Greek Organisation of Football Prognostics S A : OPAP SA - H1 2021 Financial Results - Press Release

News Release

H1 2021 FINANCIAL PERFORMANCE

Hefty online growth & solid retail recovery lead to strong first half

profitability despite fewer operating days

ATHENS, Greece - September 8, 2021 - OPAP S.A. (OPAr.AT, OPAP:GA), the leading gaming operator in

Greece, announces its consolidated financial results for the period ended June 30th, 2021, prepared in accordance with International Financial Reporting Standards (IFRS).

• H1 Gross Gaming Revenues (GGR) stood at €570.1m higher by 12.2% y-o-y despite c.40% fewer operating days. Q2'21 GGR at €395.9m, up by 120.4% assisted by retail reopening, increased online contribution and Stoiximan full consolidation.
• Gross Profit (from gaming operations) in H1'21 up by 30.2% at €248.8m (H1 2020: €191.1m). Q2 2021 gross
  profit (from gaming operations) increased by 151.9% at €173.2m (Q2 2020: €68.8m) due to revenue growth along with higher profitability margins despite Hellenic Lotteries' disproportional GGR contribution so as to meet the minimum annual €50m contractual threshold.
• EBITDA in H1 2021 higher by 99.8% at €204.8m (H1 2020: €102.5m) or +74.4% l-f-l after excluding one-off items in both years, also aided by the income related to the extension of the concession agreement. Q2
  2021 EBITDA came in at €143.5m (Q2 2020: €16.2m) up by €127.3m or up by €119.2m on a l-f-l basis after excluding one-off items in both years.
• Operating Expenses in H1 2021 at €175.1m vs €124.8m in H1 2020, higher by 40.3% y-o-y while Q2 2021 Opex reached €99.1m higher by 47.6% y-o-y. On a comparable basis, excluding Stoiximan's full consolidation impact and one-off items, H1 2021 Opex decreased by 12.4% y-o-y and Q2 2021 Opex decreased by 6.2% y-o-y.
• Net Profit in H1 2021 stood at €82.1m (H1 2020: €20.4m) or +125.1% l-f-l. Q2 2021 Net Profit stood at
  €71.9m (Q2 2020: Losses of €15.1m) marking a strong return to profitability.
• Strong cash position, with Net Debt at €423.4m, and improved Net Debt / LTM EBITDA at 1.2x (1.3x incl. leases).
• VLTs and online continue to be key growth drivers.
• BoD decides to distribute a 2021 interim DPS of €0.10 with scrip optionality. Ex-div. date on October 20th.

1. OVERVIEW

	(€ 'm)			Q2 2021			Q2 2020						H1 2021			H1 2020
	GGR (Gross Gaming		395.9		179.6			120.4%		570.1		507.9			12.2%
	Revenue)
	NGR (Net Gaming		268.0		117.9			127.4%		373.7		335.2			11.5%
	Revenue)1
	Gross Profit (from gaming		173.2		68.8			151.9%		248.8		191.1			30.2%
	operations) 2
	Operating Expenses		99.1		67.1			47.6%		175.1		124.8			40.3%
	EBITDA		143.5		16.2			787.8%		204.8		102.5			99.8%
	EBITDA margin			36.2%			9.0%						35.9%			20.2%
	Net profit		71.9		(15.1)			-		82.1		20.4			301.8%
	Net profit margin			18.2%			-8.4%						14.4%			4.0%
	EPS (in €)		0.2111		-0.0454			-		0.2419		0.0652			270.7%
1 GGR-GGR contribution

2 NGR-Agents'commission-other NGR related commission

OPAP S.A. Interim Consolidated Financial Statements
for the six-month period ended June 30th, 2021	1

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News Release

H1 2021 FINANCIAL PERFORMANCE

Revenues OPAP's revenues (GGR) in H1

(GGR) 2021 increased by 12.2% y-o-y reaching €570.1m despite the fact that stores in H1'21 had c.40% fewer operating days compared to H1'20. Q2 2021 stood higher by 120.4% y-o-y to €395.9m, as a result of retail recovery following the ease of lockdown restrictions on April 12th also aided by Stoiximan's full consolidation.

