Quarterly Report • Sep 8, 2021
Quarterly Report
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[Business/Internal Use]
| A. Representation of the Members of the Board of Directors 4 |
|---|
| B. Six‐month Board of Directors' Report for the period 01.01.2021 to 30.06.2021 5 |
| 1. Financial progress and performances of reporting period 5 |
| 2. Significant events during the first semester of 2021 and their effect on the interim condensed financial information 7 |
| 3. Main risks and uncertainties in the second semester of 2021 9 |
| 4. Company's strategy and Group's prospects for the second semester of 2021 16 |
| 5. Related Parties significant transactions 20 |
| 6. Subsequent events 21 |
| 7. Alternative Performance Indicators (API) 22 |
| C. Interim Condensed Financial Information 24 |
| Report on Review of Interim Financial Information 25 |
| 1. Condensed Statement of Financial Position 27 |
| 2. Condensed Income Statement 29 |
| 2.1. Condensed Consolidated Income Statement 29 |
| 2.2. Condensed Income Statement of the Company 30 |
| 3. Condensed Statement of Comprehensive Income 31 |
| 3.1. Condensed Consolidated Statement of Comprehensive Income 31 |
| 3.2. Condensed Statement of Comprehensive Income of the Company 32 |
| 4. Condensed Statement of Changes in Equity 33 |
| 4.1. Condensed Consolidated Statement of Changes in Equity 33 |
| 4.2. Condensed Statement of Changes in Equity of the Company 34 |
| 5. Condensed Cash Flow Statement 35 |
| Notes on the Interim Condensed Financial Information 37 |
| 1. General information for the Group and the Company 37 |
| 2. Basis for the preparation of the Interim Condensed Financial Information 37 |
| 2.1. Important accounting decisions, estimations and assumptions 38 |
| 2.2. New Standards, amendments to standards and interpretations 39 |
| 3. Group structure 43 |
| 4. Operating segments 44 |
| 5. Intangible assets 48 |
| 6. Property, plant and equipment 50 |
| 7. Right‐of‐Use Assets and Lease liabilities 52 |
| 8. Investments in associates 55 |
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| 9. Other non ‐ current assets 55 |
| 10. Income taxes – Deferred taxes 56 |
| 11. Inventories 58 |
| 12. Trade receivables 59 |
| 13. Cash and cash equivalents 60 |
| 14. Non‐controlling interests 60 |
| 15. Borrowings 61 |
| 16. Other non‐current liabilities 63 |
| 17. Trade payables 64 |
| 18. Other current liabilities 64 |
| 19. Dividends 65 |
| 20. GGR Contribution and other levies and duties 65 |
| 21. Agents' commissions 66 |
| 22. Other NGR related commissions 66 |
| 23. Other operating income 67 |
| 24. Other operating income related to the extension of the concession of the exclusive right 67 |
| 25. Other operating cost 68 |
| 26. Payroll expenses 68 |
| 27. Marketing expenses 68 |
| 28. Other operating expenses 69 |
| 29. Finance income / (costs) 70 |
| 30. Income tax expense 71 |
| 31. Related party disclosures 72 |
| 32. Financial instruments and financial risk factors 75 |
| 33. Subsequent events 81 |
| D. Report on Use of Funds Raised from the issuance of Non‐Convertible Bond Loan through payment in cash for the period from 01.01.2021 to 30.06.2021 83 |
| Report of factual findings in connection with the "Report on Use of Funds Raised from the issuance of Non-Convertible Bond Loan through payment in cash for the period |
(according to article 5, par. 2 of L. 3556/2007)
The members of the Board of Directors of OPAP S.A.:
notify and certify that as far as we know:
Athens, 07 September 2021
Chairman Board Member and Chief Executive Officer
Board Member and Chief Financial Officer
4
Kamil Ziegler Jan Karas Pavel Mucha
(according to par. 6 of article 5 of the Law 3556/2007 and the decisions of Hellenic Capital Market Commission Decision 8/754/14.04.2016 article 4 and Decision 1/434/2007 article 3)
The six‐month Board of Directors' Report of OPAP S.A. (the "Company" or "Parent company") at hand refers to the first semester of 2021 and was written in compliance with the provisions set forth in article 5 of the Law 3556/2007 and the relevant Hellenic Capital Market Commission Rules issued by the Board of Directors of the Hellenic Capital Market Commission.
The report describes briefly the financial outcome of the Group and the Company respectively for the first semester of 2021, as well as significant events which took place during the same period and had a significant effect on the Interim Condensed Financial Information. It also describes significant risks that may arise during the following remaining period of the fiscal year 2021 and finally, the material transactions with the Company's and the Group's related parties.
The basic Group's financials are presented below:
| (Amounts in thousands of euro) | 01.01‐ 30.06.2021 |
01.01‐ 30.06.2020 |
Δ % |
|---|---|---|---|
| Revenue (GGR) | 570,082 | 507,927 | 12.2% |
| GGR contribution and other levies and duties | (196,406) | (172,691) | 13.7% |
| Net gaming revenue (NGR) | 373,676 | 335,236 | 11.5% |
| Profit before interest, tax, depreciation and amortization (EBITDA) |
204,841 | 102,547 | 99.8% |
| Profit before tax | 116,846 | 24,815 | 370.9% |
| Profit for the period | 83,546 | 18,060 | 362.6% |
| Net increase/(decrease) in cash and cash equivalents | |||
| Net cash inflow from operating activities | 140,405 | 70,221 | 99.9% |
| Net cash outflow from investing activities | (29,709) | (393) | 7,456.7% |
| Net cash outflow from financing activities | (216) | (75,394) | (99.7%) |
Group's results for the first semester of 2021 were impacted by the full consolidation of STOIXIMAN's business (Greek and Cypriot operations) following the acquisition of control from 01.12.2020. Given the substantial contribution of the STOIXIMAN business (Greek and Cypriot operations), consolidated figures are not comparable with those of the comparative period. The following table includes comparison of the Group's results excluding contribution from STOIXIMAN business (Greek and Cypriot operations). In the comparative period, STOIXIMAN business (Greek and Cypriot operations) was part of the associate KAIZEN GAMING LIMITED. Financials excluding STOIXIMAN business (Greek and Cypriot operations) were calculated by deducting, per line item, the contribution of STOIXIMAN's business (Greek and Cypriot operations) from the consolidated results of the Group. This also includes deduction of the respective share of profit of associate for the comparative period.
| (Amounts in thousands of euro) | 01.01‐30.06.2021 excluding STOIXIMAN business (Greek and Cypriot operations) |
01.01‐ 30.06.2020 |
Δ % |
|---|---|---|---|
| Revenue (GGR) | 376,461 | 507,927 | (25.9%) |
| GGR contribution and other levies and duties | (123,494) | (172,691) | (28.5%) |
| Net gaming revenue (NGR) | 252,967 | 335,236 | (24.5%) |
| Profit before interest, tax, depreciation and amortization (EBITDA) |
165,814 | 99,847 | 66.1% |
| Profit before tax | 77,807 | 22,115 | 251.8% |
| Profit for the period | 58,251 | 15,361 | 279.2% |
| Net increase/(decrease) in cash and cash equivalents |
|||
| Net cash inflow from operating activities | 105,893 | 70,221 | 50.8% |
| Net cash outflow from investing activities | (24,734) | (393) | 6,191.2% |
| Net cash outflow from financing activities | (212) | (75,394) | (99.7%) |
The basic Company's financials are presented below:
| (Amounts in thousands of euro) | 01.01‐ 30.06.2021 |
01.01‐ 30.06.2020 |
Δ % |
|---|---|---|---|
| Revenue (GGR) | 303,396 | 439,728 | (31.0%) |
| GGR contribution and other levies and duties | (92,518) | (149,334) | (38.0%) |
| Net gaming revenue (NGR) | 210,878 | 290,394 | (27.4%) |
| Profit before interest, tax, depreciation and amortization (EBITDA) |
161,274 | 93,188 | 73.1% |
| Profit before tax | 91,978 | 45,229 | 103.4% |
| Profit for the period | 72,766 | 33,447 | 117.6% |
| Net increase/(decrease) in cash and cash equivalents | |||
| Net cash inflow from operating activities | 113,493 | 65,257 | 73.9% |
| Net cash outflow from investing activities | (18,462) | (79,423) | (76.8%) |
| Net cash outflow from financing activities | (1,174) | (72,980) | (98.4%) |
7
On 01.01.2021, OPAP SPORTS LTD was granted a Class "B" license from the National Betting Authority of Cyprus and now can provide electronic (online) betting services. The provision of such services is temporarily suspended.
HELLENIC LOTTERIES S.A. has formally contested that it owes anything more than € 12,279 th. to the Hellenic Republic for the fiscal year 2020 under the Concession Agreement. That amount represents 30% of the annual GGR of HELLENIC LOTTERIES S.A. for 2020 and it has already been remitted by HELLENIC LOTTERIES S.A. to the Hellenic Republic, pursuant to the Concession Agreement. HELLENIC LOTTERIES S.A. has formally taken the position vis‐à‐vis the Hellenic Republic, supported by advice by external counsel, that no additional amount was due to reach the € 50,000 th. Minimum Annual Fee provided for in Clause 11.2 of the Concession Agreement, given the impact of pandemic‐related restrictionsimposed by the State on the operation of HELLENIC LOTTERIES S.A.. This position is based on the Force Majeure clause of the Concession Agreement and applicable provisions of Greek law regarding impossibility of performance and unforeseeable changes in circumstances. For these reasons HELLENIC LOTTERIES S.A. has filed a Request for Arbitration against the Hellenic Republic and the Hellenic Asset Development Fund under the LCIA Arbitration Rules, pursuant to Clause 32 of the Concession Agreement. HELLENIC LOTTERIES S.A.'s principal claim seeks declarations that the Minimum Annual Fee is not due; and also an extension of the term of the Concession Agreement and/or a refund of part of the upfront € 190,000 th. Financial Consideration (both to be quantified at a later stage). The matter is therefore pending before the competent tribunal, which has exclusive jurisdiction to pronounce in a final and binding manner. On prudential grounds, however, HELLENIC LOTTERIES S.A. has formed a provision, notably in the light of collateral undertakings per Clause 26.3 of the Concession Agreement.
The 21st Annual Ordinary Shareholders General Meeting, held on 17.06.2021, approved a gross dividend of € 0.55 per share for the fiscal year 2020. The total approved gross dividend amounted to € 186,778 th.. The distribution was proceeded through the implementation of the general terms of the five‐year dividend reinvestment program as approved by the Ordinary General Meeting of the Shareholders of the Company, dated 22.05.2019.
TORA DIRECT SINGLE MEMBER S.A., according to the meeting of its Board of Directors dated 26.03.2021, resolved on the issuance of a common bond loan of € 11,000 th., divided to 11,000 bonds of € 1,000 each. OPAP S.A. subscribed for the whole amount of € 11,000 th.. The bond loan was partially repaid during the second quarter of 2021 by € 4,000 th. and the outstanding amount as at 30.06.2021 was € 7,000 th..
Following the publication of Law 4635/2019 regarding the licensing and operating of certain online games of chance in Greece namely Online Betting (including virtual games) and Other Online Games (online casino‐type games and Poker conducted live or with the use of a random number generator), on 26.02.2020, Hellenic Gaming Commission (the "HGC") invited all the transitional licensed gaming operators (including OPAP S.A. and STOIXIMAN LTD) to submit their applications for the granting of Type 1 License (Online Betting) and/or Type 2 License (Other Online Games) until 31.03.2020. The License Fee for the Type 1 License was set at € 3.000 th. and for the Type 2 License was set at € 2.000 th.. The duration of each license is for seven (7) years and can be renewed.
Before the lapse of the above mentioned deadline, each company submitted two separate applications to HGC for the awarding of both licenses. Then, on 05.08.2020 the new Online Regulation was published (Ministerial Decision no. 79835 EX 2020/24.07.2020), which contains an extensive set of regulatory, supervisory and control provisions aimed at ensuring the highest possible level of compliance with the requirements of the Law and the rules of responsible gaming for all licensed online games of chance providers in Greece.
