OPAP : FY 2023 Financial Results - Press Release

News Release

FY 2023 FINANCIAL PERFORMANCE

Broad-based growth leads to new €2bn GGR high

ATHENS, Greece - March 13, 2024 - OPAP S.A. (OPAr.AT, OPAP:GA), the leading gaming operator in Greece,

announces its consolidated financial results for the period ended December 31st, 2023, prepared in accordance with International Financial Reporting Standards (IFRS).

• FY'23 Gross Gaming Revenue (GGR) reached record high levels of €2,087.7m vs €1,939.0m in FY'22, higher by 7.7% y-o-y on the back of solid online performance and retail growth. Q4 2023 GGR came in at €581.2m, an increase of 7.5% y-o-y, reflecting the normalization of sportsbook payout after Q3 & positive early signs from the revamp of our draw-based games.
• Gross Profit (from gaming operations) in FY'23 increased by 6.7% y-o-y to €852.3m (FY'22: €798.8m), following top-line growth and representing a strong 41% margin. Q4'23 was higher by 5.5% y-o-y at €236.2m (Q4'22: €223.9m).
• Operating Expenses in FY'23 were €413.6m vs €365.1m in FY'22, higher by 13.3% y-o-y to support greater revenues. Q4'23 Opex reached €114.6m, higher by 0.6% y-o-y driven mainly by higher payroll expenses. On a comparable basis, excluding one-off items, FY'23 Opex increased by 8.0% y-o-y, while increasing by 1.1% y-o-y in Q4'23.
• FY'23 EBITDA was broadly stable (-0.8%y-o-y) at €730.0m (FY'22: €736.0m) or at €744.9m (-0.2%y-o-
  y) on a recurring basis, exceeding our latest outlook. Q4'23 EBITDA came in at €210.2m (Q4'22: €202.7m) up by 3.7% y-o-y or at €197.6m l-f-l(-3.1%y-o-y).
• Net Profit in FY'23 stood at €408.3m (FY'22: €592.3m), down by 31.1% y-o-y. Q4'23 Net Profit stood at
  €100.6m (Q4'22: €306.5m), lower by 67.2% y-o-y mainly due a one-off profit in 2022. On a l-f-l basis and after excluding one-off items in both years, Net Profit in FY'23 landed at €439.3m, up by 0.7% y-o-y, and was €109.7m in Q4'23.
• Robust financial position, with Net Debt / EBITDA at 0.23x (0.27x incl. leases).
• Total Shareholders Remuneration for FY'23 at €1.85 per share:

1. €1.00 interim dividend, already paid on November 9th, 2023

• 1. €0.60 Remaining DPS, to be paid / Ex-div. date April 29th / Payment date May 9th o €0.25 Capital Return, to be paid / Ex-rights date June 25th / Payment date July 1st
• FY'24 outlook: GGR €2,150m - 2,200m & EBITDA €750m - 770m

1. OVERVIEW

		(€ 'm)			Q4 2023			Q4 2022			Δ%			FY 2023			FY 2022			Δ%
		GGR (Gross Gaming		581.2		540.9			7.5%		2,087.7		1,939.0			7.7%
		Revenue)
		NGR (Net Gaming		399.2		376.7			6.0%		1,435.8		1,333.4			7.7%
		Revenue)1
		Gross Profit (from gaming		236.2		223.9			5.5%		852.3		798.8			6.7%
		operations) 2
		Operating Expenses		114.6		113.9			0.6%		413.6		365.1			13.3%
		Recurring Operating		113.8		112.6			1.1%		385.3		356.8			8.0%
		expenses
		EBITDA		210.2		202.7			3.7%		730.0		736.0			-0.8%
		EBITDA margin			36.2%			37.5%			-			35.0%			38.0%			-
		Recurring EBITDA		197.6		204.0			-3.1%		744.9		746.2			-0.2%
		Net profit		100.6		306.5			-67.2%		408.3		592.3			-31.1%
		Net profit margin			17.3%			56.7%			-			19.6%			30.5%			-
		Recurring Net profit		109.7		127.5			-13.9%		439.3		436.0			0.7%
		EPS (in €)		0.2729		0.8610			-68.3%		1.1196		1.6711			-33.0%
	1 GGR-GGR contribution
	2 NGR-Agents'commission-other Direct costs
OPAP S.A. Consolidated Financial Statements
for the Fiscal Year ended December 31st, 2023													1

