OPAP provided full information on all the effects it has on the work of the organization, on the operation, on the revenues and the profits from the lockdown that has been imposed, noting that the financial impact on a monthly basis is estimated at 130-140 million euros in revenues and about 50-53 million euros in profit level.
At the same time, the company has set three clear goals and priorities for this extraordinary period which are:
1. Protecting the health and safety of workers, agents and communities
2. Take measures to limit the effects in view of the forthcoming resumption of the company's activities in normal conditions
3. Protection of the financial position of the Group
The agency's management announces that it has recently secured additional funding of € 325 million (including overdrafts), bringing the total available liquidity to € 623 million today.
He also stressed that he proceeded to assess the cash situation and conducted a sensitivity analysis for its future cash flows, thus ensuring that the company has sufficient cash liquidity to repay its creditors and meet future payment obligations.
It also announces that the internet activity of the group, although it still has a small contribution to the total income, has nevertheless strengthened in the field of lotteries, in the last few days. This was helped by the addition of a third weekly draw to the Joker, which takes place every Tuesday, from March 31, 2020.
Analytically, the information of OPAP regarding the consequences due to the closure of the stores
Branch Network
On 13.03.2020, the Greek Government issued its decision to impose a temporary suspension of the operation of a number of retail stores, shopping malls and other public gathering places, with the aim of limiting the spread of the coronavirus. As a result, the operation of the OPAP and PLAY stores was suspended for two weeks, from 14.03.2020 until 31.03.2020, which was extended until 11.04.2020.
In addition, the racecourse facilities at Markopoulo Park remain closed. Also, the operation of OPAP stores in Cyprus was suspended, from 16.03.2020 to 15.04.2020. Finally, the measures to restrict the movement of citizens, which were imposed in Greece until 06.04.2020, also affect the distribution of Hellenic Lottery products (Scratches & Lotteries) by street vendors in.
Online activity
The internet activity of OPAP, although it still has a small contribution to the total income of the Group, has strengthened in the field of lotteries, in the last days after the suspension of the operation of our branch network. This was helped by the addition of a third weekly draw to the Joker, which takes place every Tuesday, from March 31, 2020.
Similar to other betting companies, the sports betting sector has been significantly affected by the postponement and / or cancellation of major sporting events worldwide. Overall, OPAP is promoting the further expansion of its online presence, by adding new games to its online product portfolio.
Impact on financial results
Recent developments are expected to significantly affect the company's financial performance for the financial year 2020. The extent of the impact will depend on factors such as the duration of the epidemic, the duration of the current restrictive measures, any additional measures taken by governments, and the magnitude of the consequent economic disorganization.
Regarding the branch network, the business model of OPAP is based exclusively on commercial agents (agents), who are reimbursed on the basis of a commission related to the revenue from games created. There are also corresponding revenue-based compensation agreements with providers, for some of our largest products, especially for VLTs and Sports Betting. This business model helps maintain fixed costs at a relatively low level, allowing OPAP to better manage its impact on profitability.
The financial impact on a monthly basis, assuming an extension of the existing constraints, is estimated at EUR 130-140 million at Net Income before Taxes (GGR) and at EUR 50-53 million at Profit before interest, taxes, depreciation and amortization (EBITDA). . The company is already taking all necessary steps to reduce this potential impact.
Balance sheet
Taking into account the current conditions, the uncertainty and the rapidly changing environment, OPAP aims to maximize the liquidity of the Group. OPAP is already safeguarding its cash flows, reviewing its investment plan, maintaining sufficient working capital and identifying cost savings opportunities that will not affect the successful operation of the Group in the long run. In addition, OPAP recently secured additional funding of € 325 million (including overdrafts), bringing its total available liquidity, on 1 April 2020, to € 623 million.
The management evaluated the cash situation of the company and carried out a sensitivity analysis for its future cash flows. It is also certain that the Company has sufficient cash liquidity to repay its creditors and fulfill future payment obligations.
