OPAP | Stepping up the VLT game
Following our tax-related insight report published in April, we seek to offer a complementary perspective on OPAP’s machine performance. Our analysis suggests that the stalled momentum is mostly reflection of venue maturity and estate quality. That being said, we argue that the combination of cyclical acceleration, clampdown on illegal gambling and OPAP’s upcoming self-help actions are likely to lead to a gradual VLT ramp-up across the board. We also expect the future clusters to require a shorter period to reach a relatively “mature†GGR level of €45/day. On that basis, we have inputted GGR/day near €45-50 for most VLT clusters by Q4’19 and c€60 for OPAP’s oldest 5.3K batch (from H2’19 onwards).We reiterate our Buy rating on OPAP, with key tenets of our thesis being the double-digit earnings’ growth, the limited regulatory risk, the high cash conversion and the optimizing capital structure which should lead to superior cash returns.
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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.