Strong growth reported by OPAP in the first quarter of 2025
CEO of OPAP, Jan Karas, can't help but brag about the blazing performance of the company's iGaming and sports betting divisions. With Q1 2025 results under their belt, OPAP, under the ownership of Allwyn, is standing tall and confident about hitting full-year financial targets.
The Greek lottery operator raked in €595.0 million ($677.6 million) in revenue during the first quarter, marking an impressive 8.2% year-on-year increase. Despite a slight dip compared to Q4’s €647.8 million, net revenue, calculated as GGR minus levies and duties, soared 7.9% year-on-year to €406.4 million.
Every corner of OPAP's core business areas reported growth during the quarter. The iGaming division led the way, stomping its foot hard with a 19.8% revenue surge. Sports betting followed hot on its heels, firing up the numbers by 12.8%. Though lottery still holds the crown as OPAP's primary revenue driver, the digital channels are quickly gaining ground.
In his usual brash yet charming manner, Karas enthused, “2025 has kicked off on a promising note with robust Q1 results. Our solid organic growth, fueled by continued momentum in online, gives us the confidence to deliver our outlook for 2025.” He added, “The iGaming and sports betting segments have been the main driving forces behind this success.”
OPAP’s star performer for Q1 was, without a doubt, iGaming, smashing revenue to €84.9 million. The division’s growth was fueled by increased player activity and more spending, indicating some serious engagement across digital channels. In the online revenue pie, iGaming took the largest slice, accounting for 48.1%, followed closely by sports betting at 45.0% and lottery at 6.9%.
Sports betting revenue increased 12.8% year-on-year, with €79.0 million generated online and €111.0 million from retail outlets. March was a particular win, with OPAP reaping the benefits of favorable betting margins. Lottery revenue inched up by 5.5%, with the Tzoker game shining bright, thanks to a record €19.5 million jackpot. Retail outlets remained the primary channel for lottery sales, gobbling up 94.2% of the sales pie.
Among other operations, VLT revenue edged up 1.5% to €87.8 million. However, the instant and passives segment continued its downward spiral, with revenues falling 7.9%, a trend that mirrors Q4 2024 and full-year performance.
OPAP's expenses took a leap across all areas during the quarter. Gross gaming revenue contributions and other levies jumped year-on-year to €188.7 million. But thanks to the strong revenue performance, EBITDA increased by 8.8% to €207.1 million, and after accounting for depreciation and amortization, operating profit grew by 10.3% to €173.1 million.
Pre-tax earnings showed a 9.8% year-on-year rise to €171.0 million, taking a hit from a €44.6 million income tax payment. OPAP's Q1 net profit totaled €126.4 million, a 9.2% improvement over the same period last year.
Karas concluded, "Moving forward, we're keeping our customers' needs right in the spotlight. We're all about delivering exciting experiences in both retail and online while staying ahead of the game by innovating with technology." OPAP, being part of Allwyn, will continue offering unique customer experiences, keeping them at the pinnacle of competition. The Q1 performance sets OPAP well on its way to achieving growth and profitability goals, creating value for shareholders and fostering sustainability and social responsibility.
🎲On the Cusp of a $100 Billion iGaming Market
The global iGaming market is forecasted to reach a staggering $100 billion by 2026, paints a promising picture of future growth for OPAP's iGaming segment. OPAP’s membership in Allwyn and its presence in various markets, including Greece, opens up avenues for market expansion and diversification. By continuously innovating and harnessing digital technologies, OPAP stands in a prime position to capitalize on emerging trends and regulatory opportunities that foster business growth. The company's focus on sustainability and social responsibility will also help maintain a positive brand image, ensuring long-term customer loyalty and growth. 🤑💰🚀
During the first quarter of 2025, the iGaming and sports betting segments spearheaded the growth of OPAP, with each reporting impressive year-on-year increases. As the global iGaming market is forecasted to reach $100 billion by 2026, OPAP, backed by its parent company Allwyn, is poised to capitalize on these emerging trends and regulatory opportunities, maintaining a focus on sustainability and social responsibility to ensure long-term growth.