Type 1 License and Type 2 License were granted to OPAP S.A. on 25.05.2021 and to STOIXIMAN LTD on 28.05.2021. The relevant Go‐Live dates were defined on 05.08.2021 for STOIXIMAN LTD and 10.08.2021 for OPAP S.A.
Since the coronavirus (COVID‐19) outbreak, OPAP has been closely monitoring and adopting all necessary measures in order to protect customers, employees and partners and also, to assure its business activities continuity in Greece and Cyprus, safeguarding the ramp‐up of the business along with the gradual ease of the limitations.
In Greece, the OPAP's retail network remained closed since the beginning of the year up until 12.04.2021 when the OPAP stores resumed operations and street vendors also restarted the distribution of HELLENIC LOTTERIES S.A. products (Scratch & Passive lotteries) as of the same date.
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800 Moreover, on 24.05.2021 the VLTs operations restarted in OPAP stores and PLAY stores resumed operations, while the horseracing facility in Markopoulo Park reopened on 17.05.2021. Finally, OPAP stores in Cyprus remained closed with local lockdowns in total for 41 days. Despite the fact that both the revenues and the profitability of the OPAP Group were notably affected by the aforementioned retail network closure however, the overall financial performance was boosted by the significant growth of the online along with the contribution of STOIXIMAN business (Greek and Cypriot operations), that is fully consolidated from 01.12.2020.
We note that as of 30.06.2020 OPAP S.A. included in its consolidation only the 36.75% of STOIXIMAN business (Greek and Cypriot operations) as part of the associate KAIZEN GAMING LIMITED through equity method.
Below we present the main risks and uncertainties to which Group is exposed.
On a macroeconomic level, the coronavirus outbreak continues to affect the Greek economy, in conjunction with the expansion of variants and the new waves of social distancing measures in order to contain the pandemic. The number of new cases and the vaccination rate will be important determinants for the recovery of the Greek economy.
It is worth mentioning, however that the perspectives for the recovery of the Greek economy in 2021 are particularly positive with the Greek Ministry of Finance estimating a 3.6% GDP growth, while other official international institutions project even higher rates. At the same time, the performance of tourism during the current period is very positive, a significant element with the high weight that this sector has in the Greek GDP. Moreover, particularly supportive for the recovery of the Greek economy are the funds that are to flow from the European Recovery Fund with the first bunches to be disbursed in the upcoming period of time.
All in all, the Group's activity is significantly affected by the disposable income & private consumption, which in turn are affected by the current economic conditionsin Greece,such asthe GDP, unemployment, inflation and taxation levels. As such, a potential deterioration of the aforementioned indicators together with a decline in economic sentiment and/or consumer confidence, could result in a decrease of the gaming related frequency and spending of our customers.
The European Commission endorsed Greece's € 30.5bn Recovery and Resilience Plan (RRF), an important step towards financing and supporting the implementation of crucial investments and reforms in the country and support economic growth in the coming years.
The gaming sector in Greece is intensively regulated by the Hellenic Gaming Commission. The Greek authorities have the right to unilaterally, respecting obligations coming from valid concession agreements, alter the legislative and regulatory framework that governs the manner and modus operandi of the games that the Group offers.
The developments in the Greek regulatory framework, drive evolving regulatory challenges for the Group. Changes in the regulatory environment may have a substantial impact, through restricting betting activities or changing compliance costs and taxes.
OPAP consistently complies with regulatory standards, while understands and addresses changing regulatory requirements in an efficient and effective manner. Additionally, a potential failure on the Group's part to comply with the governing rules and the regulatory framework, as well as the enactment of new laws or/and further regulatory enforcement could have a negative impact on the Group's business activities. Additionally, restrictions on advertising can reduce the ability to reach new customers, thus impacting the implementation of the strategic objectives to focus on sustainable value increase.
OPAP participates in the public consultations of laws and regulations related to the business activities of the Group which are submitted by the competent authorities (Hellenic Gaming Commission, Ministry of Finance etc). Furthermore, OPAP continually monitors the changing regulatory/legal landscape and through appropriate policies, processes and controls for a rational and balanced gaming regulation.
The Group's business activities and the sector in which it operates are subject to varioustaxes and charges, such as the special contribution regarding the games which is calculated based on the gross gaming revenue, the tax on players' winnings and the income tax of legal entities.
The Company is exposed to the risk of changes to the existing gaming taxation status or the gaming tax rates, creating unexpected increased costs for the business and impacting the implementation of Group's strategic objectives for sustainable revenues and additional investments. The Company is seeking to promptly respond to any potential tax changes, by maintaining the required tax planning resources and developing contingency plans so as to implement the required mitigating actions and to minimize the overall impact.
Market risk arises from the possibility that changes in market prices such as exchange rates and interest rates affect the results of the Group and the Company or the value of financial instruments held. The management of market risk consists in the effort of the Group and the Company to control their exposure to acceptable limits.
Currency risk is the risk that the fair values of the cash flows of a financial instrument fluctuate due to foreign currency changes. The Group operates in Greece and Cyprus, and there are not any agreements with suppliers in place in currencies other than in euro. All revenues from games are in euro, transactions and costs are denominated or based in euro, subsequently, there is no substantial foreign exchange risk. Additionally, the vast majority of the Group's cost base is, either proportional to our revenues(e.g. payout to winners, agents commission, vendorsrevenue‐based fees') or to transactions with domestic companies (e.g. IT, marketing).
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in the interest rates. The Group is exposed to interest rate risk due to the unhedged portion of its outstanding debt. The existing debt facilities, as of 30.06.2021, stand at € 1,044,408 th. and € 1,012,246 th. for the Group and the Company respectively.
On 30.06.2021, the floating‐rate loans of the Group which are exposed to interest rate risk are € 448,481 th. of debt or 43% of total debt. The remaining € 595,927 th. (57% of total debt) are fixed rate borrowings. Part of the risk, specifically € 97,217 th. or the 22% of the floating rate borrowing, is hedged via an interest rate swap. The Group follows all market developments and acts in a timely manner when needed.
The primary objective of the Group and the Company, relating to capital management is to ensure and maintain strong credit ability and healthy capital ratios to support the business plans and maximize value for the benefit of shareholders. The Group maintains a solid capital structure, as depicted in the Net Debt/EBITDA ratio of 1.3x as of 30.06.2021. In addition, it retains an efficient cash conversion cycle thus optimizing the operating cash required in order to secure its daily operations, while diversifying its cash reserves so as to achieve flexible working capital management.
The Group manages the capital structure and makes the necessary adjustments to conform to changes in business and economic environment in which they operate. The Group and the Company in order to optimize the capitalstructure, may adjust the dividend paid to shareholders,return capital to shareholders or issue new shares.
The Group's exposure to credit risk arises from its operating activities and more specifically on the collection process of itsfranchise‐like model of operation. The above mentioned processleavesthe Group exposed to the risk of financial loss if one of its counterparties fails to meet its financial obligations. The carrying value of financial assets at each reporting date is the maximum credit risk to which the Group is exposed.
In order to mitigate the aforementioned risk, OPAP established and implements a credit risk management policy. The main characteristics of the policy are:
The Group and the Company have the following types of financial assets that are subject to the expected credit loss model:
While cash and cash equivalents are also subject to impairment under IFRS 9, the identified impairment loss was not significant due to the fact that the cash and cash equivalents of the Group and the Company are held at reputable European financial institutions.
The Group applies the IFRS 9 simplified approach to measure expected credit losses using a lifetime expected loss allowance for all trade receivables. It is mentioned that the expected credit losses are based on the difference between the cash inflows, which are receivable, and the actual cash inflows that the Group expects to receive. All cash inflows in delay are discounted.
The remaining financial assets are considered to have low credit risk, therefore the Group applies the IFRS 9 general approach and the loss allowance was limited to 12 months expected losses.
The Group manages liquidity risk by performing a detailed forecasting analysis of the inflows and outflows of the Group on a yearly basis.
The aforementioned exercise takes into account:
The Group liquidity position is monitored on a daily basis from the Treasury Department and if needed makes recommendations to the CFO and the Board of Directors to assure no cash shortfalls.
Reliability and transparency in relation to the operation of the games are ensured by several security measures designed to protect information technology system from breaches in security such as illegal retrieval and illegal storage of data and accidental destruction of data. Security measures cover data processing system, software applications, the integrity and availability of data and the operation of the on‐line network. Additionally, all critical business applications that relate to game operation and availability are hosted in systems that guarantee high availability, including transferring to a Backup Computer System if deemed necessary. Moreover, a critical evaluation of the systems is conducted – whether they are directly related to game availability or not – so that they can be integrated into the Disaster Recovery Plan, if deemed necessary. The applications are integrated in a security backup creation system according to their significance.
In October 2017, the Attorney General delivered to the Auditor General and following his request, an opinion by which OPAP CYPRUS LTD supposedly does not pay to the Republic of Cyprus the amounts due under the Bilateral Treaty by making a new interpretation of the Bilateral Treaty, totally different from the interpretation given by the Republic of Cyprus throughout the duration of the Bilateral Treaty since 2003. The General Accountant of the Republic of Cyprus, who is authorized under the Bilateral Treaty to audit the accounts of OPAP CYPRUS LTD, took a different position from the Attorney General supporting the way OPAP CYPRUS LTD calculated its contributions to Republic of Cyprus. No claim has been made to‐date against OPAP CYPRUS LTD and OPAP S.A. is convinced, that the interpretation of the Attorney General is unfounded.
OPAP CYPRUS LTD currently operates in Cyprus on the basis of the 2003 Bilateral Agreement ("BA") between the Republic of Cyprus and the Hellenic Republic.
The Law 52(Ι) 2018 entitled "The Law on Specific Games of Chance of 2018" was published in the Government Gazette on 13 June 2018. According to said Law, the Coordinating Committee carried out due diligence and recommended OPAP CYPRUS as the suitable operator. On 6th November 2019 the Council of Ministers validated OPAP CYPRUS as the most suitable operator to be granted with an exclusive license to operate and offer specific games of chance, in particular games falling into one of the following categories: (a) numeric lotteries, which refer to correctly predicting random numbers which are chosen by a draw using a gaming system; and (b) games based on correctly predicting a combination of the results of sports events with variable odds.
The Codes of Practice of OPAP CYPRUS have been approved by the National Betting Authority and the Minister of Finance. Following the approval of all Codes of Practice the Coordinating Committee shall prepare a draft contract (Concession Agreement) and invite OPAP Cyprus to negotiate the contract. The Concession Agreement shall be signed by both parties and submitted to the Ministerial Council for approval.
According to 52 (I) 2018 Law, the BA will be terminated upon the entry into force of the aforementioned Concession Agreement.
The outbreak of coronavirus (COVID‐19) has affected business and economic activity around the world, including Greece and Cyprus. The rapid evolution of the virus and the subsequent Governments' interventions along with the related restrictions have resulted in the suspension of the Company's and the Group's retail operations and significantly impacted the Group's financial results and operational performance in the reporting period, since OPAP's business is heavily weighted towards retail. In Greece, OPAP'sretail network remained closed since the beginning of the year up until 12.04.2021 when the OPAP stores resumed operations and street vendors also restarted the distribution of HELLENIC LOTTERIES SA products (Scratch & Passive lotteries) as of the same date. Moreover, on 24.05.2021 the VLTs operations restarted while, the horseracing facility in Markopoulo Park reopened on 17.05.2021. Finally, OPAP stores in Cyprus remain closed with local lockdowns in total for 41 days. Despite the fact that both, the revenues and the profitability of the OPAP Group were notably affected by the aforementioned retail network closure however, the overall financial performance was restrained by the significant growth of the online along with the increased contribution of STOIXIMAN business (Greek and Cypriot operations).
