OPAP, Europe’s fourth-biggest betting firm, reported an 8.7 percent drop in first-quarter net profit on Monday, hurt by costs for the rollout of a new video lottery business.
OPAP said net profit came in at 39 million euros in the first three months of the year, down from 42.8 million euros in the same period a year ago.
OPAP, which was fully privatized in 2013, offers sports betting and lotteries through a network of approximately 5,750 outlets in Greece and Cyprus via a revenue-sharing scheme with agents.
It has been investing in new products and the upgrade of its outlets and launched a new business of video lottery terminals last year, which it sees as a catalyst for future growth.
Expenses for rolling out the terminals – which is expected to be concluded next year – and other games weighed on its bottom line, OPAP said.
Gross gaming revenues rose 5.3 percent to 358.9 million euros, with robust performance in its lottery operations more than offsetting weakness in sports betting.