OPAP | First thoughts: Q2’21 strong as expected with c€130m FCF; interim DPS of €0.10 a positive surprise and signal
Normalizing trends and solid FCF – OPAP has reported a solid quarter broadly in line with our estimate, with non-Stoiximan GGR shaping c21% below pre-COVID levels (at €305m, +70% yoy) and group comparable EBITDA flat vs Q2’19 (at €88m). Reported (cash) EBITDA is boosted by the income associated with the prepayment of the gaming duty for the next decade and shaped at €144m this quarter, slightly exceeding our numbers. This drove a significant improvement in bottom line profitability, with net profit at €71.9m vs a €15m loss in Q2’20 and a €35m profit in Q2’19. Q2 was indicative of the high cash flow generative capacity of the business model (based on franchisees, with limited capex needs and working capital risk), with OPAP lowering net debt by a whopping €130m vs Q1’21. As such, net debt retreated to €423m,OPAP is engaged in the operating and management of numerical lottery and sports betting games as well as lottery games. Co. holds concession to operate and manage new sports betting games in Greece as well as a right of first refusal to operate and manage any new lottery games permitted by the Hellenic Republic. Co. operates six numerical lottery games, including Joker, Lotto, Proto, Extra 5, Super 3, and Kino; and three sports betting games consisting of Stihima, Propo, and Propo-goal. Co. is also engaged in designing new lottery games, including Bingo and Super 4. Co. distributes its games through an extensive on-line network of agents.
Eurobank Equities is a Greek-based firm offering research, sales and trading services to institutional, corporate and private clients. The company is wholly owned by Eurobank, one of the 4 systemic banks in Greece.
Eurobank Equities S.A. offers a comprehensive suite of investment products—including equities, derivatives, bonds, and mutual funds—serving over 15,000 private, corporate, and institutional clients in Greece and internationally.
The firm maintains a dominant position in the Greek capital markets, consistently ranking among the top brokers in terms of market share and is repeatedly recognised in major institutional investor surveys as one of the leading brokers and top Equity Research Providers for Greece.
Its multi-awarded Research Division delivers timely insights and fundamental coverage on almost 40 listed companies—representing over 90% of the ATHEX’s market capitalisation and traded value.
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