In this environment, OPAP proceeded with the implementation of a set of decisive actions following Government guidelines in response to coronavirus (COVID‐19) to proactively protect its employees and support its network while at the same time assuring its business continuation. The Group Management implemented work from home for employees. At the same time, business trips were limited to the absolutely necessary and trainings and meetings were carried out remotely. Moreover, the cleaning and disinfection of the facilities, as well asthe guidance of the human resourcesin the field of personal hygiene was intensified.
At this stage, despite the coronavirus (COVID‐19) impact, the Group maintains a strong financial position as the cash and cash equivalents as at 30.06.2021 amount to € 617,354 th.. At the same time, OPAP has implemented a number of measures to ensure normal operations, invoking business continuity plans where appropriate, safeguarding a quick ramp‐up of the business following the gradual ease of the restrictions.
The Group and the Company Management took limited advantage of government supporting measures, such astax reliefs or tax offset advantages and rent reduction payments as well, while the Group continues during the firstsemester 2021 its effortsimplemented in 2020 in relation to cost mitigation actions. Finally, for six‐month financial results purposes, the Group managed to secure waivers relating to loan covenants where necessary.
On top to the above mentioned actions, the Group has considered the impact of coronavirus (COVID‐19) on the measurement of non‐financial and financial assets and the related disclosures. In measurement of non‐financial assets, the Group used adjusted cash flows projections based on the revised financial budgets to calculate the Value in Use (VIU), ie the recoverable amount of the cash generating units. However, the impairment testing, both at Group and Company level, resulted in no impairment in goodwill, investments, intangible assets and Right‐of‐use. The Management reassessed as well the recoverability of cash and cash equivalents, trade and other receivables, including intergroup receivables, taking into account the future economic conditions and proceeded recording respective impairments where considered those assets are not fully recoverable.
The Management is closely monitoring the developments around the coronavirus (COVID‐19) and is constantly assessing its implications on the Group's performance. It is also taking pre‐emptive actions to ensure the health and safety of its employees and partners, as well as, the continuity of its business as mentioned above. Having satisfactory cash reserves, the Management expects that the Group will be enabled to meet the financing costs and working capital needs, and its ability to continue as going concern will not be affected.
Continuing to follow our vision to provide World Class Gaming Entertainment to our customers in online and retail, our new Fast Forward Strategy sets clear direction for ensuring OPAP's long‐term success with focus in the following six areas:
We put customer at the center of our focus in everything we do, setting customer centric mindset as key for our success. Changes are driven by the customers, so we need to affirm that we understand them well before anything else, since better customer understanding will lead to better gaming entertainment across all our channels. Fourstages consist the basisfor better customer understanding:setting asstarting point the collection of the right data of online, VLTs and retail activities, we will get closer to our customer. Thus, we will achieve to understand well who they are and what they want. The implementation of these deep customerinsightsisthe next phase and our company aspiresthat they will be reflected in our actions. The measurement of the impact on performance and customer satisfaction comes as the fourth stage. This experience will be reflected through delivering the following attributes which are tightly connected with our Brand:
OPAP and the individual game brands are our strong asset, so we aim to keep them relevant to our customers and expand them into the digital world. Our goal is for OPAP to offer world class gaming entertainment across all touchpointsthat the customer interacts: TV, online, shop, communication, public relations,social networks, even friends; the key attributes we intend to keep developing are the following:
We aim to remain relevant to our existing customer base, as well as expand our brand identity and perception in new segments through digital communication channels. We continue focusing on existing customers, employees and partners, as well as further embrace younger audiences and women as an opportunity for growth. In this context, we envision our brand tone of voice to be conversational, a great story‐teller, contextual, personalized and fun!
We aim to redesign our digital touchpoints with new digital brand identity and aligned user experience across all our digital assets. The upgrade of customers' experience in the digital interactions with OPAP is vital for us. Key areas of our focus on the new digital experiences consist of new websites and apps, new online business proposition and new digital experiences in our retail network.
Our ambition isto boost our online world presence, become top tier online player and turn our online into the second strong pillar of our business. With the hard work of our high performing team our online priorities and key levers of growth are represented through the following areas:
Customer insights and CRM: Efficient CRM that will allow us to deliver the right offer at the right time leveraging Artificial Intelligence, while keeping relentless focus on activity and development of players.
18 High‐performing frontends: Superior high‐performance packaging with key focus on mobile.
Key enablers for all the above will be i) technology, choosing the right vendors and technology setup (inhouse/outsource) for agile delivery and operational excellence, and ii) regulatory, cooperating with relevant authorities on regulatory matters, ensuring equal market conditions and enabling implementation of our "tomorrow".
Our aim is to maintain our strong position in retail and explore opportunities for growth through further upgrade of gaming entertainment experiences and enhancement of digital customer journeys. We will further evolve the local entertainment destination experience and we will add a new digital layer on top of this. Our focus will be on the following areas:
Technology, both current and new, is an important enabler to deliver better customer solutions and improve our productivity and efficiency. Our key initiatives will be in the following five areas:
Operational Excellence: best customer and agent experience via constant improvements of our operations and processes, Hardware & Software management and problems resolution capabilities pave the way towards our operational excellence target.
19 Elastic & scalable infrastructure: upgrades of central and store infrastructure & equipment to software defined network technologies for fast delivery of new rich player experiences, ready to take full advantage of 5G will contribute to achieve that goal.
Our people play a more than significant role in order to achieve our goals. Transformation of mindset, culture and way of work is necessary and will contribute to our success which depends on our flexibility, speed and adoption of change. OPAP fast forwardsinto a modern company with young and dynamic spirit. We aspire to gain agility in our business by focusing on the following four steps:
OPAP, along with the six key areas of its strategy, continues to focus on Corporate Responsibility, which consists integral part of its DNA, positioning the company as the CSR leader in Greece. Specifically, we adopt and develop the higheststandards of integrity and responsibility, deeply embedding the responsible gaming approach in all our commercial activities. In specific, we will keep on building community trust investing in our four pillars: Health, Sports, Employment, and Sensitive Groups, while introducing also Education as a new fifth pillar.
The amounts of expenses and income undertaken in the first semester 2021, and the balances of payables and receivables as at 30.06.2021 for the Group and the Company, arising from transactions between related parties are presented in the following tables:
| Company | Expenses | Income | Assets' Purchase |
Payables | Receivables |
|---|---|---|---|---|---|
| (Amounts in thousands euro) | |||||
| OPAP SPORTS LTD | ‐ | 1,000 | ‐ | ‐ | 1,000 |
| OPAP CYPRUS LTD | 371 | 12,448 | ‐ | 20,572 | 12,536 |
| HELLENIC LOTTERIES S.A. | ‐ | 1,692 | ‐ | 12 | 3,358 |
| HORSE RACES SINGLE MEMBER S.A. | ‐ | 410 | ‐ | 11 | 8,045 |
| TORA DIRECT SINGLE MEMBER S.A. | 151 | 234 | ‐ | 208 | 10,944 |
| TORA WALLET SINGLE MEMBER S.A. | 365 | 139 | ‐ | 559 | 979 |
| NEUROSOFT S.A. | 3,114 | ‐ | 3 | 1,221 | ‐ |
| Total | 4,001 | 15,923 | 3 | 22,581 | 36,863 |
| Expenses | Assets' Purchase |
Payables | Receivables | ||
|---|---|---|---|---|---|
| (Amounts in thousands euro) | |||||
| Other related parties | 2,227 | 567 | 87,443 | 144 |
| (Amounts in thousands euro) | GROUP | COMPANY | |
|---|---|---|---|
| Category | Description | 01.01‐30.06.2021 | 01.01‐30.06.2021 |
| Salaries | 1,933 | 1,933 | |
| MANAGEMENT PERSONNEL |
Other compensations | 10 | 10 |
| Cost of social insurance | 100 | 100 | |
| Total | 2,042 | 2,042 |
| GROUP | COMPANY | ||
|---|---|---|---|
| Category | Description | 01.01‐30.06.2021 | 01.01‐30.06.2021 |
| BOARD OF | Salaries | 426 | 185 |
| DIRECTORS | Cost of social insurance | 46 | 32 |
| Total | 472 | 217 |
| 21 | |
|---|---|
| (Amounts in thousands euro) | GROUP | COMPANY |
|---|---|---|
| Liabilities from Bod' compensation & remuneration | 30.06.2021 | 30.06.2021 |
| BoD and key management personnel | 225 | 224 |
| Total | 225 | 224 |
For the preparation of the condensed consolidated financial statements of the Group, the transactions and balances with the subsidiaries have been eliminated.
In view of the provisions of L. 4706/2020 on corporate governance, coming into force as of 17.07.2021, the Company proceeded in all necessary actions in order to comply with the relevant requirements.
After the approval of the Codes of Practice of OPAP CYPRUS by the National Betting Authority and the Minister of Finance, the Coordinating Committee, by virtue of itsletter dated on 20.07.2021,sent to OPAP CYPRUS LTD, according to the provision of art. 5(c) Law 52(I), a draft contract (Concession Agreement) to be concluded by the parties. The negotiations of the draft Concession Agreement between OPAP CYPRUS LTD and the Coordinating Committee shall commence on 16.09.2021.
By virtue of the decision of the 21th Annual Ordinary Shareholders General Meeting, held on 17.06.2021, the share capital of the Company would be increased for an amount up to € 7,800 th. upon issuance of up to 26,000,000 new ordinary, registered, voting shares, for the implementation of the dividend reinvestment program.
The share capital increase was partially subscribed resulting at a final share capital increase of € 2,919 th. through the issuance of 9,729,566 new ordinary, registered, voting shares of nominal value of € 0.30 each. As a result thereof, the share capital of the Company amounted to € 105,347 th., divided to 351,155,953 shares, of nominal value of € 0.30 each. As the issue price of the Company's new shares amounted to € 11.14, the total above par value of the new shares, amounting to € 105,468 th., was transferred to the account "Share premium".
On 03.08.2021, 9,729,566 new ordinary, registered, voting shares were admitted to trading on Athens Stock Exchange as a result of the reinvestment of the dividend for the financial year 2020 by 2,788 beneficiaries at issue price of € 11.14.
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800
The Go‐Live of the online licenses of OPAP S.A. and STOIXIMAN LTD took place on 10.08.2021 and 05.08.2021, respectively.
The Company's Board of Directors decided during its meeting on 07.09.2021 to distribute a gross amount of € 34,933 th. or € 0.10 per share as interim dividend for the fiscal year 2021.
The Group presents certain Alternative Performance Indicators besidesfrom IFRSs arising from itsfinancial statements, particularly the indicator "Net Debt/Earnings before interest, taxes, depreciation and amortization (EBITDA)". The indicators which are defined and calculated in detail below, are widely used in order to present the Group's profits in relation to its debt and how viable servicing its debt is. The Alternative Performance Indicators should not be considered as a substitute for other figures and have been calculated in accordance with the provisions of IFRS.
| (Amounts in thousands of euro) | 01.01‐ 30.06.2021 |
01.01‐ 30.06.2020 |
Δ % |
|---|---|---|---|
| Profit before interest, tax, depreciation and amortization (EBITDA) / Revenue (GGR) |
35.9% | 20.2% | 78.0% |
| Profit attributable to owners of the Company / Revenue (GGR) |
14.4% | 4.0% | 258.0% |
| Profit before interest, tax, depreciation and amortization (EBITDA) / Net gaming revenue (NGR) |
54.8% | 30.6% | 79.2% |
| Profit attributable to owners of the Company / Net gaming revenue (NGR) |
22.0% | 6.1% | 260.4% |
| Net debt | 477,288 | 587,107 | (18.7%) |
| Total debt / Total equity | 169.5% | 145.5% | 16.4% |
| Net debt / Profit before interest, tax, depreciation and amortization (EBITDA) last twelve months |
1.3 | 1.9 | (29.7%) |
Calculated as the ratio of earnings before tax, depreciation, amortization and impairment (EBITDA) over GGR in the year.
