Last year wasn’t the best year for many gaming operators. But things are generally looking up across the industry. With certain exceptions, like Macau, 2022 gaming revenue is increasing from last year, and Greek operator OPAP has reported significant improvements.
Ongoing construction of OPAP Arena in a suburb of Athens, Greece. The name comes from Greek gaming operator OPAP, which started the year with a significant revenue improvement. (Image: News Bulletin 247)
In the period from January to June 2022, the company recorded a profit of €570.1 million (US$573.3 million). This is a considerable increase of 57.7% compared to the first half of 2021.
The increase was the result of OPAP being fully operational so far this year, as well as stronger demand. However, the company admitted that it faces overall weaker consumer dynamics.
Online Gaming Rebounds
Gross gaming revenue (GGR) in the second quarter of 2022 was €442.1 million (US$444.75 million), up 11.7% year on year. This, according to OPAP, reflects the strong performance of retail activities that are returning following COVID-19 shutdowns. It’s also the result of a considerable increase in online activity.
Net profit for the first half of 2022 was €167.3 million (US$168.27 million). For the period last year, the figure was €78.9 million (US$79.35 million), marking an increase of 111.9%.
Gross profit from gaming in the first half of the year jumped by 64.5% to €370.2 million (US$372.38 million). This was €145 million (US$145.87 million) more than last year, and comes as a result of the increase in the GGR combined with higher profit margins.
In the second quarter, gross profit from gaming increased 12% compared to the same period last year. OPAP took in €181.2 million (US$182.2 million), a notable boost from the €161.7 million (US$162.59 million) last year.
Operating costs in the first half of 2022 amounted to €171.9 million, (US$172.84 million), up 13.5% on an annual basis. Operating expenses in the second quarter were €83.3 million (US$83.76 million), a 4.9% year-on-year reduction.
The removal of COVID-19 restrictions was undoubtedly a significant factor in the improved results. However, Jan Karas, OPAP’s CEO, also saw other reasons the company performed better. He stated that it’s explored new areas of growth while taking advantage of better customer management opportunities to improve the bottom line.
OPAP Gets Its Own Stadium
OPAP will continue to see its name in lights across Greece for years to come. Agia Sophia Stadium is a soccer arena under construction in Nea Filadelfeia, a northwestern suburb of Athens, Greece. But for the next few years, its common name will be OPAP Arena.
OPAP bought the naming rights to the stadium, home to Greece’s AEK Athens soccer team, in 2020. It was part of a larger project that included helping to complete the new stadium for the team. OPAP paid €10 million (US$10.4 million) for the rights and is almost ready to hoist its name onto the building.
The final phase of construction, which has been ongoing since 2020, has faced delays because of COVID-19. At the start of the year, it looked like the stadium would be ready by September 15, but it’s not quite there. OPAP and AEK hope it will now be ready no later than October 1, when the team is scheduled to inaugurate its new home.
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