GOOD MONEY IN MONOPOLIES

28 March 2008

Greece's OPAP turns in another positive year


Greece's partly state-owned betting monopoly OPAP saw its full year net profits rise again in 2007 - up 12.1 percent year-on-year to Euro 571.4 million, which was just above expectations.

Full year sales also beat expectations and rose 9.3 percent from 2006 at Euro 5.065 billion. The strong sales results for 2007 were driven by KINO's performance while Stihima posted a notable 21.1 percent year-on-year growth in the fourth quarter of 2007.

EBITDA was in line with forecasts and grew 9.7 percent year-on-year to Euro 810 million.

OPAP noted that EBITDA was burdened by two one-off payments of a total of Euro 50 million for fire victim relief (see previous InfoPowa report). However, it highlighted that it still posted solid growth as cost cutting measures and moving Stihima in-house offset higher distribution costs and an increased Stoichima pay-out.

Commenting on the results, CEO Christos Hadjiemmanuil said: "We are particularly pleased with the continuing strong performance of KINO, as well as the overall performance of Pame Stoichima (Let's Go Betting") during the first year of operating the game in-house."

Looking forward to 2008, Hadjiemmanuil explained, "Our three priorities for 2008 are the reorganisation of our internal operations to improve efficiency, the strengthening and enrichment of Stoichima with the new forms of betting and conclusion of contractual agreement with our agents' network. At the same time, we aim to contain a number of operating expenses, such as advertising costs."

Earlier this month, Hadjiemmanuil said the focus of management would be on the three pillars over the next few months with the aim of finalising these issues before mid-year.

Plans for expansion abroad announced by the previous management of the company remain on ice and will be reviewed by the end of the year, said Hadziemmanouil. By that time moves by the European Commission against the company’s monopoly status will have unfolded, he added, noting that he will defend the monopoly with all his strength.

“However, if worst comes to worst and we lose the monopoly, then only some very gullible people will believe that OPAP would cease to be profit-making,” he said.

Online Casino News courtesy of InfoPowa