Calculated as the ratio of net profit for the year over GGR for the year.
Calculated as the ratio of Earnings before tax, depreciation and amortization (EBITDA) over NGR in the period.
Calculated as the ratio of net profit for the year over NGR for the period.
Calculated as the sum of short‐term and long‐term borrowings plus short‐term and long‐term lease liabilities at the end of the year/period minus the "Cash and cash equivalents", "Long‐term investments" and "Short‐term investment" balances at the end of the year.
Calculated as the ratio of the sum of short‐term and long‐term borrowings plus short‐term and long‐term lease liabilities at the end of the year over equity at the end of the year.
Calculated as the ratio of Net Debt (see above) over earnings before interest, tax, amortization and impairment in the last twelve months.
Athens, 07 September 2021
Chairman Board Member and Chief Executive Officer
Kamil Ziegler Jan Karas
The attached Interim Condensed Financial Information as at 30.06.2021 were approved by the Board of Directors of OPAP S.A. on 7 September 2021 and are posted at the Company's website www.opap.gr as well as in the website of Athens Stock Exchange and they will remain at the disposal of the investors for at least five years from the date of their announcement.
The Interim Condensed Separate and Consolidated Financial Information of OPAP S.A. for the periods ended on 30.06.2021, 30.06.2020 and the year ended on 31.12.2020 have been prepared in accordance with International Financial Reporting Standards (IFRS) and have been reviewed by the auditing firm PricewaterhouseCoopers S.A..
[Translation from the original text in Greek]
To the Board of directors of Greek Organization of Football Prognostics S. A.
We have reviewed the accompanying condensed company and consolidated statement of financial position of Greek Organization of Football Prognostics S.A. Entity (the "Company"), as of 30 June 2021 and the related condensed company and consolidated statements of income statement, comprehensive income, changes in equity and cash flow statements for the six-month period then ended, and the selected explanatory notes that comprise the interim condensed financial information and which form an integral part of the six-month financial report as required by L.3556/2007.
Management is responsible for the preparation and presentation of this condensed interim financial information in accordance with International Financial Reporting Standards as they have been adopted by the European Union and applied to interim financial reporting (International Accounting Standard "IAS 34"). Our responsibility is to express a conclusion on this interim condensed financial information based on our review.
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing, as they have been transposed into Greek Law and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial information is not prepared, in all material respects, in accordance with IAS 34.
PricewaterhouseCoopers S.A., T: +30 210 6874400, www.pwc.gr
Our review has not revealed any material inconsistency or misstatement in the statements of the members of the Board of Directors and the information of the six-month Board of Directors Report, as defined in articles 5 and 5a of Law 3556/2007, in relation to the accompanying condensed interim financial information.
Athens, 8 September 2021
The Certified Auditor Accountant
PricewaterhouseCoopers S.A. Certified Auditors – Accountants 268, Kifissias Avenue 152 32 Halandri SOEL Reg. 113
Konstantinos Michalatos SOEL Reg. No 17701
(Amounts in thousands of euro)
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| Notes | 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| ASSETS | |||||
| Non ‐ current assets | |||||
| Intangible assets | 5 | 939,125 | 980,228 | 837,671 | 874,308 |
| Property, plant and equipment | 6 | 76,686 | 85,623 | 74,140 | 82,813 |
| Right‐of‐use assets | 7 | 37,965 | 41,864 | 23,089 | 26,155 |
| Investment properties | 1,558 | 1,606 | 1,558 | 1,606 | |
| Goodwill | 483,836 | 483,846 | ‐ | ‐ | |
| Investments in subsidiaries | ‐ | ‐ | 425,412 | 425,412 | |
| Investments in associates | 8 | 8,893 | 8,079 | ‐ | ‐ |
| Trade receivables | 12 | 3,970 | 7,249 | 3,970 | 7,249 |
| Other non ‐ current assets | 9 | 83,607 | 47,117 | 93,337 | 55,334 |
| Deferred tax assets | 10 | 35,423 | 35,467 | ‐ | ‐ |
| Total non ‐ current assets | 1,671,063 | 1,691,078 | 1,459,176 | 1,472,878 | |
| Current assets | |||||
| Inventories | 11 | 12,041 | 6,169 | 2,721 | 4,011 |
| Trade receivables | 12 | 103,791 | 68,480 | 55,034 | 26,846 |
| Current income tax assets | 10 | 3,418 | 2,359 | ‐ | ‐ |
| Other current assets | 40,178 | 40,618 | 41,287 | 38,370 | |
| Cash and cash equivalents | 13 | 617,354 | 506,873 | 373,348 | 279,491 |
| Short – term investments | 13 | 3,629 | 4,629 | ‐ | ‐ |
| Total current assets | 780,411 | 629,128 | 472,391 | 348,718 | |
| Total Assets | 2,451,475 | 2,320,206 | 1,931,567 | 1,821,596 |
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| Notes | 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| EQUITY & LIABILITIES | |||||
| Equity | |||||
| Share capital | 102,428 | 102,428 | 102,428 | 102,428 | |
| Share premium | 218,826 | 218,826 | 218,826 | 218,826 | |
| Reserves | 33,816 | 33,329 | 32,562 | 32,075 | |
| Treasury shares | (14,497) | (14,497) | (14,497) | (14,497) | |
| Retained earnings | 294,867 | 399,520 | 185,416 | 299,436 | |
| Equity attributable to owners of the Company |
635,439 | 739,606 | 524,734 | 638,267 | |
| Non‐controlling interests | 14 | 12,628 | 15,281 | ‐ | ‐ |
| Total equity | 648,067 | 754,886 | 524,734 | 638,267 | |
| Non‐current liabilities | |||||
| Borrowings | 15 | 1,009,622 | 1,007,830 | 959,278 | 957,440 |
| Lease liabilities | 7 | 46,295 | 50,112 | 19,074 | 22,011 |
| Deferred tax liability | 10 | 40,826 | 26,642 | 39,309 | 24,833 |
| Employee benefit plans | 5,340 | 4,685 | 4,777 | 4,194 | |
| Provisions | 9,450 | 10,214 | 9,447 | 10,212 | |
| Other non‐current liabilities | 16 | 5,960 | 99,776 | 2,124 | 2,748 |
| Total non‐current liabilities | 1,117,491 | 1,199,259 | 1,034,009 | 1,021,438 | |
| Current liabilities | |||||
| Borrowings | 15 | 34,786 | 33,036 | 52,968 | 52,692 |
| Lease liabilities | 7 | 7,568 | 7,631 | 5,223 | 5,068 |
| Trade payables | 17 | 132,006 | 149,444 | 42,116 | 52,400 |
| Current income tax liabilities | 10 | 45,031 | 27,755 | 16,141 | 13,119 |
| Other current liabilities | 18 | 466,524 | 148,194 | 256,376 | 38,611 |
| Total current liabilities | 685,916 | 366,061 | 372,824 | 161,890 | |
| Total liabilities | 1,803,408 | 1,565,320 | 1,406,833 | 1,183,328 | |
| Total Equity & Liabilities | 2,451,475 | 2,320,206 | 1,931,567 | 1,821,596 |
(Amounts in thousands of euro except earnings per share)
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| GROUP | Notes | 01.01‐ 30.06.2021 |
01.04‐ 30.06.2021 |
01.01‐ 30.06.2020 |
01.04‐ 30.06.2020 |
|
| Revenue (GGR) | 570,082 | 395,893 | 507,927 | 179,615 | ||
| GGR contribution and other levies and duties | 20 | (196,406) | (127,848) | (172,691) | (61,748) | |
| Net gaming revenue (NGR) | 373,676 | 268,046 | 335,236 | 117,867 | ||
| Agents' commissions | 21 | (85,468) | (71,258) | (119,513) | (40,517) | |
| Other NGR related commissions | 22 | (39,387) | (23,548) | (24,606) | (8,583) | |
| Other operating income | 23 | 66,266 | 32,647 | 66,960 | 30,959 | |
| Other operating income related to the extension of the concession of the exclusive right |
24 | 100,804 | 55,315 | ‐ | ‐ | |
| Other operating cost | 25 | (36,715) | (19,346) | (37,070) | (18,217) | |
| Share of profit of associates | 814 | 731 | 6,359 | 1,790 | ||
| 379,990 | 242,587 | 227,366 | 83,299 | |||
| Operating expenses | (175,149) | (99,090) | (124,819) | (67,136) | ||
| Payroll expenses | 26 | (38,852) | (20,252) | (39,917) | (19,952) | |
| Marketing expenses | 27 | (44,359) | (28,323) | (23,404) | (10,798) | |
| Other operating expenses | 28 | (91,710) | (49,733) | (53,936) | (28,961) | |
| Net impairment losses on financial assets | (228) | (782) | (7,562) | (7,426) | ||
| Profit before interest, tax, depreciation and amortization (EBITDA) |
204,841 | 143,497 | 102,547 | 16,162 | ||
| Depreciation, amortization and impairment | (66,491) | (33,219) | (65,658) | (38,558) | ||
| Results from operating activities | 138,350 | 110,278 | 36,889 | (22,396) | ||
| Finance income | 29 | 963 | 586 | 9,521 | 8,584 | |
| Finance costs | 29 | (22,468) | (11,098) | (21,595) | (10,178) | |
| Profit/(loss) before tax | 116,846 | 99,766 | 24,815 | (23,990) | ||
| Income tax expense | 30 | (33,299) | (27,330) | (6,754) | 8,226 | |
| Profit for the period | 83,546 | 72,437 | 18,060 | (15,764) | ||
| Profit attributable to: | ||||||
| Owners of the Company | 82,133 | 71,856 | 20,443 | (15,103) | ||
| Non‐controlling interests | 1,414 | 581 | (2,383) | (660) | ||
| Profit after tax | 83,546 | 72,437 | 18,060 | (15,764) | ||
| Basic and diluted earnings per share in € | 0.2419 | 0.2116 | 0.0619 | (0.0454) |
The attached notes on pages 37 to 82 form an integral part of the Interim Condensed Financial Information.
