by 6.1% year on year to €19.7m. The wages and the salaries made €15.6m out of it. The social securities payment was €2.8m. OPAP reported that termination payment from the voluntary leave scheme came around €466,000 and the benefit plans totaled around €417,000.
Marketing expenses also saw a sharp increase. It rose to €12.9m, a 28.7% increase. The sponsorship expenses have been reported as €2.5m, a 44.6% increase on year on year basis as well. The CSR cost was €1.5m which was down by 8.3%.
The overall Average cost came around €8.9m which is up by 33.7%. The other operating expenses however reduced by 20% to €29.6m. The IT-related costs were reported as €7.3m and the telecommunication expenses were €3.6m. The Rental costs also amounted to be €402,000.
The profit before tax, interest, depreciation, and amortization was €101.6m. This is an increase of 16.5%. The depreciation cost was €28.6m up by 17.7% for OPAP.
The financial income of OPA was increased by 85% to €642,000. The financial cost was also increased by 11.4% to €7.2m. The operator, however, made another €1.9m through the share of companies.
OPA paid €19.4m in Tax, which is up by 12.4%. The overall profit after tax was €49m up by 23.9%.
This came after the Greek Council of State revoked the online sports betting license of OPAP. The Supreme Administrative Court of Greece revoked the license after Australian Operator Goalbet argued to the court that OPAP was never asked to the necessary conditions for the license. However, OPAP said that the financial results would not impact this. The revenue from online betting for OPAP is around 1%. However, it is working to protect the interest of the company by legal means.
The online gambling reforms in Greece triggered this. Greece has imposed a €3m license fee and a 35% gross revenue tax for the licensed operators.
Sazka Group, a Czech Lottery Group increased the stake in OPAP to 40% in October. This came after the offer period where the Sazka Group tried to acquire all the pending shares of the OPAP group.