Significant increase of 26.4% in the net profit for the year 2021, to € 259.4 million, OPAP announced today, with the net income before contributions (GGR) reaching € 1,538.8 million increased by 36.2% and EBITDA to jump 111.1% to € 550.3 million.
In more detail, OPAP announced its Financial Performance in accordance with International Financial Reporting Standards (IFRS) for the year ended December 31, 2021 as follows:
• The net income before contributions (GGR) fiscal year 2021 amounted to € 1,538.8m. increased by 36.2% on an annual basis as a result of the significant contribution of online, as well as the recovery of retail activities with our stores operating for more days in 2021 compared to 2020. In the fourth quarter of 2021 net income amounted to € 498.5m, increased by 115.9% compared to the corresponding period last year, reflecting the resilient performance of retail and the strong contribution of online.
• The gross profit (from toys) increased in 2021 by 47.5% and amounted to € 605.8m. (FY 2020: € 410.8m). In the fourth quarter of 2021 the gross profit (from games) amounted to € 195.3m. (4th quarter 2020: € 77.7m) increased by 151.4% on an annual basis due to the increase of GGR, which was partially offset by the disproportionate contribution on GGR of “HELLENIC LOTTERIES” to meet the minimum contractual limit of € 50m
• The Earnings before interest, taxes, depreciation and amortization (EBITDA) in 2021 increased by 111.1% to € 550.3m. (FY 2020: € 260.7m), or by 96.0% on a recurring basis, enhanced by additional revenue recognition of € 217.4m. related to the extension of the concession contract. EBITDA for the fourth quarter of 2021 amounted to € 170.4m. (fourth quarter of 2020: € 53.1m) increased by 220.7% or by 187.2% on a recurring basis not including extraordinary funds in both years.
• Operating costs of use 2021 at € 321.8m. increased by 25.2% compared to the corresponding period last year, while operating expenses in the fourth quarter of 2021 amounted to € 93.2m. higher by 17.0% on an annual basis. Excluding the impact of Stoiximan’s full consolidation and contingency, operating expenses for the year 2021 and the fourth quarter of 2021 increased by 2.0% and 14.6% respectively on an annual basis to support our expanded operations.
• The net profit for the year 2021 amounted to € 259.4m. increased by 26.4% (FY 2020: € 205.2m) or by 151.3% on a recurring basis, as a result of enhanced operating profitability and lower corporate tax rate. In the fourth quarter of 2021 the recurring net profits amounted to € 86.2m. (fourth quarter 2020: € 18.0m.), 5 times higher than the corresponding period last year.
Proposal to the General Meeting of Shareholders on June 9 for remaining gross dividend per share for the year 2021 at € 0.50, which together with the already distributed interim dividend of € 0.10 lead to the total dividend amount of € 0.60. Dividend cut date 18 July 2022.
• Additional proposal to the General Meeting of Shareholders for return on capital amounting to € 0.90 per share. Cut-off date 29 July 2022.
Analytically, the net income before contributions (GGR) in the year 2021 increased by 36.2% on an annual basis to € 1,538.8m. mainly due to the strong contribution of online and the operation of our stores for more days in 2021 compared to 2020. GGR in the fourth quarter of 2021 increased by 115.9% on an annual basis to € 498.5m. due to increased
revenue from online activities which accounted for 23% of total GGR, further enhanced by the full consolidation of Stoiximan in December 2020. In addition, our branch network remained open throughout the fourth quarter of 2021 in contrast to the corresponding period last year, although under restrictive measures
Gross profit from games for the year 2021 amounted to € 605.8m, increased by 47.5% on an annual basis, due to the increase in GGR in combination with the enhanced contribution of online activities. In the fourth quarter of 2021 the gross profit increased by 151.4% on an annual basis and amounted to € 195.3m. against € 77.7m. in the fourth quarter of 2020. The gross profit from games is still burdened by the increased contribution on the GGR of “HELLENIC LOTTERIES” to meet the minimum contractual limit of € 50m
Operating profit before taxes, interest and depreciation (EBITDA) amounted to € 550.3m. in the year 2021 for € 260.7m. in 2020 increased by 111.1%, or by 96.0% on a recurring basis, due to the increase of GGR in combination with revenues of € 217.4m. related to the extension of the concession contract. In the fourth quarter of 2021, EBITDA amounted to € 170.4m. against € 53.1 million in the fourth quarter of 2020, supported by the full consolidation of Stoiximan in December 2020
Net profit for the year 2021 amounted to € 259.4m, compared to € 205.2m. in the year 2020, increased by 26.4% or by 151.3% on a recurring basis not including extraordinary funds, as a result of the enhanced operating profitability. The net profits in the fourth quarter of 2021 amounted to € 81.2m. against € 131.9m. in the fourth quarter of 2020 or increased by 379.2% on a recurring basis not including extraordinary funds
Karas: Significant results, strong financial position
“OPAP reaffirms the dynamics of its business model, achieving significant results and strong financial position in 2021, despite the continuing challenges of the pandemic”, says in a statement the CEO of OPAP, Jan Karas, commenting on the financial results of the fourth quarter of 2021 “Overall, the fourth quarter of 2021 was historically among the best performing, in GGR terms, and the company ‘s cash flow was further strengthened.
Our retail activities showed high resilience, with the recovery accelerating, although our stores had to suspend their activities for several months and adapt to strict health restrictions after their reopening. Our comprehensive business plan and loyalty programs, which have been widely accepted, have played an important role in this direction.
Online activities continued to be a key driver of growth for OPAP, even after the reopening of the retail network. Our online customer base has grown further, thanks to upgraded front-end environments and targeted CRM activities. Also, our dual strategy continued to bear fruit, with the full integration of Stoiximan clearly contributing to our performance.
In addition, our commitment to social contribution remains particularly strong. Soon, we will complete the renovation of the two largest pediatric hospitals in Greece – a long-term project, which highlights in practice our focus on creating value for all our social partners.
Looking to the future, we remain committed to providing the best in the field of entertainment, emphasizing our customer-centric approach and digitization, guided by the realization of the ambitions of OPAP’s Fast Forward strategy “.
See the full announcement in the right column Related Files
Source: Capital
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