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800
(Amounts in thousands of euro except earnings per share)
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| COMPANY | Notes | 01.01‐ 30.06.2021 |
01.04‐ 30.06.2021 |
01.01‐ 30.06.2020 |
01.04‐ 30.06.2020 |
|
| Revenue (GGR) | 303,396 | 254,670 | 439,728 | 153,903 | ||
| GGR contribution and other levies and duties | 20 | (92,518) | (76,979) | (149,334) | (52,647) | |
| Net gaming revenue (NGR) | 210,878 | 177,691 | 290,394 | 101,256 | ||
| Agents' commission | 21 | (65,929) | (57,666) | (100,460) | (33,098) | |
| Other NGR related commission | 22 | (20,149) | (14,153) | (21,196) | (7,345) | |
| Other operating income | 23 | 28,828 | 12,232 | 27,165 | 11,215 | |
| Other operating income related to the extension of the concession of the exclusive right |
24 | 100,804 | 55,315 | ‐ | ‐ | |
| Other operating cost | 25 | (1,053) | (654) | (49) | (5) | |
| 253,379 | 172,766 | 195,854 | 72,024 | |||
| Operating expenses | (92,104) | (52,909) | (102,666) | (56,782) | ||
| Payroll expenses | 26 | (30,021) | (14,747) | (32,821) | (16,564) | |
| Marketing expenses | 27 | (23,603) | (14,250) | (18,589) | (8,774) | |
| Other operating expenses | 28 | (35,504) | (20,411) | (47,830) | (28,019) | |
| Net impairment losses on financial assets | (2,976) | (3,501) | (3,425) | (3,425) | ||
| Profit before interest, tax, depreciation and amortization (EBITDA) |
161,274 | 119,857 | 93,188 | 15,242 | ||
| Depreciation and amortization | (55,314) | (27,530) | (42,782) | (21,630) | ||
| Results from operating activities | 105,960 | 92,327 | 50,406 | (6,389) | ||
| Finance income | 29 | 1,084 | 586 | 8,971 | 8,528 | |
| Finance costs | 29 | (19,066) | (8,503) | (19,649) | (9,342) | |
| Dividend income | 4,000 | 4,000 | 5,500 | 5,500 | ||
| Profit before tax | 91,978 | 88,410 | 45,229 | (1,703) | ||
| Income tax expense | 30 | (19,212) | (20,501) | (11,782) | ‐ | |
| Profit for the period | 72,766 | 67,909 | 33,447 | (1,703) | ||
| Profit attributable to: | ||||||
| Owners of the Company | 72,766 | 67,909 | 33,447 | (1,703) | ||
| Profit after tax | 72,766 | 67,909 | 33,447 | (1,703) | ||
| Basic and diluted earnings per share in € | 0.2143 | 0.2000 | 0.1013 | (0.0051) |
For the six‐month period ended 30 June 2021
(Amounts in thousands of euro)
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| GROUP | Notes | 01.01‐ 30.06.2021 |
01.04‐ 30.06.2021 |
01.01‐ 30.06.2020 |
01.04‐ 30.06.2020 |
|
| Profit for the period | 83,546 | 72,437 | 18,060 | (15,764) | ||
| Other comprehensive income ‐ items that may be reclassified to profit or loss | ||||||
| Gain/(loss) from valuation of hedging derivatives | 624 | 333 | (405) | (165) | ||
| Attributable income tax | 30 | (137) | (68) | 97 | 39 | |
| Exchange differences on translation of foreign operations |
(1) | (2) | (2) | |||
| Total items that may be reclassified to profit or loss |
487 | 265 | (310) | (127) | ||
| Other comprehensive income net of tax | 487 | 265 | (310) | (127) | ||
| Total comprehensive income net of tax | 84,033 | 72,702 | 17,750 | (15,891) | ||
| Total comprehensive income attributable to: | ||||||
| Owners of the Company | 82,620 | 72,121 | 20,134 | (15,230) | ||
| Non‐controlling interests | 1,414 | 581 | (2,383) | (661) | ||
| Total comprehensive income net of tax | 84,033 | 72,702 | 17,750 | (15,891) |
For the six‐month period ended 30 June 2021
(Amounts in thousands of euro)
| 2021 | 2020 | |||||||
|---|---|---|---|---|---|---|---|---|
| COMPANY | Notes | 01.01‐ 30.06.2021 |
01.04‐ 30.06.2021 |
01.01‐ 30.06.2020 |
01.04‐ 30.06.2020 |
|||
| Profit for the period | 72,766 | 67,909 | 33,447 | (1,703) | ||||
| Other comprehensive income ‐ items that are or may be reclassified subsequently to profit or loss | ||||||||
| Gain/(loss) from valuation of hedging derivatives | 624 | 333 | (405) | (165) | ||||
| Attributable income tax | 30 | (137) | (68) | 97 | 39 | |||
| Total items that may be reclassified to profit or loss |
487 | 266 | (308) | (125) | ||||
| Other comprehensive income net of tax | 487 | 266 | (308) | (125) | ||||
| Total comprehensive income net of tax | 73,253 | 68,175 | 33,139 | (1,828) | ||||
| Total comprehensive income attributable to: | ||||||||
| Owners of the Company | 73,253 | 68,175 | 33,139 | (1,828) | ||||
| Total comprehensive income net of tax | 73,253 | 68,175 | 33,139 | (1,828) |
(Amounts in thousands of euro)
| At | i bu b le tr ta to o |
f t he wn ers o |
Co mp an y |
|||||
|---|---|---|---|---|---|---|---|---|
| G O U R P |
ha S re ita l ca p |
ha S re ium p rem |
Re se rve s |
Tre ury s as ha res |
ine d Re ta ing ea rn s |
l To ta |
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l e ity To ta q u |
| lan Ba 1 Jan 2 0 2 0 t ce a ua ry |
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|
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| ion it h f t he Tra Co t ns ac w s o wn ers o mp an y |
||||||||
| S ha ita l inc re c ap rea se ex p en ses |
‐ | ‐ | ‐ | ‐ | ( ) 8 |
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‐ | ‐ | ‐ | ‐ | ( ) 1 8 6, 7 7 8 |
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| l ion it h f t he Co To ta tr ct an sa w s o wn ers o mp an y |
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1 2, 6 2 8 |
6 4 8, 0 6 7 |
The attachednotes on pages 37 to 82 form an integral part of the Interim Condensed Financial Information.
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800
| COMPANY | Share capital |
Share premium |
Reserves | Treasury shares |
Retained earnings |
Total equity |
|---|---|---|---|---|---|---|
| Balance at 1 January 2020 | 96,487 | 24,294 | 30,266 | (14,497) | 620,030 | 756,579 |
| Profit for the period 01.01‐30.06.2020 | ‐ | ‐ | ‐ | ‐ | 33,447 | 33,447 |
| Other comprehensive loss for the period 01.01‐30.06.2020 |
‐ | ‐ | (308) | ‐ | ‐ | (308) |
| Total comprehensive income for the period 01.01‐30.06.2020 |
‐ | ‐ | (308) | ‐ | 33,447 | 33,139 |
| Share capital increase | 3,925 | 143,404 | ‐ | ‐ | ‐ | 147,330 |
| Share capital increase expenses | ‐ | ‐ | ‐ | ‐ | (48) | (48) |
| Dividends provided for or paid | ‐ | ‐ | ‐ | ‐ | (419,657) | (419,657) |
| Balance at 30 June 2020 | 100,412 | 167,698 | 29,958 | (14,497) | 233,771 | 517,341 |
| Balance at 1 January 2021 | 102,428 | 218,826 | 32,075 | (14,497) | 299,436 | 638,267 |
| Profit for the period 01.01‐30.06.2021 | ‐ | ‐ | ‐ | ‐ | 72,766 | 72,766 |
| Other comprehensive income for the period 01.01‐30.06.2021 |
‐ | ‐ | 487 | ‐ | ‐ | 487 |
| Total comprehensive income for the period 01.01‐30.06.2021 |
‐ | ‐ | 487 | ‐ | 72,766 | 73,253 |
| Share capital increase expenses | ‐ | ‐ | ‐ | ‐ | (8) | (8) |
| Dividends provided for or paid (Note 19) | ‐ | ‐ | ‐ | ‐ | (186,778) | (186,778) |
| Balance at 30 June 2021 | 102,428 | 218,826 | 32,562 | (14,497) | 185,416 | 524,734 |
(Amounts in thousands of euro)
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| Notes | 01.01‐ 30.06.2021 |
01.01‐ 30.06.2020 |
01.01‐ 30.06.2021 |
01.01‐ 30.06.2020 |
|
| OPERATING ACTIVITIES | |||||
| Profit before tax | 116,846 | 24,815 | 91,978 | 45,229 | |
| Adjustments for: | |||||
| Depreciation & amortization | 66,293 | 54,198 | 55,314 | 42,322 | |
| Net finance costs | 21,486 | 12,018 | 17,978 | 10,674 | |
| Employee benefit plans | 833 | 34 | 762 | (34) | |
| Provisions for doubtful trade receivables | 12 | (1,382) | 1,108 | (1,136) | 707 |
| Write‐off of trade receivables | 1,612 | 233 | 1,612 | 233 | |
| Other provisions | 28 | (686) | 428 | (686) | 428 |
| Provision for obsolete inventories | 11 | 195 | ‐ | 195 | ‐ |
| Impairment losses on PPE, intangible assets, Right‐ of‐use assets & goodwill |
198 | 11,460 | ‐ | 460 | |
| Exchange differences | 19 | 57 | 4 | 4 | |
| Dividend income | ‐ | ‐ | (4,000) | (5,500) | |
| Impairment of investment in subsidiaries | 28 | ‐ | ‐ | ‐ | 3,800 |
| Impairment of other current & non‐current assets | ‐ | 6,185 | 2,500 | 2,485 | |
| Share of profit from associates | 8 | (814) | (6,359) | ‐ | ‐ |
| (Profit)/loss from investing activities | (1) | 1 | (3) | (2) | |
| Rent concessions | 7 | (3,421) | (1,136) | (2,494) | (540) |
| Total | 201,175 | 103,041 | 162,024 | 100,266 | |
| Changes in Working capital | |||||
| (Increase) / decrease in inventories | (4,596) | (6,065) | 2,566 | (2,390) | |
| (Increase) / decrease in receivables | (54,615) | 49,361 | (53,885) | 16,766 | |
| Increase / (decrease) in payables (except banks) | 16,280 | (57,449) | 18,016 | (32,986) | |
| Total | 158,244 | 88,887 | 128,722 | 81,655 | |
| Interest paid | (14,918) | (18,021) | (13,456) | (16,398) | |
| Income taxes paid | (2,921) | (645) | (1,773) | ‐ | |
| Net cash inflow from operating activities | 140,405 | 70,221 | 113,493 | 65,257 |
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| Notes | 01.01‐ 30.06.2021 |
01.01‐ 30.06.2020 |
01.01‐ 30.06.2021 |
01.01‐ 30.06.2020 |
|
| INVESTING ACTIVITIES | |||||
| Proceeds from sale of tangible & intangible assets | 3 | 4 | 3 | 4 | |
| Payment for acquisition of subsidiary | (19,007) | ‐ | ‐ | ‐ | |
| Repayment of loans by third parties | 863 | 755 | 573 | 455 | |
| Repayment of loans by subsidiaries | ‐ | ‐ | 4,000 | 5,000 | |
| Share capital increase of subsidiaries | ‐ | ‐ | ‐ | (70,000) | |
| Loans granted to third parties | (276) | (636) | (276) | (636) | |
| Loans granted to Group companies | ‐ | ‐ | (16,000) | (14,500) | |
| Purchase of intangible assets | 5 | (11,864) | (2,680) | (6,549) | (2,136) |
| Purchase of property, plant and equipment | 6 | (779) | (6,146) | (554) | (5,827) |
| Dividends received | ‐ | 6,799 | ‐ | 7,500 | |
| Interest received | 351 | 1,510 | 341 | 716 | |
| Net change in short‐term & long‐term investments | 1,000 | ‐ | ‐ | ‐ | |
| Net cash outflow from investing activities | (29,709) | (393) | (18,462) | (79,423) | |
| FINANCING ACTIVITIES | |||||
| Proceeds from borrowings | 15 | 2,014 | 301,565 | ‐ | 300,065 |
| Repayment of borrowings | 15 | (228) | (203,051) | (2) | (200,000) |
| Transaction costs related to borrowings | ‐ | (800) | ‐ | (800) | |
| Share capital increase expenses | (8) | (48) | (8) | (48) | |
| Payment of lease liabilities | 7 | (1,676) | (3,642) | (846) | (2,629) |
| Dividends paid to Company's shareholders | (318) | (169,568) | (318) | (169,568) | |
| Receipt of repayable state cash advance | ‐ | 151 | ‐ | ‐ | |
| Net cash outflow from financing activities | (216) | (75,394) | (1,174) | (72,980) | |
| Net increase/(decrease) in cash and cash equivalents |
110,481 | (5,565) | 93,857 | (87,146) | |
| Cash and cash equivalents at the beginning of the period |
506,873 | 633,815 | 279,491 | 450,297 | |
| Effects of exchange rate changes on cash and cash equivalents |
1 | (2) | ‐ | ‐ | |
| Cash and cash equivalents at the end of the period |
617,354 | 628,248 | 373,348 | 363,151 |
OPAP S.A. was established as a private legal entity in 1958. It was reorganized as a société anonyme in 1999 domiciled in Greece and its accounting as such began in 2000. OPAP's registered offices and principal place of business, is 112 Athinon Avenue, 104 42 Athens, Greece. OPAP S.A.'sshares are listed in the Athens Stock Exchange.
OPAP Group (the "Group"), beyond the parent company, includes the companies which OPAP S.A., either directly or indirectly controls (Note 3).
