OPAP Q3 net profit up 64 pct

Business News

Greece-based OPAP posted on Tuesday a 64 percent rise in third-quarter net profit helped by the roll out of video lottery terminals and the reversal of litigation provisions.

OPAP, Europe’s fifth-biggest betting firm by revenues, said net profit in the July-to-September period was 48.1 million euros ($56.52 million), up from 29.3 million euros a year ago.

The firm said it reversed litigation provisions after rulings in its favor made them unnecessary, boosting third quarter profit by 14.8 million euros. It did not give details about the litigation.

OPAP, which was sold by the state in 2013, launched a new business for video lottery terminals this year.

It said it operated 5,297 terminals at the end of September, helping lift gross revenues by 12 percent to 357.4 million euros in the third quarter.

It said the roll out of the new terminals would pick up in the final quarter of 2017, when it plans to have 10,000 in place.

The Greek parliament passed a law on Tuesday to reduce the number of gambling machines, known as VLTs, allowed in Greece to 25,000 from 35,000 by the end of 2019 to reduce public exposure to gambling and ensure more effective supervision by the authorities.

The law also extended OPAP’s licence by eight years.

OPAP has said it expects no impact from the new law.