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.
Research is the backbone of Eurobank Equities' platform, with a team of 4 professionals committed to generating actionable investment ideas by providing timely research products. We are committed to offering value-added services to clients by filtering market noise and providing insights on the multiple sectors that we cover. Our universe includes 26 - large, medium and small cap - companies whose market capitalization amounts to 80-85% of the total market capitalization of the Athens Stock Exchange. Our research team also maintains the capacity to generate ad-hoc research for micro-cap listed companies.
Our team has consistently gained recognition among institutional investors for its quality research, having ranked No. 1 team in Greece at the Extel Surveys of 2013-2016 and 2018. We have also been named Leading Brokerage Firm in Greece over 2014-2016 and in 2018.
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