The Group's Financial Statements are consolidated by SAZKA Group a.s..
The Interim Condensed Financial Information for the period that ended on 30.06.2021 (including the comparatives for the period that ended on 30.06.2020 and for the year that ended on 31.12.2020) were approved by the Board of Directors on 07.09.2021.
The Interim Condensed Separate and Consolidated Financial Information have been prepared in accordance with IAS 34 'Interim Financial Reporting'.
The Interim Condensed Separate and Consolidated Financial Information do not include all the information and disclosures required in the annual Financial Statements and should be read in conjunction with the annual audited Financial Statements for the year ended 31.12.2020, which are available in the Company's website www.opap.gr.
The Interim Condensed Separate and Consolidated Financial Information have been prepared under the historical cost basis, unless otherwise stated in the accounting policies. Additionally, the Financial Statements have been prepared under the going concern basis of accounting. The use of this basis of accounting takes into consideration the Group's current and forecasted financing position.
The preparation of the Interim Condensed Separate and Consolidated Financial Information according with the IFRS requires the use of certain critical accounting estimates as well as the Management judgment in the process of applying the Group's accounting policies.
The accounting policies used are the same as those applied to the annual audited Financial Statements for the year ended 31.12.2020, considering the changes to Standards and Interpretations applicable from 01.01.2021.
At the beginning of 2020, there was a worldwide outbreak of coronavirus (COVID‐19) which impacted the global economy. The extent to which the coronavirus (COVID‐19) epidemic will continue to affect the Company's and the Group's operations will largely depend on future developments which are highly uncertain and cannot be predicted at this point of time. Management reviewed a range of scenarios and forecasts for the foreseeable future linked to future actions and activities. The Group's and the Company's Management have prepared a liquidity forecast based on cash flow projections for the foreseeable future, which include assumptions regarding cash generated from operations, debt repayments, scheduled investments and available credit facilities. Management considers that cash position will be sufficient to cover the financial and operating commitments for the next 12 months. Accordingly, it is appropriate that the Group continues to adopt the going concern basis for the preparation of the condensed consolidated and separate financial statements.
The Group's and the Company's operations are not significantly affected by seasonality or cyclical factors. All amounts presented in the Interim Condensed Separate and Consolidated Financial Information are in thousands of euro, unless otherwise stated. They also have been rounded in thousands of euro and any differences are attributed to roundings.
The preparation of the Financial Statementsrequires management to make estimations and judgmentsthat affect the reported amounts of assets and liabilities, as well as the disclosure of contingent assets and liabilities at the date of the Financial Statements and the reported amounts of revenue and expenses during the reporting period. Actual events could differ from those estimates.
Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future eventsthat are believed to be reasonable under the circumstances. The effect of a change in an accounting estimate or judgement shall be recognized prospectively. Certain amounts included in or affecting the Financial Statements and related disclosure must be estimated, requiring management to make assumptions with respect to values or conditions which cannot be known with certainty at the time the Financial Statements are prepared. A ''critical accounting estimate'' is one which is both important to the portrayal of the Group's financial condition and results and requires management's most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. The Group evaluates such estimates and assumptions on ongoing basis, based upon historical results and experience, consultation with experts, trends and other methods considered reasonable in the particular circumstances, as well as forecasts as to how these might change in the future.
Certain new standards, amendmentsto standards and interpretations have been issued that are mandatory for periods beginning on or after 1 January 2021. The Group's evaluation of the effect of these new standards, amendments to standards and interpretations is as follows:
The amendment provides lessees (but not lessors) with relief in the form of an optional exemption from assessing whether a rent concession related to COVID‐19 is a lease modification. Lessees can elect to account for rent concessions in the same way as they would for changes which are not considered lease modifications.
The amendment above had no effect at the Financial Statements of the Group and the Company.
The amendments complement those issued in 2019 and focus on the effects on financial statements when a company replaces the old interest rate benchmark with an alternative benchmark rate as a result of the reform. More specifically, the amendments relate to how a company will account for changes in the contractual cash flows of financial instruments, how it will account for the change in its hedging relationships and the information it should disclose.
The amendment does not affect the carrying hedging relationship of the Group and the Company.
A number of new standards and amendments to standards and interpretations are effective for annual periods beginning after 1 January 2021, and have not been applied in preparing these consolidated financial statements. None of these is expected to have a significant effect on the consolidated financial statements of the Group.
There are no other IFRSs or IFRIC interpretations that are not yet effective that would be expected to have a material impact on the Group.
The amendment extends the application period of the practical expedient in relation to rent concessions by one year to cover rental concessions that reduce leases due only on or before 30 June 2022.
The Group and the Company are evaluating the impact of adoption of this amendment at the Financial Statements.
The amendment prohibits an entity from deducting from the cost of an item of PP&E any proceedsreceived from selling items produced while the entity is preparing the asset for its intended use. It also requires entities to separately disclose the amounts of proceeds and costs relating to such items produced that are not an output of the entity's ordinary activities.
The adoption of the amendment is not expected to have impact at the Group's and Company's Financial Statements.
The amendment clarifies that 'costs to fulfil a contract' comprise the incremental costs of fulfilling that contract and an allocation of other costs that relate directly to fulfilling contracts. The amendment also clarifies that, before a separate provision for an onerous contract is established, an entity recognises any impairment loss that has occurred on assets used in fulfilling the contract, rather than on assets dedicated to that contract.
The adoption of the amendment is not expected to have impact at the Group's and Company's Financial Statements.
The amendment updated the standard to refer to the 2018 Conceptual Framework for Financial Reporting, in order to determine what constitutes an asset or a liability in a business combination. In addition, an exception was added for some types of liabilities and contingent liabilities acquired in a business combination. Finally, it is clarified that the acquirer should not recognise contingent assets, as defined in IAS 37, at the acquisition date.
The adoption of the amendment is not expected to have impact at the Group's and Company's Financial Statements.
The amendment clarifies that liabilities are classified as either current or non‐current depending on the rights that exist at the end of the reporting period. Classification is unaffected by the expectations of the entity or events after the reporting date. The amendment also clarifies what IAS 1 means when it refers to the 'settlement' of a liability.
The amendment has not yet been endorsed by the EU.
The Group and the Company are evaluating the impact of adoption of this amendment at the Financial Statements.
The amendments require companies to disclose their material accounting policy information and provide guidance on how to apply the concept of materiality to accounting policy disclosures.
The amendments have not yet been endorsed by the EU.
The adoption of the amendments are not expected to have impact at the Group's and Company's Financial Statements.
The amendments clarify how companies should distinguish changes in accounting policies from changes in accounting estimates.
The amendments have not yet been endorsed by the EU.
The adoption of the amendments are not expected to have impact at the Group's and Company's Financial Statements.
The amendments require companies to recognise deferred tax on transactions that, on initial recognition, give rise to equal amounts of taxable and deductible temporary differences. This will typically apply to transactions such as leases for the lessee and decommissioning obligations.
The amendments have not yet been endorsed by the EU.
The adoption of the amendments are not expected to have impact at the Group's and Company's Financial Statements.
The amendments set out below include changes to IFRSs.
The amendment addresses which fees should be included in the 10% test for derecognition of financial liabilities. Costs or fees could be paid to either third parties or the lender. Under the amendment, costs or fees paid to third parties will not be included in the 10% test.
The amendment removed the illustration of payments from the lessor relating to leasehold improvements in Illustrative Example 13 of the standard in order to remove any potential confusion about the treatment of lease incentives.
The adoption of the above amendments is not expected to have impact at the Group's and Company's Financial Statements.
An agenda decision was published in May 2021 by the IFRIC in relation to IAS 19 "Employee Benefits" and more specifically to how the applicable principles and requirements in IFRS Standards apply to attributing benefit to periods of service.
OPAP Group expects to have fully implemented this decision by 31.12.2021. The impact on the Group's and the Company's Financial Statements from the adoption of this decision cannot be reliably evaluated at this point in time.
The OPAP Group structure as at 30.06.2021 is presented in the table below:
| Company's Name | % of investment |
Country of Incorporation |
Consolidation Method |
Principal Activities |
|---|---|---|---|---|
| OPAP S.A. | Parent company |
Greece | Numerical lottery games and sports betting |
|
| HELLENIC LOTTERIES S.A. | 83.50% | Greece | Full consolidation | Lotteries |
| OPAP CYPRUS LTD | 100% | Cyprus | Full consolidation | Numerical lottery games |
| OPAP SPORTS LTD | 100% | Cyprus | Full consolidation | Sports betting company |
| OPAP INTERNATIONAL LTD | 100% | Cyprus | Full consolidation | Holding company |
| OPAP INVESTMENT LTD | 100% | Cyprus | Full consolidation | Holding company |
| TORA DIRECT SINGLE MEMBER S.A. |
100% | Greece | Full consolidation | Services for electronic transactions ‐ Mobile Top‐ups ‐ Utility and Bill Payments |
| HORSE RACES SINGLE MEMBER S.A. |
100% | Greece | Full consolidation | Mutual Betting on Horse Races |
| TORA WALLET SINGLE MEMBER S.A. |
100% | Greece | Full consolidation | eMoney Institution |
| NEUROSOFT S.A. | 67.72% | Greece | Full consolidation | Software |
| STOIXIMAN business (Greek and Cypriot operations) |
84.49% | Malta | Full consolidation | Betting company |
| KAIZEN GAMING LIMITED | 36.75% | Malta | Equity method | Holding company |
The structure has not been changed compared to 31.12.2020.
The following information refers to business segments that the Management of the Group has decided to monitor separately for decision making purposes. The business segments are defined based on the concession agreements held by the Group entities and the other business activities of the Group.
The first 6 business segments (Lotteries, Betting (land based), Online betting, Other online games, Instant & Passives and VLTs) relate to the gaming activity of the Company and the other Group entities which operate in the gaming sector.
In "Telecommunication & eMoney services", the business activities of TORA WALLET SINGLE MEMBER S.A. and TORA DIRECT SINGLE MEMBER S.A. are included.
The segment named "Other", includes the non‐gaming activities of OPAP S.A., the business activities of NEUROSOFT S.A. and the holding companies of the Group. Specifically, the non‐gaming activities of OPAP S.A. refers to the sales of PLAY Gaming Halls to third parties, the configuration of the network for the VLTs installation and the provision of other supporting services to the network. Finally, the business activity of NEUROSOFT S.A. refers to the provision of IT services and other technological products.
