Research, Charts & Company Announcements
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).
20 Feb 17
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The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
CORETX (COR LN) Contract wins and new Lifestyle facility | Gooch & Housego (GHH LN) Solid Q1 trading plus earnings enhancing acquisition of StingRay Optics | NCC Group (NCC LN) Further issues in Assurance | PCI-PAL (PCIP LN) Strong H1 underpins positive outlook | UBM (UBM LN) Results | Verona Pharma (VRP LN) Phase IIa RPL554 add-on trial to tiotropium commenced
N+1 Singer - Carpetright - Recovery has just begun
17 Feb 17
With UK LFLs up 6.8% in Jan against tough comparatives, and Europe LFLs up 5.4% in Q3, the first clear evidence is now visible that the transformation strategy is gaining momentum. Given some uncertainties, market forecasts are yet to reflect this, but upgrades seem likely as further initiatives are rolled out. Despite a recent bounce from its all time low, the valuation is still very low on consensus assumptions, where risk now appears to be shifting to the upside. With scope for re-rating too, our 300p target price has the scope to grow to 500p over 18 months. We re-initiate with a Buy.
Panmure Morning Note 19-01-2017
19 Jan 17
Pets at Home have released a Q3 trading update this morning that will disappoint the market. Group like-for-like revenue growth was just +0.1% through 3Q16 as subdued trading across the Merchandise business weighed on continued strong growth in Veterinary Services. Profit outlook for FY17 remains in line with expectations. Suspect the shares will come under pressure.