[Public]

News Release

FY 2023 FINANCIAL PERFORMANCE

Revenues OPAP's revenues (GGR) in FY

(GGR) 2023 increased by 7.7% y-o-y, reaching €2,087.7m (FY 2022: €1,939.0m) primarily driven by strong online growth alongside a solid retail performance.

Q4 2023 GGR landed at the highest ever level of €581.2m, up by 7.5% y-o-y (Q4 2022: €540.9m) on the back of increased playability in retail and a robust online contribution.

Gross Profit Gross Profit from gaming

(from operations in FY 2023 stood at

gaming €852.3m compared with €798.8m operations)1 in FY 2022, higher by 6.7% y-o-y as a result of top line growth. Q4 2023 Gross Profit increased by 5.5% y-o-y reaching €236.2m vs

€223.9m in Q4 2022.

EBITDA	EBITDA in	FY 2023 stood	at	Reported figures
	€730.0m versus €736.0m in FY
	2022, lower by 0.8% y-o-y or -
	0.2% l-f-l. Q4 2023 EBITDA
	reached €210.2m on the back of
	higher top line performance and
	one-off other operating income of
	€13.4m	relating	to	the
	derecognition of the	Markopoulo
	Park lease liability, up by 3.7% y-
	o-y(-3.1l-f-l).

Recurring figures

*Excl. one-off expenses of €14.9m in FY'23 and expenses of €10.2m in FY'22 (income of €12.6m in Q4'23 and expenses of €1.3m in Q4'22)

1 GGR - GGR contribution - Agents' commission - Other Direct costs

OPAP S.A. Consolidated Financial Statements
for the Fiscal Year ended December 31st, 2023	2

[Public]

	News Release
	FY 2023 FINANCIAL PERFORMANCE
Net Profit Net Profit in FY 2023 stood at	Reported figures
€408.3m versus €592.3m in FY
2022, lower by 31.1% y-o-y or
+0.7% on a l-f-l basis.
Q4 2023 Net Profit came in at
€100.6m, lower by 67.2% y-o-y,
mainly due to a one-off profit in
Q4'22, which included a €181.3m
profit from the disposal of Betano.
On a l-f-l basis, Net Profit
decreased by 13.9% y-o-y on the
back of higher deferred taxes in
Q4'23.
	Recurring figures

*Excl. one-off expenses of €30.9m in FY'23 and income of €156.3m in FY'22 (expenses of €9.1m in Q4'23 and income of €179.1m in Q4'22)

Comment of OPAP's CEO, Mr. Jan Karas, on the Q4 2023 results:

"OPAP concluded 2023 with the strongest Q4 ever and achieved record revenues. This development clearly reflects the consistent and effective implementation of our business strategy throughout the year, as well as our ability to pursue and achieve ambitious goals.

In Q4'23, both our retail and online business posted solid growth, driven by our continuous focus on digitalization. As a result of last quarter's positive financial and operating performance, recurring EBITDA outperformed our latest outlook.

In line with our steadfast commitment to generating value for OPAP's shareholders, we are pleased to be proposing a generous total shareholder remuneration of €1.85 per share for FY'23, including the already paid interim dividend of €1.00 per share.

As regards our business initiatives, we are excited by the recent launch of Eurojackpot in Greece, which is a milestone for OPAP and follows the successful repositioning of Lotto and Tzoker. The overall revamp of our draw-based portfolio highlights our commitment to responding to customers' needs and expectations, through product innovations.