Group's results for the first semester of 2021 were impacted by the full consolidation of STOIXIMAN's business (Greek and Cypriot operations), following the acquisition of control from 01.12.2020. In the comparative period, STOIXIMAN business (Greek and Cypriot operations) was part of the associate KAIZEN GAMING LIMITED. Given the substantial contribution of the STOIXIMAN business (Greek and Cypriot operations), consolidated figures are not fully comparable.
| 0 1. 0 1‐ 3 0. 0 6. 2 0 2 1 |
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|---|---|---|---|---|---|---|---|---|---|
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|
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|
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| iat ion iza ion d im irm De rt t t p rec , a mo an p a en |
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( ) 6 7 2 |
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| 0 1. 0 1‐ 3 0. 0 6. 2 0 2 0 |
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Ins & Pa ta nt ive ss s |
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|---|---|---|---|---|---|---|---|---|---|
| ( ) Re G G R ve nu e |
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( ) 8 3 3 5, 1 |
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| ( ) Ne ing N G R t g am rev en ue |
1 7 2, 3 9 2 |
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| ' c Ag iss ion ts en om m |
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( ) 2 8 5 |
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( ) 3 |
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‐ | ‐ | ( ) 2 6 0 6 4, |
| he Ot ing inc t o r p era om e |
5, 9 8 9 |
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‐ | 4 4 |
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‐ | ‐ | 3, 9 4 3 |
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‐ | ‐ | ‐ | ‐ | 6, 3 5 9 |
| 1 1 8, 9 1 7 |
5 0, 4 9 9 |
5, 2 5 7 |
3, 4 0 0 |
4, 8 9 8 |
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4, 4 5 9 |
1 1, 6 3 3 |
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|
| Op ing t era ex p en se s |
( ) 5 4, 4 7 2 |
( ) 2 7, 3 1 0 |
( ) 1, 2 6 9 |
( ) 3 7 3 |
( ) 8, 5 7 2 |
( ) 1 8, 1 9 8 |
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| d De iat ion iza ion im irm rt t t p rec , a mo an p a en |
( ) 1 2, 9 0 9 |
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( ) 1 7 8 |
( ) 5, 8 7 5 |
( ) 6 5, 6 5 8 |
| lts fro ing iv it ies Re t t su m op era ac |
3 6 5 1, 5 |
6, 6 4 4 |
3, 6 6 5 |
2, 9 3 3 |
( ) 2, 0 3 1 4 |
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( ) 6 2 7 |
( ) 3, 9 8 5 |
3 6, 8 8 9 |
Group's operations are in Greece and Cyprus. Greece is the country of incorporation of the Company and the subsidiaries HELLENIC LOTTERIES S.A., HORSE RACES SINGLE MEMBER S.A., TORA DIRECT SINGLE MEMBER S.A., TORA WALLET SINGLE MEMBER S.A. and NEUROSOFT S.A.. Finally, STOIXIMAN business (Greek and Cypriot operations) operates in Greece and Cyprus and is incorporated in Malta.
| GROUP For the period that ended on 30 June 2021 |
Greece | Cyprus | Total |
|---|---|---|---|
| Revenue (GGR) and Other operating income | 583,340 | 53,008 | 636,348 |
| Net gaming revenue (NGR) | 335,446 | 38,229 | 373,676 |
| GROUP For the period that ended on 30 June 2020 |
Greece | Cyprus | Total |
|---|---|---|---|
| Revenue (GGR) and Other operating income | 540,301 | 34,585 | 574,887 |
| Net gaming revenue (NGR) | 308,867 | 26,369 | 335,236 |
| GROUP | Greece | Cyprus | Total |
|---|---|---|---|
| Segment Assets | |||
| For the period that ended on 30 June 2021 | 2,345,685 | 105,790 | 2,451,475 |
| For the year that ended on 31 December 2020 | 2,204,271 | 115,935 | 2,320,206 |
| Segment Liabilities | |||
| For the period that ended on 30 June 2021 | 1,662,520 | 140,887 | 1,803,408 |
| For the year that ended on 31 December 2020 | 1,411,547 | 153,773 | 1,565,320 |
Intangible assets refer to software, concession rights and customer relationships and are analyzed as follows:
| GROUP | Software | Rights of games |
Development costs |
Customer relationships |
Other | Total |
|---|---|---|---|---|---|---|
| Year that ended on 31 December 2020 | ||||||
| Opening net book amount (1 January 2020) |
51,536 | 1,003,095 | 4,421 | 6,611 | 70 | 1,065,733 |
| Additions | 9,724 | ‐ | 287 | ‐ | ‐ | 10,011 |
| Acquisitions through business combinations |
1 | ‐ | ‐ | ‐ | ‐ | 1 |
| Disposals | (34) | ‐ | ‐ | ‐ | ‐ | (34) |
| Cost reclassification | 24 | ‐ | ‐ | ‐ | (24) | ‐ |
| Amortization charge | (16,869) | (67,205) | (1,130) | (554) | ‐ | (85,759) |
| Disposals amortization | 3 | ‐ | ‐ | ‐ | ‐ | 3 |
| Impairment | (3,735) | (4,855) | (1,138) | ‐ | ‐ | (9,727) |
| Net book amount (31 December 2020) |
40,650 | 931,035 | 2,440 | 6,057 | 45 | 980,228 |
| Period that ended on 30 June 2021 | ||||||
| Opening net book amount (1 January 2021) |
40,650 | 931,035 | 2,440 | 6,057 | 45 | 980,228 |
| Additions | 1,779 | 10,000 | 85 | ‐ | ‐ | 11,864 |
| Disposals | (1) | ‐ | ‐ | ‐ | ‐ | (1) |
| Cost reclassification | (27) | ‐ | 27 | ‐ | ‐ | ‐ |
| Amortization charge | (8,179) | (43,824) | (488) | (277) | ‐ | (52,768) |
| Amortization reclassification | 61 | ‐ | (61) | ‐ | ‐ | ‐ |
| Impairment | (139) | ‐ | (59) | ‐ | ‐ | (198) |
| Net book amount (30 June 2021) |
34,145 | 897,211 | 1,944 | 5,780 | 45 | 939,125 |
| GROUP | Software | Rights of games |
Development costs |
Customer relationships |
Other | Total |
|---|---|---|---|---|---|---|
| 31.12.2020 | ||||||
| Acquisition cost | 199,247 | 1,531,517 | 7,198 | 8,795 | 45 | 1,746,803 |
| Accumulated amortization | (158,596) | (600,482) | (4,758) | (2,738) | ‐ | (766,575) |
| Net book value 31.12.2020 | 40,650 | 931,035 | 2,440 | 6,057 | 45 | 980,228 |
| 30.06.2021 | ||||||
| Acquisition cost | 200,859 | 1,541,517 | 7,251 | 8,795 | 45 | 1,758,467 |
| Accumulated amortization | (166,714) | (644,306) | (5,308) | (3,015) | ‐ | (819,343) |
| Net book value 30.06.2021 | 34,145 | 897,211 | 1,944 | 5,780 | 45 | 939,125 |
| COMPANY | Software | Rights of games | Other | Total |
|---|---|---|---|---|
| Year that ended on 31 December 2020 | ||||
| Opening net book amount (1 January 2020) |
44,948 | 888,072 | 70 | 933,089 |
| Additions | 6,782 | ‐ | ‐ | 6,782 |
| Reclassification | 24 | ‐ | (24) | ‐ |
| Amortization charge | (15,526) | (50,036) | ‐ | (65,563) |
| Net book amount (31 December 2020) |
36,228 | 838,036 | 45 | 874,308 |
| Period that ended on 30 June 2021 | ||||
| Opening net book amount (1 January 2021) |
36,228 | 838,036 | 45 | 874,308 |
| Additions | 1,549 | 5,000 | ‐ | 6,549 |
| Amortization charge | (7,564) | (35,622) | ‐ | (43,186) |
| Net book amount (30 June 2021) |
30,212 | 807,414 | 45 | 837,671 |
| COMPANY | Software | Rights of games | Other | Total |
|---|---|---|---|---|
| 31.12.2020 | ||||
| Acquisition cost | 190,089 | 1,382,783 | 45 | 1,572,917 |
| Accumulated amortization | (153,861) | (544,747) | ‐ | (698,608) |
| Net book value 31.12.2020 | 36,228 | 838,036 | 45 | 874,308 |
| 30.06.2021 | ||||
| Acquisition cost | 191,638 | 1,387,783 | 45 | 1,579,465 |
| Accumulated amortization | (161,426) | (580,369) | ‐ | (741,794) |
| Net book value 30.06.2021 |
30,212 | 807,414 | 45 | 837,671 |
The Group's "Right of Games" additions within the current period include:
The intangible assets of the Group and the Company have not been pledged.
The Property, plant and equipment analysis is as follows:
| GROUP | Land | Buildings | Machinery | Vehicles | Equipment | Total |
|---|---|---|---|---|---|---|
| Year that ended on 31 December 2020 | ||||||
| Opening net book amount (1 January 2020) |
8,496 | 13,242 | 44,985 | 172 | 31,414 | 98,308 |
| Additions | ‐ | 155 | 70 | 81 | 8,562 | 8,868 |
| Disposals | ‐ | ‐ | ‐ | (17) | (357) | (374) |
| Depreciation charge | ‐ | (1,651) | (7,192) | (43) | (12,202) | (21,088) |
| Disposals depreciation | ‐ | ‐ | ‐ | 14 | 355 | 369 |
| Impairment | ‐ | ‐ | (460) | ‐ | ‐ | (460) |
| Net book amount (31 December 2020) |
8,496 | 11,746 | 37,403 | 207 | 27,772 | 85,623 |
| Period that ended on 30 June 2021 | ||||||
| Opening net book amount (1 January 2021) |
8,496 | 11,746 | 37,403 | 207 | 27,772 | 85,623 |
| Additions | ‐ | 141 | 1 | ‐ | 637 | 779 |
| Disposals | ‐ | ‐ | ‐ | ‐ | (188) | (188) |
| Depreciation charge | ‐ | (799) | (3,565) | (22) | (5,329) | (9,715) |
| Disposals depreciation | ‐ | ‐ | ‐ | ‐ | 186 | 186 |
| Net book amount (30 June 2021) |
8,496 | 11,088 | 33,839 | 185 | 23,078 | 76,686 |
| GROUP | Land | Buildings | Machinery | Vehicles | Equipment | Total |
| 31.12.2020 | ||||||
| Acquisition cost | 8,496 | 34,193 | 120,826 | 2,466 | 119,794 | 285,774 |
| Accumulated depreciation | ‐ | (22,446) | (83,422) | (2,259) | (92,023) | (200,151) |
| Net book value 31.12.2020 | 8,496 | 11,746 | 37,403 | 207 | 27,772 | 85,623 |
| 30.06.2021 | ||||||
| Acquisition cost | 8,496 | 34,334 | 120,826 | 2,466 | 120,243 | 286,365 |
| Accumulated depreciation | ‐ | (23,246) | (86,987) | (2,281) | (97,166) | (209,680) |
Net book value 30.06.2021 8,496 11,088 33,839 185 23,078 76,686
| COMPANY | Land | Buildings | Machinery | Vehicles | Equipment | Total | ||
|---|---|---|---|---|---|---|---|---|
| Year that ended on 31 December 2020 | ||||||||
| Opening net book amount (1 January 2020) |
8,496 | 12,126 | 44,389 | 87 | 30,040 | 95,138 | ||
| Additions | ‐ | 143 | 21 | 81 | 7,975 | 8,221 | ||
| Disposals | ‐ | ‐ | ‐ | (15) | (82) | (97) | ||
| Depreciation charge | ‐ | (1,509) | (6,965) | (26) | (11,581) | (20,082) | ||
| Disposals depreciation | ‐ | ‐ | ‐ | 12 | 82 | 94 | ||
| Impairment | ‐ | ‐ | (460) | ‐ | ‐ | (460) | ||
| Net book amount (31 December 2020) |
8,496 | 10,760 | 36,985 | 139 | 26,434 | 82,813 | ||
| Period that ended on 30 June 2021 | ||||||||
| Opening net book amount (1 January 2021) |
8,496 | 10,760 | 36,985 | 139 | 26,434 | 82,813 | ||
| Additions | ‐ | 141 | ‐ | ‐ | 413 | 554 | ||
| Disposals | ‐ | ‐ | ‐ | ‐ | (43) | (43) | ||
| Depreciation charge | ‐ | (731) | (3,459) | (13) | (5,025) | (9,228) | ||
| Disposals depreciation | ‐ | ‐ | ‐ | ‐ | 43 | 43 | ||
| Net book amount (30 June 2021) |
8,496 | 10,170 | 33,526 | 126 | 21,821 | 74,140 | ||
| COMPANY | Land | Buildings | Machinery | Vehicles | Equipment | Total |
|---|---|---|---|---|---|---|
| 31.12.2020 | ||||||
| Acquisition cost | 8,496 | 32,589 | 119,576 | 2,341 | 106,748 | 269,749 |
| Accumulated depreciation | ‐ | (21,828) | (82,592) | (2,202) | (80,314) | (186,935) |
| Net book value 31.12.2020 | 8,496 | 10,761 | 36,985 | 139 | 26,433 | 82,813 |
| 30.06.2021 | ||||||
| Acquisition cost | 8,496 | 32,730 | 119,576 | 2,341 | 107,118 | 270,260 |
| Accumulated depreciation | ‐ | (22,559) | (86,050) | (2,215) | (85,296) | (196,121) |
| Net book value 30.06.2021 | 8,496 | 10,171 | 33,526 | 126 | 21,821 | 74,140 |
Property, plant & equipment of the Group and the Company have not been pledged.
