OPAP's Revenue Surge: Mega Jackpot and Sports Betting Drive Growth

In the dynamic world of gaming, one company has been making waves with its impressive revenue growth: OPAP, the leading gaming operator in Greece. OPAP's recent financial results have been nothing short of remarkable, with a significant surge in revenue driven by two key factors: a Mega Jackpot and increased sports betting activity. Let's delve into the details and explore what this means for OPAP's future.

OPAP's Q3 2024 results showcased a stunning 17.6% year-over-year (YoY) increase in Gross Gaming Revenue (GGR), reaching €565.8m. This impressive growth can be attributed to the stellar performance of Tzoker's Mega jackpot, which positively impacted GGR. Additionally, increased sports betting activity contributed to this remarkable growth.

The Mega Jackpot and sports betting weren't the only factors driving OPAP's success. The company's robust online performance, with online gaming contributing 31% of total revenues in Q3 2024, further bolstered its market position. OPAP's strategic partnership with OpenBet, announced in March 2023, is expected to enhance its online sportsbook offering, providing competitive advantages and scaling its online betting business.

OPAP's strong financial performance is reflected in its EBITDA, which jumped 46.6% YoY to €213.2m in Q3 2024. This impressive growth is a testament to OPAP's ability to leverage its expertise and high-end technology solutions, positioning it well to maintain and potentially strengthen its market share in the Greek gaming market.



OPAP's revenue growth trajectory has been impressive, with a compound annual growth rate (CAGR) of 10.5% over the past five years. This compares favorably to other leading European gaming companies such as Flutter Entertainment (8.2%) and Entain (7.3%). OPAP's strong performance can be attributed to its focus on both retail and online gaming, with online revenues growing at a CAGR of 28.2% during the same period.



As OPAP continues to leverage its online presence and retail network, maintaining this momentum will depend on consistent jackpot wins and sustained sports betting activity. However, potential market fluctuations and regulatory changes may impact future growth. To ensure consistent earnings growth and mitigate risks, OPAP should consider diversifying its revenue streams. Expanding its online presence and exploring strategic acquisitions, like Salesforce, can drive organic growth and balance its portfolio.

In conclusion, OPAP's revenue surge, driven by the Mega Jackpot and sports betting, underscores the company's strong financial performance and market position. As OPAP continues to innovate and adapt, it is well-positioned to maintain and potentially strengthen its market share in the Greek gaming market. By embracing a balanced approach to growth and risk management, OPAP can continue to deliver steady performance and higher valuations, aligning with the author's investment preferences for 'boring but lucrative' investments.