Looking ahead, in line with our Fast Forward business strategy, we remain committed to further upgrading our proposition, securing sound growth and profitability, rewarding our shareholders and delivering on our sustainability and social responsibility objectives."

OPAP S.A. Consolidated Financial Statements
for the Fiscal Year ended December 31st, 2023	3

[Public]

News Release

FY 2023 FINANCIAL PERFORMANCE

2. FINANCIAL REVIEW

Revenues (GGR) per game
(€ '000)	Q4 2023	Q4 2022	Δ%	FY 2023	FY 2022	Δ%
Lottery	197,591	193,920	1.9	730,001	709,458	2.9
% total revenues	34.0	35.9	-	35.0	36.6	-
Betting	180,866	160,966	12.4	645,505	603,749	6.9
% total revenues	31.1	29.8	-	30.9	31.1	-
VLTs	96,203	93,428	3.0	344,522	318,365	8.2
% total revenues	16.6	17.3	-	16.5	16.4	-
Instant & Passives	30,201	31,872	-5.2	115,877	107,902	7.4
% total revenues	5.2	5.9	-	5.6	5.6	-
Online Casino	76,303	60,682	25.7	251,805	199,510	26.2
% total revenues	13.1	11.2	-	12.1	10.3	-
TOTAL REVENUES	581,164	540,867	7.5	2,087,710	1,938,985	7.7

Lottery Revenues from lottery reached €730.0m in FY 2023 versus €709.5m in FY 2022, higher by 2.9% y-o-y on the back of a solid ΚΙΝΟ performance. Lottery GGR in Q4 2023 increased by 1.9% y-o-y to €197.6m, mainly attributable to a strong Tzoker performance and the impressive Lotto growth following its transformation into an annuity game in Oct'23.

Betting Total betting revenues reached €645.5m in FY 2023 versus €603.7m in FY 2022, higher by 6.9% y-o-y on the back of a strong performance by Powerspin and Virtuals coupled with a solid online contribution. Betting GGR in Q4 2023 landed at €180.9m (Q4 2022: €161.0m), higher by 12.4% y-o-y, reflecting increased playability in Pame Stoixima in retail and a normalization of the payout to winners following a soft Q3.

OPAP S.A. Consolidated Financial Statements
for the Fiscal Year ended December 31st, 2023	4

[Public]

News Release

FY 2023 FINANCIAL PERFORMANCE

VLTs VLTs revenues in FY 2023 increased to €344.5m, higher by 8.2% y-o-y (FY 2022: €318.4m). In Q4 2023 VLTs revenues reached a record €96.2m, higher by 3.0% y-o-y due to the ongoing machines optimization.

Instant & Revenues from Instant & Passives stood

Passives at €115.9m in FY 2023 compared with €107.9m in FY 2022, higher by 7.4% y- o-y. Q4 2023 GGR stood at €30.2m, lower by 5.2% y-o-y.

Online Revenues from Online Casino grew

Casino significantly to €251.8m in FY 2023, up by 26.2% y-o-y (FY 2022: €199.5m). Q4 2023 revenues landed at €76.3m compared with €60.7m in Q4 2022, up by 25.7% y-o-y on the back of elevated engagement levels.

Gaming revenue related expense

		(€ '000)			Q4 2023			Q4 2022			Δ%			FY 2023			FY 2022			Δ%
		Agents' commission		113,998		107,756			5.8		407,337		382,993			6.4
		Other Direct costs		48,950		45,004			8.8		176,090		151,605			16.2
		Total			162,948			152,760			6.7			583,427			534,598			9.1
		% of total revenues (GGR)		28.0		28.2					27.9		27.6

Gaming Gaming revenue related expense in FY

revenue 2023 stood at €583.4m versus €534.6m

related in FY 2022, higher by 9.1% y-o-y, to

expense support elevated retail & online

operations alongside widespread inflationary pressures. Q4 2023 gaming revenue related expense was €162.9m vs. €152.8m in Q4 2022, higher by 6.7% y-o-y.