Gross Profit Gross Profit from gaming

(from operations in H1 2021 stood at

gaming €248.8m compared to €191.1m in operations)1 H1 2020 higher by 30.2% as a result of revenues' recovery. Q2 2021 Gross Profit increased by 2.5x y-o-y reaching €173.2m vs €68.8m in Q2 2020. Gross profit was also burdened by Hellenic Lotteries' disproportional GGR contribution so as to meet the annual contractual threshold of

€50m.

EBITDA EBITDA in H1 2021 stood at €204.8m versus €102.5m in H1 2020 higher by 99.8% or 74.4% l-f-l aided by the recognition of €100.1m income related to the extension of the concession agreement, along with Stoiximan contribution following its full consolidation. Q2 2021 EBITDA reached at €143.5m versus €16.2m in Q2 2020.

Reported figures

Recurring figures

				* Excl. one-off income of €14.0m in H1'21 and one-off income of
				€1.2m in Q2 2021 (expenses of €6.9m in H1 2020 and Q2 2020)
Net Profit	Net profit in H1	2021 stood	at	Reported figures
	€82.1m versus €20.4m in H1 2020
	up by 4.0x.
	On a l-f-l basis, excluding one-off
	items, H1 2021 net profit stood at
	€69.0m vs €30.7m in H1 2020
	while Q2 2021 net profits reached
	€70.9m versus	net losses	of

€4.9m in Q2 2020, also aided by the decreased nominal corporate tax rate now standing at 22%.

1 GGR - GGR contribution - Agents' commission - Other NGR related commission

OPAP S.A. Interim Consolidated Financial Statements
for the six-month period ended June 30th, 2021	2

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News Release

H1 2021 FINANCIAL PERFORMANCE

Recurring figures

* Excl. one-off income of €13.1m in H1'21 and income of €0.9m in Q2 2021 (expenses of €10.2m in H1 2020 and Q2 2020).

Comment of OPAP's CEO, Mr. Jan Karas, on the H1 2021 results:

"We are delighted to announce our Q2'21 set of results that demonstrate a strong return to normality. Our performance was clearly aided by solid retail recovery while online revenues retained a strong growth momentum.

Despite the COVID-19 restrictions still in place, we have successfully managed to attract customers back to our stores, thanks to our comprehensive commercial plan and constant focus on providing world-class gaming entertainment. This approach supports the recovery and sustainability of our partners' business. At the same time, we continue to lead the online market on the back of our long-term dual strategy with our investment in Kaizen Gaming continuing to pay off, while further enhancing and differentiating our OPAP branded online offering.

Overall, OPAP deploys a unique business model constantly developing and delivering services to better meet our customers' expectations. Looking forward, we remain committed to expand our online presence, digitalize the retail experience and evolve the brand and product portfolio so as to attract new audiences and further reactivate existing ones."

2. FINANCIAL REVIEW

	Revenues (GGR) per game
	(€ '000)	Q2 2021		Q2 2020	Δ%	H1 2021	H1 2020	Δ%
	Lottery	150,334		102,992	46.0	186,942	257,525	(27.4)
	% total revenues	38.0		57.3	-	32.8	50.7	-
	Betting	131,603		38,757	239.6	213,964	126,742	68.8
	% total revenues	33.2		21.6	-	37.5	25.0	-
	VLTs	36,130		21,786	65.8	36,133	88,401	(59.1)
	% total revenues	9.1		12.1	-	6.3	17.4	-
	Instant & Passives	29,220		14,401	102.9	37,092	33,579	10.5
	% total revenues	7.4		8.0	-	6.5	6.6	-
	Online Casino	48,607		1,680	2,794.2	95,951	1,680	5,613.1
	% total revenues	12.3		0.001	-	16.8	.0	-
	TOTAL REVENUES	395,893		179,615	120.4	570,082	507,927	12.2
OPAP S.A. Interim Consolidated Financial Statements
for the six-month period ended June 30th, 2021					3

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H1 2021 FINANCIAL PERFORMANCE

Lottery Revenues from lottery reached €186.9m in H1 2021 versus €257.5m in H1 2020, lower by 27.4% y-o-y on the back of stores' closure for almost double days in H1 2021 compared to H1 2020. Online Joker continued its growth in H1 2021 both in terms of performance and customer acquisition. Lottery GGR in Q2 2021 increased by 46.0% standing at €150.3m on the back of retail reopening on April 12th, compared to Q2 2020, when stores remained closed for almost half of the quarter.

