Greek OPAP says may review 2011 dividend payout

Austerity in Greece is taking its toll on OPAP, which on Wednesday posted a 21 percent drop in fourth quarter profit and announced its biggest dividend cut in 10 years.

Chief Executive Officer Yannis Spanoudakis told analysts in a conference call the dividend cut sought to save money for a "crisis levy" the government has announced but not enacted yet. OPAP has already budgeted 89 million euros for the tax. "We have given guidance for a 50 percent dividend payout (for 2011)," Spanoudakis said. "If the situation changes and this levy is revoked ... we will reconsider what the final dividend will be."

The firm paid 850 million euros last year to extend its monopoly in Greece and acquire an exclusive licence for 35,000 video lottery terminals that are expected to boost its business considerably.

OPAP which is 34 percent state owned had said the first video lotto terminals (VLTs) would be launched by the start of the second quarter this year. But Spanoudakis admitted this would not be feasible, mainly due to government delays in putting the necessary regulations in place. He said that if this was done by the end of the month, the first video lottery halls could start operations in September.

As part of a strategy to expand to new operations, OPAP has also bid for a 12-year licence to operate the country's lotteries and is one of the three short-listed consortia.