H1 2020 Gross Gaming Revenues (GGR) at €507.9m lower by 34.8% y-o-y and Q2’20 GGR at €179.6m decreased by 53.2% y-o-y due to the imposed Covid-19 related lockdown and the accompanying stores closure. Performance post full reopening (June 8th – June 30th) returned to positive ground.

EBITDA in H1 2020 lower by 49.1% to €102.5m (H1 2019: €201.4m) or -43.4% on l-f-l after excluding oneoff items in both years. Q2 2020 EBITDA came in at €16.2m (Q2 2019: €88.4m) decreased by 81.7%, or – 74.7% on l-f-l basis.

Net Profit in H1 2020 lower by 77.7% to €20.4m (H1 2019: €91.8m) or -64.5% on a l-f-l basis after excluding one-off items in both years. Q2 2020 Net Loss came in at €15.1m (Q2 2019: profit of €34.6m) or €-4.9m vs. Q2 2019 profit of 36.6m when excluding one-off items.

Kaizen Gaming (Stoiximan/Betano brands)

In August 2020 OPAP concluded the acquisition from TCB Holdings Ltd (‘TCB’) (now under corporate name ‘Kaizen Gaming Limited’) of the pre-agreed 51% direct stake in Stoiximan Group’s Greek and Cypriot business (‘SMGC’) currently operated by GML Interactive Ltd (now under corporate name ‘Kaizen International Gaming Limited’), for an aggregate net consideration (i.e. after subtracting OPAP’s 36.75% stake in TCB) of €90.2m plus net cash of €3.0m. Additionally, as previously announced, OPAP will pay earnouts for 2020 and 2021 subject to the performance criteria set for SMGC. Following the completion of the aforementioned transaction, OPAP effectively holds 69% stake in SMGC, while it retains its 36.75% stake in Stoiximan Group’s operations outside of Greece and Cyprus under the BETANO brand.

Amounts in 000,000 eurH1 2020H1 2019Change%
EBITDA102,5201,4-49,1%
Profit after tax20,491,8-77,7%

Stock chart

After three months we revisit the longer term weekly chart of OPAP. We have detected an ascending triangle formation that we expect to act as a reversal of the decline of the stock from its historical highs. The formation is named as ABCDE with expected in the next few months. We calculate that 70% of the pattern is already completed. Following the drop below the D point the stock recovered instantly and kept the formation alive, a sign that longer term investors stepped in to buy. We expect that the stock will fluctuate within the formation for the next 6-8 months until improved fundamentals appear.

The chart has been prepared with XSpot PRO terminal. XSpot PRO offers fast execution in 13,000+ investment products from 20+ major exchanges around the world.