Greek Organization Of Football Prognostics ((GOFPY)) has held its Q4 earnings call. Read on for the main highlights of the call.
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The latest earnings call from the Greek Organization Of Football Prognostics (OPAP S.A.) highlighted a strong performance in the fourth quarter of 2024, marked by record-breaking revenues and significant growth, particularly in the online segment. Despite these achievements, the call also addressed challenges such as sustaining sports betting growth, cost pressures, and uncertainties surrounding license renewals.
Exceptional Q4 Performance
OPAP S.A. reported an exceptional performance in Q4 2024, largely driven by the GIGA jackpot in Tzoker, robust sports betting outcomes, and the increasing popularity of iGaming. The online segment was a standout, contributing approximately 32% to the group’s revenues, setting a new record for the company.
Top Line Performance
The company’s top line performance for 2024 exceeded expectations, surpassing the upper end of guidance by nearly EUR 100 million. This was attributed to the exceptional sports betting performance and favorable results during the Euro ‘24 tournament.
Online Segment Growth
The online segment demonstrated strong growth, contributing 32% to the group’s revenue. This underscores OPAP’s effective digital strategy and the increasing shift towards online gaming among consumers.
Shareholder Remuneration
OPAP maintained its commitment to rewarding shareholders, with dividend distributions exceeding net profits and a minimum of EUR 1 per share. The company also completed a buyback program worth EUR 150 million, reinforcing its focus on shareholder value.
Challenges in Sustaining Sports Betting Growth
The call highlighted concerns regarding the sustainability of sports betting growth and margins. There is a potential saturation point as customer spending might stabilize, posing a challenge for future growth.
Cost Pressures
OPAP faced cost pressures due to necessary salary adjustments to retain talent and increased marketing and sponsorship expenses. These factors have impacted the company’s overall margins.
License Renewal Uncertainty
There is ongoing uncertainty regarding the renewal of core offline betting and numerical lotteries licenses. Discussions are in progress, but no definitive timeline has been established, potentially influenced by recent government changes.
Forward-Looking Guidance
Looking ahead, OPAP expressed cautious optimism for 2025, projecting low single-digit growth at the group level due to the challenging comparison base from 2024’s extraordinary results. The company plans to continue enhancing gaming experiences and focusing on digital growth. Additionally, OPAP reiterated its commitment to distributing dividends exceeding net profits, with any future share buybacks being complementary to their dividend policy.
In summary, the earnings call from OPAP S.A. painted a picture of a company achieving remarkable success in Q4 2024, particularly in its online segment. However, it also acknowledged challenges such as sustaining growth in sports betting, managing cost pressures, and navigating license renewal uncertainties. The forward-looking guidance suggests cautious optimism, with a focus on digital growth and shareholder remuneration.