OPAP S.A. Consolidated Financial Statements
for the Fiscal Year ended December 31st, 2023	5

[Public]

News Release

FY 2023 FINANCIAL PERFORMANCE

Payroll expense

		(€ '000)			Q4 2023			Q4 2022			Δ%			FY 2023			FY 2022			Δ%
		Wages and salaries		17,176		17,054			0.7		69,527		65,387			6.3
		Social security costs		3,905		3,649			7.0		13,431		12,902			4.1
		Other staff costs		2,663		2,843			-6.3		8,832		6,215			42.1
		Total cost			23,744			23,547			0.8			91,791			84,503			8.6
		% of total revenues (GGR)		4.1		4.4					4.4		4.4

Payroll Payroll expense in FY 2023 stood at

expense €91.8m compared with €84.5m in FY 2022, higher by 8.6% y-o-y. Q4 2023 payroll expense increased marginally by 0.8% y-o-y to €23.7m.

Marketing expense

		(€ '000)			Q4 2023			Q4 2022			Δ%			FY 2023			FY 2022			Δ%
		CSR & sponsorship expense		11,189		12,294			-9.0		38,766		32,688			18.6
		Advertising expense		27,557		30,511			-9.7		84,590		79,012			7.1
		Total			38,746			42,806			-9.5			123,356			111,700			10.4
		% of total revenues (GGR)		6.7		7.9					5.9		5.8

Marketing Marketing expense in FY 2023

expense increased by 10.4% y-o-y to €123.4m vs €111.7m in FY 2022, on the back of increased spending in CSR and

sponsorships. Q4'23 marketing expenses decreased by 9.5% y-o-y partially due to easy comps.

	Other operating
	expense
		(€ '000)		Q4 2023		Q4 2022			Δ%		FY 2023		FY 2022			Δ%
		IT related costs		10,705		11,248			-4.8		39,655		37,353			6.2
		Utilities & Telco		3,297		3,378			-2.4		12,999		13,489			-3.6
		costs
		Rentals		228		123			85.7		941		853			10.3
		Inventory		1,875		1,569			19.5		6,711		5,006			34.1
		consumption
		Other		36,017		31,205			15.4		138,167		112,206			23.1
		Total		52,122		47,523			9.7		198,474		168,907			17.5
OPAP S.A. Consolidated Financial Statements
for the Fiscal Year ended December 31st, 2023								6

[Public]

News Release

FY 2023 FINANCIAL PERFORMANCE

Other Other operating expense in FY 2023 operating stood at €198.5m versus €168.9m in

expense FY 2022, higher by 17.5% y-o-y. On a l-f-l level (excl. one-off items in both years), other Opex increased by 6.0% y-o-y. Q4 2023 other operating expense was €52.1m, higher by 9.7% y-o-y (Q4 2022: €47.5m). On a comparable basis, other Opex increased by 11.0% y-o-y.

Cash Flows

		(€ '000)			FY 2023			FY 2022			Δ%
		Cash Flow from Operating Activities		527,594		659,800		-20.4%
		Cash Flow from Investing Activities		92,630		-53,235		-274.0%
		Cash Flow from Financing Activities		-857,323		-742,493		15.5%

Cash Flow from Cash flows from operating

Operating activities in FY 2023 stood at

Activities €527.6m versus €659.8m in FY 2022 on the back of increased tax outflows and payables.

Cash Flow from Cash flows from investing

Investing activities in FY 2023 amounted to

Activities an inflow of €92.6m, mainly attributed to the inflow from a Betano earn-out.

Cash Flow from Cash flows from financing

Financing activities in FY 2023 amounted to

Activities an outflow of €857.3m, constituting €687.9m of dividends and capital return distributions alongside a net repayment of borrowings of €128.2m.

