In the first half of 2025, OPAP, owned by Allwyn, recorded a robust 6.5% increase in group revenue compared to the previous year, driven predominantly by the impressive double-digit expansion within its iGaming division. By the end of June, OPAP’s gross gaming revenue (GGR) reached €1.15 billion, surpassing the €1.08 billion recorded in the same period last year, as reported on Wednesday.
Out of its five operational segments, four experienced growth during this period, with instant and passives being the only area to record a slight decline. The lottery continued to be the largest revenue contributor, closely followed by sports betting. However, it was the iGaming sector that registered the most significant growth, evidencing the growing importance of online gaming in OPAP’s portfolio.
iGaming revenue soared to €171.3 million in the first half, marking a 22.1% increase from the previous year. OPAP attributed this surge to heightened player engagement, a sentiment echoed by CEO Jan Karas. The iGaming segment recorded double-digit growth in both the first and second quarters of 2025, continuing a trend from 2024, confirming iGaming as OPAP’s primary growth engine. Karas noted that the strong performance was underpinned by continuous innovation in gaming offerings, improved user experience, and enhanced loyalty programs.
While iGaming surged, the lottery segment also posted positive results. Revenue from lotteries rose 3.9% year-on-year to €386.7 million, the largest of any OPAP segment. Within this segment, the Tzoker and Eurojackpot draws were highlighted as key growth drivers. Karas remarked on Tzoker’s ability to maintain high player engagement through a series of favorable jackpot rollovers, which extended into the third quarter. Eurojackpot, buoyed by a successful new communication campaign, also contributed positively, boosting foot traffic across OPAP’s retail outlets and benefiting all gaming verticals.
Sports betting saw a modest 5.2% rise in revenue to €368.2 million. The second quarter, however, presented challenges with a 1.9% decrease compared to the previous year, attributed to the tough comparisons faced due to the Euro 2024 football tournament. Despite this, growth in the first quarter mitigated some of these impacts, suggesting resilience in OPAP’s sports betting operations.
In addition, video lottery terminals (VLTs) recorded a 4.3% increase in revenue, reaching €173.7 million. This growth was attributed to product enhancements and ongoing upgrades to its terminal network, signaling OPAP’s commitment to maintaining a competitive edge in the VLT space.
Conversely, the instant and passives segment saw a slight revenue dip of 0.5% to €52.2 million. However, a return to growth in the second quarter indicated a potential turnaround, particularly with scratchcards reversing previous downward trends.
After accounting for GGR contributions and other levies and duties, net gaming revenue for the first half was €787.9 million, a 6.4% increase from last year. Although costs were on the rise, the revenue growth managed to offset this, pushing EBITDA up by 6.6% to €398.4 million. Operating profit saw a 7.3% increase to €329.8 million, while pre-tax profit rose 7.0% to €324.5 million. Following €84.5 million in income tax payments, OPAP concluded the half-year with a net profit of €329.7 million, which reflected a 6.6% year-on-year growth. This net profit was divided between €233.4 million allocated to the company’s owners and €6.3 million to non-controlling interests.
Looking specifically at the second quarter, GGR climbed 4.7% to €557.9 million, bolstered once again by double-digit growth in iGaming. The lottery, betting, VLT, and instant and passives segments also showed increases, demonstrating overall robust performance. Net gaming revenue in Q2 increased by 4.9% to €381.5 million, while gross profit rose 5.5% to €236.2 million. EBITDA grew by 4.3% to €191.3 million, with net profit to owners of the company increasing by 3.6% to €110 million.
Looking ahead, Karas expressed confidence in OPAP’s ability to achieve its financial and business goals for the full year 2025. He emphasized the importance of strategic priorities and ongoing commitment to ESG principles to create value for stakeholders, showcasing OPAP’s dedication to sustainable growth and innovation.
However, it’s crucial to consider a different perspective: the reliance on iGaming for growth might signal potential vulnerabilities. Market trends in online gaming can be volatile with regulatory changes and competitive pressures posing risks. OPAP’s future success will likely depend on balancing these aspects while diversifying further to mitigate potential market fluctuations. As the digital landscape evolves, both opportunities and challenges will shape the gaming industry’s trajectory, requiring nimble strategies to navigate the complex market dynamics.
4/5
