Member of the Piraeus Bar Association since and practices law specialising in maritime and corporate law. He is also a member of the General Counsel of Hellenic Federation of Enterprises since Pavel Saroch. B' vice-chairman, non-executive member. Currently board member of Allwyn and CIO and board member of investment group KKGC.

Prior positions include board member of IFB consultancy and private investments. Pavel Mucha. CFO, executive member. Became CFO in October having joined from Sazka Allwyn where he was CFO.

Prior roles include tax consultant at Price Waterhouse, and various finance positions in pharmaceutical and FMCG companies. Katarina Kohlmayer. Non-executive member. Christos Kopelouzos. Currently co-CEO of Copelouzos Group, which has business activities in the areas of natural gas, renewable energy, electricity production and trading, real estate, concessions, airports and gaming.

Stylianos Kostopoulos. Head of the family office of the founders of Aegean Oil, as well as board member, CFO, financial advisor and treasurer in various companies. Also a member of the board of SAZKA DELTA VCIC and its affiliates.

Prior roles include managerial positions in the financial and banking sector. Robert Chvátal. CEO of Allwyn and vice-president of European Lotteries the industry association. Prior roles include CEO and board member of Slovak Telecom in T-Mobile Slovakia and CEO for T-Mobile Austria, chief marketing officer and member of board of directors of T-Mobile Czech Republic.

Nikolaos Iatrou. Independent non-executive member. Until chairman and managing director of Marfin Hellenic Securities as well as several other managerial positions within MARFIN BANK.

In founded SILK Capital Partners, a boutique corporate finance firm. Since he has been a member of the board of directors and a member of the investment committee of NBG PANGEA REIC.

He is a member of the Hellenic Olympic Committee and mentor in ENDEAVOR Greece. Rudolf Jurcik. Previously, served as CEO of MAF Hospitality Property in Dubai and as president of the Oberoi International Group in New Delhi.

Nicole Conrad-Forker. An attorney at law with experience in audit and corporate governance related issues. Vasiliki Karagianni. An experienced banking professional with managerial positions at various Greek banks, and senior consultant at a host of firms.

Since June has been a member of the board of ELEGKA SA. Source: OPAP data. The main sensitivities to the business are:. Concession risk : in , OPAP extended its exclusive concessions for retail games to Although it is possible that there will be further tax rises, the tax is already well above other regulated European countries, so we see this as reasonably unlikely.

Economic and political risk: the Greek economy has suffered well-documented challenges since and softness in retail spending is an ongoing risk, particularly exacerbated by COVID Gaming spend per adult as a percentage of GDP in Greece is already well above the European average.

This clearly presents a risk, particularly if GDP growth slows. To counterbalance, it is likely that online betting will continue to increase.

Cannibalisation risk: as players begin to play online and on VLTs, there is the strong possibility this will cannibalise the existing retail OTC business more than our forecasts assume.

However, interests have been aligned so far cost containment, business growth, dividend etc. During the last 12 months the share price has performed very well versus its peers see Exhibit 11 below.

Our primary valuation method for OPAP is a DCF-based valuation. Beyond our explicit forecast period we assume a gradual fade down in annual revenue growth to 1.

We use a WACC of 7. The sensitivity of the valuation to changes in WACC and terminal growth rate assumptions is shown below. Terminal growth rate. Source: Edison Investment Research.

Although OPAP is a listed gaming business, its business model is different from the other listed European gaming companies ie they are not monopolies, mostly do not participate in lotteries, and usually have a higher percentage of online revenue. Valuations for some companies reflect hopes for higher growth in the US market as well as concerns about imminent potential regulation changes.

As OPAP begins to grow its online presence, the comparison with other peers will likely become more relevant. OPAP trades at a discount to the broader average on all multiples and its new dividend policy with a high payout ratio means it offers a superior dividend yield.

Exhibit Peer valuations. Share price local ccy. com AG. Betsson AB. Entain PLC. Flutter Entertainment PLC. La Francaise des Jeux SA. Kindred Group PLC. LeoVegas AB publ. Rank Group PLC. Source: Refinitiv, Edison Investment Research. Note: Priced 27 April Edison FY21e. Growth y-o-y.

Sports Betting. Online Betting. Other Online. Gross gaming revenue GGR. Management believes the easing of COVID-related restrictions led to a gradual recovery in footfall but attendance by occasional players has room for further improvement.

In Exhibit 13 we show the individual performances of OPAP and Stoiximan. Exhibit Performance of OPAP and Stoiximan. Net gaming revenue NGR.

FY22 guidance: Strong growth anticipated by management. Management has provided its first ever financial guidance for the year ahead as a sign of confidence in the Fast Forward strategy, the momentum of its online activities and lower expected disruption from COVID in its retail store, while recognising the challenges of the macroeconomic situation ie higher inflation and the war in Ukraine.

The latter may prove conservative if the new gaming initiatives re-invigorate their growth rates. Exhibit New forecasts. Cash flow and balance sheet: Degearing, higher shareholder returns.

Working capital was a positive inflow versus an outflow in FY Exhibit Dividends and capital distributions. Exhibit Financial summary.

Year end 31 December. INCOME STATEMENT. Cost of Sales. Gross Profit. Other Income. Operating profit before amort. and excepts. Share-based payments. Reported operating profit. Net Interest. Profit Before Tax norm. Profit Before Tax reported. Reported tax. Profit After Tax norm.