Betting Total betting revenues reached €213.9m in H1 2021 versus €126.7m in H1 2020 higher by 68.8% y-o-y mostly due to Stoiximan full consolidation. Betting GGR in Q2 2021 increased by 3.4x y-o- y standing at €131.6m on the back of retail outlets' reopening in early April and online increased contribution.

VLTs VLTs revenues in H1 2021 stood lower by 59.1% reaching €36.1m versus €88.4m in H1 2020 on the back of stores' closure for almost 5 out of 6 months in the 1st semester of 2021. In Q2 2021 VLTs remained suspended for 54 days vs 69 days in Q2'20 and GGR increased by 65.8% reaching €36.1m versus €21.8m in Q2 2020.

Instant & Revenues from Instant & Passives stood

Passives at €37.1m in H1 2021 compared to €33.6m in H1 2020, higher by 10.5% y- o-y. Q2 2021 GGR stood at €29.2m double on a y-o-y basis, on the back of new Scratch variants and market reopening.

Online Revenues from Online Casino stood at

Casino €95.9m in H1 2021 and €48.6m in Q2 2021, continuing an exceptional performance also including the relevant Stoiximan stream since December 2020.

OPAP S.A. Interim Consolidated Financial Statements
for the six-month period ended June 30th, 2021	4

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News Release

H1 2021 FINANCIAL PERFORMANCE

Gaming revenue related expense

	(€ '000)			Q2 2021			Q2 2020			%			H1 2021			H1 2020			%
	Agents' commission	71,258		40,517			75.9		85,468		119,513			(28.5)
	Other NGR related commission	23,548		8,583			174.3		39,387		24,606			60.1
	Total			94,806			49,100			93.1			124,855			144,119			(13.4)
	% of total revenues (GGR)	23.9		27.3					21.9		28.4
Gaming	Gaming revenue related expense in H1
revenue	2021 dropped by 13.4% y-o-y reaching
related	€124.9m versus €144.1m in H1 2020
expense	mainly due to increased online that
		comes with a higher gross profit margin.
		Q2 2021 gaming	revenue	related

expense reached €94.8m vs. €49.1m in Q2 2021 due to the retail reopening in the beginning of Q2'21.

Payroll expense

	(€ '000)			Q2 2021			Q2 2020			%			H1 2021			H1 2020			%
	Wages and salaries		12,880		15,518			(17.0)		28,131		31,843			(11.7)
	Social security costs		3,022		3,551			(14.9)		5,336		6,321			(15.6)
	Other staff costs		1,850		884			109.3		2,722		1,753			55.3
	Sub Total			17,751			19,952			(11.0)			36,190			39,917			(9.3)
	Stoiximan (GR/CY)		2,501		-			-		2,662		-			-
	Total cost			20,252			19,952			1.5			38,852			39,917			(2.7)
	% of total revenues (GGR)		5.1		11.1					6.8		7.9

Payroll Payroll expense in Η1 2021 stood at

expense €38.9m compared to €39.9m in Η1 2020, decreased by 2.7%. On a comparable basis and after excluding Stoiximan impact, H1'21 payroll expenses decreased by 9.3% y-o-y, reflecting headcount optimization. Q2 2021 payroll expense increased by 1.5% y-o-y at €20.3m but came in lower by 11% y-o-y on a comparable basis.

	Marketing expense
	(€ '000)	Q2 2021		Q2 2020	%	H1 2021	H1 2020	%
	CSR & sponsorship expense	4,523		3,838	17.9	8,494	8,925	(4.8)
	Advertising expense	13,909		6,960	99.9	20,651	14,479	42.6
	Sub Total	18,432		10,798	70.7	29,146	23,404	24.5
	Stoiximan (GR/CY)	9,890		0	-	15,213		-
	Total	28,323		10,798	162.3	44,359	23,404	89.5
OPAP S.A. Interim Consolidated Financial Statements
for the six-month period ended June 30th, 2021					5

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