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Research Tree provides access to ongoing research coverage, media content and regulatory news on OPAP SA. We currently have 3 research reports from 1 professional analysts.
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Unsurprisingly, weak 9m results brightened by hope surrounding the VLTs resurrection
23 Nov 16
OPAP released its 9m and Q3 results. Results During the 9m period, total group revenues (GGR) reached €998m, flat yoy. Amounts wagered were down 0.6% to €3,044.1m. EBITDA came in at €223.8m: down 18% yoy. Adjusted for the increase in the GGR contribution (+5ppts) in January, EBITDA declined by 3.0% yoy, hit further by extraordinary costs (€6.4m) related to the VLT arbitration. Net profit reached €115.1m vs €159.1m a year earlier. During Q3, group revenues reached €319.2m, up 6.1% yoy, mainly reflecting a solid yoy growth in Lotteries and softer comps due to the introduction of capital controls in H2 15. Amounts wagered reached €900.8m, up 8.3% yoy. EBITDA reached €62.3m, down by 28.4%. Net profit reached €29.3m versus €49.1m in Q3 15. These lower results mainly reflect the increase in GGR tax. Excluding this, net profit stood at €38.7m. At 30 September, the group held a net cash position of €186.7m. Restart of the VLT activities The company confirmed the relaunch of the VLT business (see below) and announced the creation of Tora Wallet SA, an electronic money institution which will provide customers with ewallets, payment cards and financial services supposedly related to the new requirements imposed by the Greek regulators for the VLT activity.
H1 results in line, new management and 2020 strategic plan
31 Aug 16
OPAP released H1 16 results which were roughly in line with our expectations and slightly above the consensus. Total amounts wagered reached €2.1bn in the first half, down 4.3% yoy and broadly in line with the consensus. Gross Gaming Revenue (GGR) reached €678.8m, down 2.6% yoy, while GGR was down by 0.8% during the second quarter, at €338.1m (-4.4% yoy during Q1 16). The GGR contribution and other levies and duties rose 10.5%, mostly reflecting the 5ppts increase in GGR tax applied from 1 January. As a consequence, EBITDA was down 13.4% yoy in the first half, at €161.4m, 4% above the consensus. Net profit came in at €85.8m, down 21.9% yoy and 2.4% above the consensus. In the second quarter, net profit reached €33.0m (Q2 15: €51.9m). The board proposed an interim dividend of €0.12 per share (€0.17 in 2015).
Punitive tax and legal measures knock out OPAP
04 Dec 15
The 9m 15 was marked by punitive legal measures imposed on OPAP’s legacy games while, at the same time, the Hellenic Gaming Commission introduced stricter regulations for the operation of VLTs, forcing OPAP to freeze the launch of its first machines, for economic reasons. On top of this, the betting activity in Q3 15 was hurt by capital controls this summer, contrasting with robust 9m 15 figures. Revenues slipped by 15.7% while wagers contracted by 12.9% (vs +2.7% in 9m), attributable to the deterioration in consumer spending in July, caused by the bank holiday period in July (Greece shut its banks and imposed restrictions on cash withdrawals in June), although it recovered partially in August and September. The Hellenic Lotteries (i.e. scratch cards and two passive lotteries, launched on 1 May 2014) suffered the most, showing a 38% collapse in wagers in Q3. Sports betting collapsed by 8.4% in 9m 15 with Stihima showing an abrupt interruption in the positive trend seen in past quarters, recording a 20.4% drop in amounts wagered in Q3. Measures are being intensified to rejuvenate Stihima, through the introduction of a new coupon and enriching the game’s content. Numerical games were not spared by the economic uncertainty which caused the 8.6% drop in Kino’s amounts wagered albeit recovering sharply in September. Gross Gaming Revenue (GGR) dropped by 12.9% (vs +3.8% in 9m) while EBITDA fell by 7.6% (vs +14.4% in 9m). The efforts made in terms of operating cost optimisation helped to mitigate the GGR drop while the EBITDA margin in Q3 improved by 1.6% to 28.9% compared to Q3 14. Net profit fell by 8.5% to €49.1m (vs +33.7% in 9m).
30 Nov 16
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N+1 Singer - Morning Song 30-11-2016
30 Nov 16
Sanderson has delivered full year results in line with expectations and the 19 October trading update after a strong finish to the year compensated for a slower start. A healthy level of pre-contracted recurring revenue (50%), incremental sales to existing customers and new customer wins at higher average order values helped deliver solid revenue growth in both the Digital Retail (+9%) and Enterprise (+12%) divisions. A decent order book and good sales momentum suggest that the company is on track to deliver on unchanged profit expectations for the current year. We continue to view the valuation (FY17 EV/EBITDA 8.6x) as undemanding given an attractive combination of accelerating growth potential, strong cash generation and growing dividends.
Upgrade to BUY post-site visit
12 Aug 16
A positive site visit this week has given us comfort on FY16 (September) numbers. Our focus therefore now turns to FY17 forecasts, which bear upside risk, in our view. The share price remains 10% below pre-referendum levels and has been largely ignored in the post-Brexit recovery. We reaffirm our 350p price target and upgrade from Hold to Buy.