Business Continuity
OPAP has implemented a series of measures to ensure the smooth operation of its business (to the limited extent that its products are currently available), implementing business continuity plans, where necessary, to ensure the rapid return of the company's activities, as soon as the restrictions are lifted. In addition, many divisions of the Group continue to operate normally, although a remote operating model is applied.
source: liberal.gr
At the same time, the company has set three clear goals and priorities for this extraordinary period which are:
1. Protecting the health and safety of workers, agents and communities
2. Take measures to limit the effects in view of the forthcoming resumption of the company's activities in normal conditions
3. Protection of the financial position of the Group
The agency's management announces that it has recently secured additional funding of € 325 million (including overdrafts), bringing the total available liquidity to € 623 million today.
He also stressed that he proceeded to assess the cash situation and conducted a sensitivity analysis for its future cash flows, thus ensuring that the company has sufficient cash liquidity to repay its creditors and meet future payment obligations.
It also announces that the internet activity of the group, although it still has a small contribution to the total income, has nevertheless strengthened in the field of lotteries, in the last few days. This was helped by the addition of a third weekly draw to the Joker, which takes place every Tuesday, from March 31, 2020.
Analytically, the information of OPAP regarding the consequences due to the closure of the stores
Branch Network
On 13.03.2020, the Greek Government issued its decision to impose a temporary suspension of the operation of a number of retail stores, shopping malls and other public gathering places, with the aim of limiting the spread of the coronavirus. As a result, the operation of the OPAP and PLAY stores was suspended for two weeks, from 14.03.2020 until 31.03.2020, which was extended until 11.04.2020.
In addition, the racecourse facilities at Markopoulo Park remain closed. Also, the operation of OPAP stores in Cyprus was suspended, from 16.03.2020 to 15.04.2020. Finally, the measures to restrict the movement of citizens, which were imposed in Greece until 06.04.2020, also affect the distribution of Hellenic Lottery products (Scratches & Lotteries) by street vendors in.
Online activity
The internet activity of OPAP, although it still has a small contribution to the total income of the Group, has strengthened in the field of lotteries, in the last days after the suspension of the operation of our branch network. This was helped by the addition of a third weekly draw to the Joker, which takes place every Tuesday, from March 31, 2020.
Similar to other betting companies, the sports betting sector has been significantly affected by the postponement and / or cancellation of major sporting events worldwide. Overall, OPAP is promoting the further expansion of its online presence, by adding new games to its online product portfolio.
Impact on financial results
Recent developments are expected to significantly affect the company's financial performance for the financial year 2020. The extent of the impact will depend on factors such as the duration of the epidemic, the duration of the current restrictive measures, any additional measures taken by governments, and the magnitude of the consequent economic disorganization.
Regarding the branch network, the business model of OPAP is based exclusively on commercial agents (agents), who are reimbursed on the basis of a commission related to the revenue from games created. There are also corresponding revenue-based compensation agreements with providers, for some of our largest products, especially for VLTs and Sports Betting. This business model helps maintain fixed costs at a relatively low level, allowing OPAP to better manage its impact on profitability.
The financial impact on a monthly basis, assuming an extension of the existing constraints, is estimated at EUR 130-140 million at Net Income before Taxes (GGR) and at EUR 50-53 million at Profit before interest, taxes, depreciation and amortization (EBITDA). . The company is already taking all necessary steps to reduce this potential impact.
Balance sheet
Taking into account the current conditions, the uncertainty and the rapidly changing environment, OPAP aims to maximize the liquidity of the Group. OPAP is already safeguarding its cash flows, reviewing its investment plan, maintaining sufficient working capital and identifying cost savings opportunities that will not affect the successful operation of the Group in the long run. In addition, OPAP recently secured additional funding of € 325 million (including overdrafts), bringing its total available liquidity, on 1 April 2020, to € 623 million.
The management evaluated the cash situation of the company and carried out a sensitivity analysis for its future cash flows. It is also certain that the Company has sufficient cash liquidity to repay its creditors and fulfill future payment obligations.
Business Continuity
OPAP has implemented a series of measures to ensure the smooth operation of its business (to the limited extent that its products are currently available), implementing business continuity plans, where necessary, to ensure the rapid return of the company's activities, as soon as the restrictions are lifted. In addition, many divisions of the Group continue to operate normally, although a remote operating model is applied.
source: liberal.gr