Profit After Tax reported. Minority interests. Net income normalised. Net income reported. Average Number of Shares Outstanding m. EPS - normalised c. EPS - normalised fully diluted c. Normalised Operating Margin.

BALANCE SHEET. Fixed Assets. Intangible Assets. Tangible Assets. Current Assets. Current Liabilities. Tax and social security.

Short term borrowings. Long Term Liabilities. Long term borrowings. Other long term liabilities. Net Assets. Shareholders' equity. CASH FLOW. Op Cash Flow before WC and tax. Working capital. Operating Cash Flow. Net interest.

Equity financing. Net new borrowings. Net Cash Flow. Opening cash. Closing cash. Contact details. Revenue by geography. Management team. CEO: Jan Karas. Executive chairman: Kamil Ziegler. Jan joined OPAP in and became CEO in January CFO: Pavel Mucha. Pavel became CFO in October , having joined from Sazka where he was CFO.

Principal shareholders. The Vanguard Group Inc. Alliance Bernstein. Capital Research Global Investors. Lazard Asset Management. Capital World Investors. General disclaimer and copyright. This report has been commissioned by OPAP and prepared and issued by Edison, in consideration of a fee payable by OPAP.

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Last close EUR0. KEFI Gold and Copper. MCap GBP32m. Last close GBP0. MCap EUR39m. Last close EUR9. Investment Strategy View All. It is headquartered in Athens and for many years OPAP was a state-owned gambling monopoly.

The company holds the exclusive rights to organize and manage numerical lotteries and sports betting in Greece. In the s, an effort to upgrade Greek sport and improve its infrastructure began. In this framework, the General Secretariat for Sports Greek: Γ.

Α was established in In order to secure funding, the idea to utilize revenue from football prognostics - following the example of other European countries - came to fruition. With this aim, OPAP was established in as a private legal entity under the umbrella of the General Secretariat for Sport.

c while geographically the game was limited to Athens, Thessaloniki and Piraeus. PRO-PO enjoyed success from the start. This was due, in part, to strong advertising campaigns. In the s the game saw various improvements such as the paying out winnings for slips with 11 correct predictions.

OPAP was present in 70 cities and in it had reached agencies. During this period, it moved its headquarters to Panepistimiou Street , opposite the National Library.

In March , OPAP launched its second game, named "6 from 36", an adaptation of a similar German game, the establishment of which was provided in the same royal decree as PRO-PO. There were 36 games on each slip and players had to predict 6 that would result in a draw with the most goals scored.

The game was initially met with approval but its slips dropped quickly resulting in the game being stopped in April During the military junta period , OPAP experienced impressive growth, helped by the promotion of sport by the dictatorial regime.

Agencies shot up to 2, from and in revenues amounted to 1. since After the end of the dictatorship , the impressive growth of OPAP continued. In agencies amounted to 2, and revenue stood at 7. At the same time, the management of its sponsorship became more transparent and was subject to parliamentary scrutiny.

OPAP funds contributed to the creation of hundreds of stadiums, closed gymnasiums and other sporting cites throughout the country, while its sponsorship were no longer limited to sport but extended to culture too.

At the end of the decade, agencies had reached 4, in number and two more games were introduced, LOTTO and PROTO, the conduct of which led to the significant upgrading of the Organization's computerization. LOTTO and TZOKER was launched in and PROTO in ; and followed by PROPOGOAL in Besides, was an important year in OPAP's history as Pame Stoixima, the first legal sports betting game, was launched in Greece.

This game would quickly turn into OPAP's most profitable product. In , OPAP turned into a Societe Anonyme , under the name OPAP S.

and the duration of this legal entity form was set at years. established OPAP Cyprus Ltd , which is primary responsible for the organization, conduct and marketing of the company's games in Cyprus.

In July , the HRADF and Hellenic Lotteries S. signed a concession agreement for the exclusive right to operate the Hellenic Republic's State Lotteries for a period of 12 years. In November , OPAP subsidiary, Horse Races S. acquired the year horse-race betting licence from HRADF , at the price of 40 million euros.

were held in the town of Markopoulo Attica, on Friday 22 January announced the launch of a partnership to make common pool betting on French races available to Greek punters.

also provides betting on British and South African horse racing. OPAP runs the following games: [5] [18]. The first PRO-PO slip was launched on 1 March and included 12 matches, as well as two substitutes, the results of which would be effective, only in case of postponement or cancellation of one or more of the 12 matches.

Matches were chosen from the final round of the Hellenic Championship of , the second division of the Athens Union of Football Clubs , the Piraeus Union of Football Clubs and the Macedonia Union of Football Clubs , as well as from the Italian championship.

This was Nikos Passaris, a resident of Athens , who won , Drachmas, an exceptionally high amount for that time. There were also 48 players with 11 correct forecasts, who shared the amount of 6, In November , the government of Greece shut down the Greek operations of Liverpool-based Stanleybet International , a European gambling company.

Stanleybet had recently opened two offices in Greece and was to be a major competitor to OPAP. One of the complaints expressed by protests during the Greek riots was the government's fast action in acting on behalf of OPAP to remove competition, whereas for issues affecting public safety or the rights of the people the government has been popularly thought to be slow-acting.

In , Stanleybet and two other UK-based companies, William Hill and Sportingbet , brought a legal action before the Symvoulio tis Epikrateias Council of State after their applications to OPAP for permission to provide sport betting services in Greece were rejected.