OPAP anticipates fall in profits for 2013

Greece is currently in the process of offloading 33 % of OPAP to one of seven short-listed parties with OPAP revealing that the projected drop in profits for 2013 was due to higher taxes and investments and could potentially reduce its value to investors.

OPAP, which is due to unveil its full 2012 financial results next week, reported in November a 7.8 % year-on-year decrease in revenues for the first nine months of the year to 2.9 billion euros due to ‘unprecedented economic conditions’ while its market valuation is currently around 2.26 billion euros.

OPAP operates a government-approved sportsbetting monopoly in Greece and has similar exclusivity for all lotteries while its ten-year licence for all video lottery terminals in the country was complemented last year following the award of a twelve-year scratchcard licence.

However, Greece placed a 30 percent gross earnings tax on OPAP last year in hopes of boosting government revenues and meeting fiscal targets set as part of its bailout deal with international lenders including the European Union and International Monetary Fund.

According to a report from the Reuters news service, OPAP expects gross gaming revenues for 2013 to reach 1.2 billion euros, which would be down from the 1.3 billion euros estimate for 2012, while net profit for 2014 is estimated at approximately 127 million euros from gross revenues of 1.61 billion euros.