OPAP S.A. Consolidated Financial Statements
for the Fiscal Year ended December 31st, 2023	7

[Public]

News Release

FY 2023 FINANCIAL PERFORMANCE

3. MAIN LATEST DEVELOPMENTS

Shareholders Remuneration FY'23 - Total €1.85 per share (including €1.00 interim DPS already paid in November '23)

• Annual General Meeting (AGM) & Dividend Payment
  The Board of Directors of OPAP intends to propose to the AGM to be held on 25 April 2024, the distribution of a €1.60 gross dividend per share for the fiscal year 2023, out of which €1.00 per share was already paid as interim dividend in November 2023. Subject to AGM approval, the ex-dividend date is set at 29 April 2024. Dividend payment to the entitled shareholders commences on 9 May 2024. OPAP's management welcomes proactive dialogue with investors and would like to invite its shareholders to participate in the AGM.
• Capital Return to the shareholders
  The Company's BoD intends to propose to the AGM to be held on 25 April 2024 the distribution of €0.25 per share as a capital return with an ex-rights date for capital return on 25 June 2024, and the commencement of payment on 1 July 2024.

OPAP has been awarded Top Employer Greece 2024

OPAP is among the country's top employers, and the company received the Top Employer in Greece 2024 certification. This honorary distinction highlights OPAP's dedication to the growth and development of its employees, in a work environment that stands out. Moreover, it underlines OPAP's strategic choice to implement integrated policies, focusing on enhancing the engagement of its people and offering unique work experience.

Cease of Greek Horse Races

As of 30 January 2024, the conduct of Greek horse races was ceased following Horse Races S.A.'s release from the respective obligation according to the Concession Agreement. In addition, Horse Races S.A. exercised its contractual right to terminate the Lease Agreement for the Athens Hippodrome at Markopoulo. It is noted that, despite the significant and long-term efforts by Horse Races S.A. since it took over this activity in 2016, and the company's continuous major investments, Greek horse races continued to decline, in a progressively escalating manner, while they remained a constantly loss-making and unsustainable business.

Eurojackpot launch

On 6 March 2024, OPAP launched Eurojackpot in Greece, one of the most popular multi-country lottery games in Europe, as part of its strategy to enhance, refresh and make more exciting its draw-based games portfolio and upgrade customers' experience. Eurojackpot offers players the opportunity to win multimillion prizes, with a minimum guaranteed jackpot of €10 million and maximum of €120 million. The game is played in 19 countries (incl. Greece) across Europe and has distributed more than €12 billion since its inception in 2012. By introducing Eurojackpot, OPAP aims to expand its customer base, generate incremental revenues creating value for its shareholders, while also contributing to the society and the economy of Greece.

Share Buyback evolution

As of 8 March 2024, 3,382,917 own shares have been purchased, since 3.10.2023 at a total cost of €52.5 million, resulting in the Company owning 5,212,541 treasury shares or 1.41% of shares issued.

OPAP S.A. Consolidated Financial Statements
for the Fiscal Year ended December 31st, 2023	8

[Public]

News Release

FY 2023 FINANCIAL PERFORMANCE

Conference Call Invitation

Q4 2023 Financial Results Conference Call

An analyst call will be held on Thursday, March 14th, 2024

at 04:00 PM (Athens) / 02:00 PM (London) / 10:00 AM (New York)

The corresponding video presentation will be posted on the Company's website / IR section

(https://investors.opap.gr/en/results-and-news/financial-statements/2023)

Participants will have the opportunity to watch the video presentation in advance

and join the Q&A conference call.

