Last close As at 05/08/2026
EUR13.45
▲ −0.05 (−0.33%)
Market capitalisation
EUR10,848m
Research: Consumer
OPAP enjoyed good growth from its land-based activities, as well as through the continued expansion of its online activities in FY23, and the company surpassed its own profit expectations. Ongoing enhancements to OPAP’s offer, including the revitalisation of games, will support further growth in FY24.
OPAP |
A good end to FY23 |
FY23 results |
Travel and leisure |
19 March 2024 |
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OPAP is a research client of Edison Investment Research Limited |
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OPAP enjoyed good growth from its land-based activities, as well as through the continued expansion of its online activities in FY23, and the company surpassed its own profit expectations. Ongoing enhancements to OPAP’s offer, including the revitalisation of games, will support further growth in FY24.
Year end |
GGR* |
EBITDA** |
EPS** |
DPS |
P/E |
Yield |
12/22 |
1,939 |
733 |
1.27 |
1.45 |
13.3 |
8.6 |
12/23 |
2,088 |
745 |
1.26 |
1.80 |
13.4 |
10.7 |
12/24e |
2,185 |
763 |
1.26 |
1.28 |
13.3 |
7.6 |
12/25e |
2,248 |
782 |
1.33 |
1.34 |
12.7 |
8.0 |
Note: *GGR: gross gaming revenue. **EBITDA and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
FY23 profit ahead of expectations
OPAP’s FY23 revenue grew by c 8% y-o-y to €2,088m, which is within management’s guidance of €2,060–2,140m, published with FY22’s results. Land-based revenues increased by c 5% and online activities rose by a healthy 18%. Underlying EBITDA of €745m surprised on the upside versus the recently reduced guided range of €720–740m; a lower gross margin was helped by stable cost ratios. The balance sheet remains lowly geared (net debt/EBITDA 0.3x) enabling attractive dividends to shareholders as well as share buybacks.
Modest upgrades to FY24 and FY25 estimates
Management’s first-time FY24 guidance for revenue of €2,150–2,200m and EBITDA of €750–770m, represents year-on-year growth of c 3–5% and c 1–3%, respectively. Management believes revenue growth will exceed personal consumption growth due to the ongoing benefits from the reinvigoration of the portfolio and the March 2024 launch of Eurojackpot in Greece. FY24 should also benefit relative to FY23 from the elimination of horse racing losses (low-single-digit euro millions) and we hope the non-recurrence of summer fire/weather-related disruption. We have increased our FY24 and FY25 revenue and EBITDA estimates by c 1% to reflect the higher FY23 base. Our new FY26 estimate assumes lower year-on-year revenue growth of c 3% than for FY24 and FY25, mainly given that demand is influenced by the external economic environment. Our estimates for dividend distributions, just above net income levels, look conservative versus its historic payout ratios.
Valuation: DCF valuation increased by 8%
The upgrade to estimates, roll forward of our DCF and reduction in WACC from 9.0% to 8.0% (which includes the recent change in bond yields) increases our DCF-based valuation to €20/share (from €18.5/share previously). Relative to consensus FY24 and FY25 expectations (Source: LSEG) for its Europeans peers, OPAP’s revenue growth is low (3–5%; peer median 8%). However, it is much more profitable with an EBIT margin of c 29% compared to the peer median of 14–16%. Its higher profitability leads to a modest premium (FY24e P/E of 13.3x; peer median 12.7x) and its generous dividend policy provides an attractive dividend yield (FY24e 7.6%; peer median 2.3%).
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Exhibit 1: Financial summary |
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Source: Company accounts, Edison Investment Research |
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Research: TMT
Team Internet’s FY23 results exceeded our forecasts and consensus on revenue and EBITDA. Online Marketing was driven by increased consumer engagement, reflecting investment in delivering more targeted ads across a wider array of channels. The group’s latest acquisition, Shinez, strengthens Online Marketing via diversification of publishers and is earnings accretive with scope for further synergies. Online Presence returned to strong revenue growth, driven by demand for exotic domains, pricing optimisation and strategic partnerships. Robust free cash flow enabled diverse capital allocation, focused on shareholder returns.