OPAP Q3/9M First Glimpse – by Manos Chatzidakis

25.11.2014 19:12
OPAP (Q3/9M Results preview): OPAP released a solid set of results in line with our estimates. Strong Stihima performance (+21%) and the consolidation of Hellenic Lotteries for the first time (Sales of +€131.2m) were the main elements of turnover increase by 19.1 in Q3 In specifics:

¡  Revenues increased by 12.9% to €2,981.6m (9M 2013: €2,641.8m). Q3 2014 revenues increased by a considerable 19.1% to €1,068.8m (Q3 2013: €897.6m) owing in the most part to the strong performance of Hellenic Lotteries and the ongoing increase of Stihima.

¡  Revenues from numerical games were down by 2.1% to €1,685.1m in 9M 2014 from €1,720.5m in 9M 2013. KINO’s revenues in Q3 2014 reached €484.0m, lower by 4.0% y-o-y, on the back of scratch tickets’ introduction in May.

¡  Hellenic Lotteries generated revenues of €252.1m in 9M 2014. Revenues in Q3 2014 reached €131.3m, split between €88.4m for scratch and €42.9m for passives. The Q3 revenues’ run rate is seen as a normalized trend to be expected in the foreseeable future as well. On the profitability front, margins rose significantly despite the relatively early stage of operations.

¡  Distribution costs in Q3 is down by 29.9% (-€6.8m). However we note that administrative costs are 36% up (+€2.6m).

¡  Cash inflow from operating activities in 9M 2014 stood at €163.8m from €179.7m in 9M 2013, as higher operating profitability was offset by the calendar effect related to different timing of GGR taxation payments. Net cash at the end of the period stood at €176m.

¡  BoD decided to convene an Extraordinary General Meeting on Thursday, 18th of December 2014, in order to decide on the distribution of the Company’s tax-exempt reserves of €9,039,347.64 and additionally inform the Shareholders on its decision to proceed with the distribution of an interim dividend for the fiscal year 2014 of €64,330,652.36, before the tax deduction. The BoD’s proposal is the two payments (tax-exempt reserves & interim dividend) to be jointly executed, resulting to a total of €0.23 per share. Monday, January 12th 2015, will be proposed as a cutoff date, while the payment is proposed to commence on Monday, January 19th 2015.

 

A conference call is schedulled at 16:00 GR time. Focus on VLTs launch scheduling, regulatory issues and negotiations with agents.   CC Details:

 

¡  UK participants please +44 (0) 800 376 9250

¡  Greek participants dial +30 211 180 2000

¡  US participants dial +1 866 288 9315

¡  Other International dial +44 (0) 203 0595 872

 

OPAP 2013 2014 Y-o-Y 2014 Act. vs 2013 2014 Y-o-Y 2014 Act. vs
EUR m. 9M 9M (%) 9M Est. Est. Q3 Q3 (%) Q3 Est. Est.
Sales 2,641.8 2,987.6 13.1%  2,977.0 0.4%  897.6 1,074.8 19.7%  1,064.2 1.0% 
EBITDA 174.1 239.0 37.3%  239.0 0.0%  70.8 94.1 32.9%  94.1 0.0% 
EBITDA Mrg 6.6%  8.0%  +141 bps  8.0%  -0 bps  7.9%  8.8%  +87 bps  8.8%  -0 bps 
Net Income 111.7 119.0 6.5%  120.0 -0.9%  44.4 53.5 20.6%  54.6 -1.9% 
Net Mrg 4.2%  4.0%  -25 bps  4.0%  -0 bps  4.9%  5.0%  +4 bps  5.1%  -0 bps 

Best Regards,

 

Manos Chatzidakis

Head of research

Beta Securities S.A.

29 Alexandras Ave.

GR – 11473

Athens, Greece





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