Dial-in Numbers:
UK participants please dial	+44	(0) 800 368 1063
Greek participants please dial	+30	211 180 2000
US participants please dial	+ 1 516 447 5632
Other International please dial	+44	(0) 203 0595 872

Live Webcast:

The conference call will be available via audio webcast in real time and you may join by linking at: https://www.opap.gr/23Q4or https://87399.themediaframe.eu/links/opap23Q4.html

If you experience any difficulty, please call + 30 210 9460803 or email at [e-mail]

CONTACTS

OPAP - 112 Athinon Ave., 104 42 Athens, Greece

Investor Relations - Tel: [phone] - [e-mail]

ATTACHMENTS

1. Statement of Financial Position
2. Income Statement
3. Statement of Comprehensive Income
4. Statement of Changes in Equity
5. 1. Consolidated Statement of Changes in Equity
   2. Separate Statement of Changes in Equity
6. Cash Flow Statement

OPAP S.A. Consolidated Financial Statements
for the Fiscal Year ended December 31st, 2023	9

[Public]

News Release

FY 2023 FINANCIAL PERFORMANCE

1. Statement of Financial Position

		Amounts in thousands of euro			GROUP		COMPANY
				31.12.2023		31.12.2022		31.12.2023			31.12.2022
		ASSETS
	Non - current assets
		Intangible assets			930,483		1,021,349		674,583			736,190
		Property, plant and equipment			45,470		56,752		44,183			54,581
		Right-of-use assets			24,871		32,135		21,218			18,342
		Investment properties			1,356		3,007		1,356			3,007
		Goodwill			342,688		342,688		-			-
		Investments in subsidiaries			-		-		446,412			575,412
		Trade receivables			3,093		748		3,093			748
		Other non - current assets			56,965		60,917		57,776			66,016
		Deferred tax assets			14,860		35,651		-			-
		Long - term investments			550		-		-			-
		Total non - current assets			1,420,335		1,553,246		1,248,621			1,454,296
	Current assets
		Inventories			5,075		5,552		2,496			2,879
		Trade receivables			104,259		102,123		50,668			57,924
		Current income tax assets			12,738		17		-			-
		Other current assets			66,791		182,284		43,864			35,757
		Short - term investments			3,556		3,634		-			-
		Cash and cash equivalents			487,334		724,433		149,953			247,796
		Total current assets			679,751		1,018,043		246,981			344,356
		Total Assets			2,100,086		2,571,289		1,495,603			1,798,652
		EQUITY & LIABILITIES
	Equity
		Share capital			111,019		109,003		111,019			109,003
		Share premium			105,482		165,148		105,482			165,148
		Reserves			37,006		36,334		37,006			36,334
		Treasury shares			(43,145)		(12,851)		(43,145)			(12,851)
		Retained earnings			530,289		745,146		335,070			420,891
		Equity attributable to owners of the			740,651		1,042,780		545,432			718,525
		Company
		Non-controlling interests			34,112		32,653		-			-
		Total equity			774,763		1,075,433		545,432			718,525
	Non-current liabilities
		Borrowings			586,569		506,679		586,454			466,565
		Lease liabilities			19,527		39,328		16,762			13,959
		Deferred tax liability			123,087		124,483		44,724			41,916
		Employee benefit plans			3,524		2,802		3,374			2,670
		Other non-current liabilities			2,312		3,141		-			-
		Total non-current liabilities			735,018		676,433		651,314			525,112
	Current liabilities
		Borrowings			73,976		281,707		61,804			311,533
		Lease liabilities			6,512		7,792		5,658			5,604
		Trade payables			201,501		181,684		87,695			84,329
		Employee benefit plans			3,508		3,464		1,501			3,464
		Provisions			12,291		10,823		12,244			10,820
		Current income tax liabilities			119,047		117,173		59,984			77,648
		Other current liabilities			173,469		216,781		69,971			61,617
		Total current liabilities			590,305		819,424		298,856			555,015
		Total liabilities			1,325,323		1,495,856		950,171			1,080,127
		Total Equity & Liabilities			2,100,086		2,571,289		1,495,603			1,798,652
OPAP S.A. Consolidated Financial Statements
for the Fiscal Year ended December 31st, 2023							10

[Public]