Right‐of‐use assets are analyzed as follows:
| GROUP | Buildings | Vehicles | Equipment | Total |
|---|---|---|---|---|
| Year that ended on 31 December 2020 | ||||
| Opening net book amount (1 January 2020) |
61,611 | 2,418 | 7 | 64,036 |
| Additions | 1,592 | 1,166 | 975 | 3,732 |
| Termination of leases | (2,549) | (43) | ‐ | (2,591) |
| Other movements | (380) | (13) | ‐ | (393) |
| Depreciation charge | (7,244) | (1,137) | (393) | (8,775) |
| Impairment | (14,145) | ‐ | ‐ | (14,145) |
| Net book amount (31 December 2020) |
38,885 | 2,391 | 588 | 41,864 |
| Period that ended on 30 June 2021 | ||||
| Opening net book amount (1 January 2021) |
38,885 | 2,391 | 588 | 41,864 |
| Additions | 604 | 227 | ‐ | 832 |
| Termination of leases | (861) | (51) | ‐ | (912) |
| Other movements | (38) | (21) | 2 | (57) |
| Depreciation charge | (3,046) | (547) | (169) | (3,761) |
| Net book amount (30 June 2021) |
35,545 | 2,000 | 421 | 37,965 |
| GROUP | Buildings | Vehicles | Equipment | Total |
|---|---|---|---|---|
| 31.12.2020 | ||||
| Acquisition cost | 53,083 | 4,649 | 984 | 58,716 |
| Accumulated depreciation | (14,198) | (2,259) | (396) | (16,852) |
| Net book value 31.12.2020 | 38,885 | 2,391 | 588 | 41,864 |
| 30.06.2021 | ||||
| Acquisition cost | 52,788 | 4,805 | 986 | 58,578 |
| Accumulated depreciation | (17,243) | (2,805) | (565) | (20,614) |
| Net book value 30.06.2021 | 35,545 | 2,000 | 421 | 37,965 |
| COMPANY | Buildings | Vehicles | Total |
|---|---|---|---|
| Year that ended on 31 December 2020 | |||
| Opening net book amount (1 January 2020) |
30,806 | 1,822 | 32,627 |
| Additions | 1,698 | 877 | 2,575 |
| Termination of leases | (2,458) | (11) | (2,470) |
| Other movements | (422) | ‐ | (422) |
| Depreciation charge | (5,305) | (850) | (6,155) |
| Net book amount (31 December 2020) |
24,318 | 1,838 | 26,155 |
| Period that ended on 30 June 2021 | |||
| Opening net book amount (1 January 2021) |
24,318 | 1,838 | 26,155 |
| Additions | 587 | 157 | 745 |
| Termination of leases | (861) | (10) | (871) |
| Other movements | (67) | (21) | (89) |
| Depreciation charge | (2,429) | (422) | (2,852) |
| Net book amount (30 June 2021) |
21,547 | 1,542 | 23,089 |
| COMPANY | Buildings | Vehicles | Total |
|---|---|---|---|
| 31.12.2020 | |||
| Acquisition cost | 34,394 | 3,514 | 37,908 |
| Accumulated depreciation | (10,076) | (1,677) | (11,753) |
| Net book value 31.12.2020 | 24,318 | 1,838 | 26,155 |
| 30.06.2021 | |||
| Acquisition cost | 34,052 | 3,641 | 37,693 |
| Accumulated depreciation | (12,505) | (2,099) | (14,604) |
| Net book value 30.06.2021 | 21,547 | 1,542 | 23,089 |
The right‐of‐use included in the category "Buildings" of the Group mainly refers to the Markopoulo Park, with a NBV of € 13,344 (2020: € 13,804), and PLAY Gaming Halls with a total NBV of € 20,398 (2020: € 22,703).
The "termination of leases" included in the category "Buildings" mainly relates to the early termination of contracts for PLAY Gaming Halls.
The interim consolidated and separate Statement of Financial Position includes the following amounts related to lease liabilities:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Non‐current lease liabilities | 46,295 | 50,112 | 19,074 | 22,011 |
| Current lease liabilities | 7,568 | 7,631 | 5,223 | 5,068 |
| Total | 53,863 | 57,743 | 24,297 | 27,079 |
Due to the Greek and Cypriot governments' decisions, the OPAP'sretail network in Greece remained closed since the beginning of the year up until 12.04.2021, when the OPAP stores resumed operations and street vendors also restarted the distribution of HELLENIC LOTTERIES SA products (Scratch & Passive lotteries) as of the same date, while Opap retail network in Cyprus remained closed for 41 days, from 10.01.2021 to 07.02.2021 and from 26.04.2021 to 09.05.2021. Moreover, on 24.05.2021 the VLTs operations restarted while, the horseracing facility in Markopoulo Park reopened on 17.05.2021.
According to Legislative Act 20.03.2020/2020 of the Greek Government, enterprises whose operation has been mandatorily suspended or temporarily interrupted based on special and extraordinary measures taken for precautionary or repressive purposes in relation to the coronavirus (COVID‐19) spread, shall be exempted from paying 100% of the total amount of rent due for the months from January until May 2021 and shall be exempted from paying 40% of the total amount of rent due for June 2021 for the commercial premises that they lease.
The effect of the above discount provided to lessees by the Greek State as well as discounts offered based on specific lease contracts have been accounted for as negative variable lease payments that are not dependent on an index or a rate and not as a lease modification. The total effect for the Group and the Company, € 3,421 and € 2,494, respectively, has been recorded in the Income Statement of the period.
Total payments of lease liabilities regarding capital and interest, amounts to € 1,676 (30.06.2020: € 3,642) for the Group and € 846 (30.06.2020: € 2,629) for the Company.
Income from subleases which refers to the sublease of PLAY Gaming Halls is included in line "Other operating income" of Income Statement (refer to Note 23) and amounts to € 433 (30.06.2020: € 1,886) at 30.06.2021 for both the Group and the Company.
The investments in associates analysis is as follows:
| 30.06.2021 | 31.12.2020 | |
|---|---|---|
| KAIZEN GAMING LIMITED | 8,893 | 8,079 |
| Total | 8,893 | 8,079 |
The value of investment in associates results as follows:
| 30.06.2021 | 31.12.2020 | |
|---|---|---|
| Opening balance | 8,079 | 54,158 |
| Share of operating profits | 814 | 10,856 |
| Dividends received | ‐ | (6,799) |
| Transfer to subsidiaries | ‐ | (50,137) |
| Closing balance | 8,893 | 8,079 |
Other non‐current assets are analysed as follows:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Guarantee deposits | 2,254 | 1,263 | 1,121 | 1,133 |
| Prepayments of retirement benefits & housing loans to personnel |
344 | 357 | 344 | 357 |
| Loans receivable | 2,512 | 2,878 | 13,602 | 11,604 |
| Prepayments to suppliers | 17,862 | 19,582 | 17,862 | 19,582 |
| GGR contribution receivable | 60,407 | 22,658 | 60,407 | 22,658 |
| Other receivables | 228 | 379 | ‐ | ‐ |
| Total | 83,607 | 47,117 | 93,337 | 55,334 |
Loans receivable of the Group refer to loans that the Company and its subsidiary, OPAP INVESTMENT LTD, have granted of € 2,352 and € 160 (2020: € 2,854 and € 24), respectively. The maturity of these loansis until December 2024.
At Company level, loans receivable also include loans of € 3,500 granted to TORA DIRECT SINGLE MEMBER S.A. and € 12,000 granted to HORSE RACES SINGLE MEMBER S.A. (2020: € 3,500 και € 7,000, respectively). These loans to subsidiaries bear interest rate of 3.50%. Within 2021, the Company recognized an additional impairment loss of € 2,500 on the loans receivable from HORSE RACES SINGLE MEMBER S.A., following the impairment of € 1,750 recognized in 2020, taking into consideration current market conditions and how these affect operating activities of HORSE RACES SINGLE MEMBER S.A.. As a result, the net amount of loans receivable from HORSE RACES SINGLE MEMBER S.A. as at 30.06.2021 is € 7,750 (2020: € 5,250). The impairment of € 2,500 is included in "Net impairment losses on financial assets" of Income Statement. The prepayments to suppliers of € 17,862 (€ 19,582 in 2020) represent the long‐term portion of a VLTs vendor claim for an advance payment in accordance with a special clause in the respective contract regarding provision of services.
GGR contribution receivable constitutes the discounted additional consideration relating to the 10‐year extension of the Company's license which refers to the exclusive right to conduct certain numerical lottery and sports betting games. The nominal amount of the specific receivable with maturity date the end of the extended period of the license (2030) amountsto € 64,666 (2020: € 24,177), and has been discounted using the spot interest rate at each reporting date of a bond of the Greek Government ending in 2030. The additional payment or refund is due in lump sum in 2030.
Deferred taxes are calculated in full on temporary differences under the balance sheet method using the principal tax rates that apply to the countries in which the companies of the Group operate.
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Deferred tax asset | 35,423 | 35,467 | ‐ | ‐ |
| Deferred tax liability | (40,826) | (26,642) | (39,309) | (24,833) |
| Net deferred tax asset/(liability) | (5,402) | 8,824 | (39,309) | (24,833) |
The movement in deferred taxes is as follows:
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | ||
| Opening balance, net deferred tax asset/(liability) |
8,824 | (3,633) | (24,833) | (21,015) | |
| Charge recognised in profit or loss (Note 30) | (14,089) | 12,377 | (14,339) | (3,890) | |
| Charge recognised in other comprehensive income (Note 30) |
(137) | 81 | (137) | 72 | |
| Closing balance, net deferred tax asset/(liability) |
(5,402) | 8,824 | (39,309) | (24,833) |
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred income taxes relate to the same fiscal authority.
The Law 4799/2021 (Government's Gazette A' 78/18.05.2021) amended the Law 4649/2019 regarding the corporate income tax and reduced the Corporate Income tax rate from 24% to 22% for financial years 2021 onwards.
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800 The corporate income tax rate in Cyprus is 12.5% and in Malta 35%. The movement in deferred tax assets and liabilities per category (prior to offsetting balances within the same tax jurisdiction) is as follows:
| GROUP | Balance at 1 January 2021 |
Recognised in profit or loss (Note 30) |
Recognised in Other Comprehensive Income (Note 30) |
Balance at 30 June 2021 |
|---|---|---|---|---|
| Analysis of deferred tax assets (before set ‐ offs) | ||||
| Property, plant and equipment | 305 | (35) | ‐ | 271 |
| Intangible assets | 5,387 | (612) | ‐ | 4,776 |
| Right‐of‐use assets | 3,908 | (391) | ‐ | 3,517 |
| Deferred expenses | 142 | (17) | ‐ | 126 |
| Employee benefits | 848 | (45) | ‐ | 803 |
| Provisions | 3,448 | (1,258) | ‐ | 2,190 |
| Accrued liabilities | 20,623 | 1,455 | (137) | 21,941 |
| Tax losses | 6,868 | 17 | ‐ | 6,885 |
| 41,529 | (884) | (137) | 40,507 | |
| Analysis of deferred tax liabilities (before set ‐ offs) | ||||
| Property, plant and equipment | (297) | (286) | ‐ | (584) |
| Intangible assets | (31,859) | 715 | ‐ | (31,143) |
| Deferred expenses | (546) | (13,636) | ‐ | (14,182) |
| Accrued liabilities | (3) | 2 | ‐ | (1) |
| (32,705) | (13,205) | ‐ | (45,910) | |
| Net deferred tax asset/(liability) | 8,824 | (14,089) | (137) | (5,402) |
| COMPANY | Balance at 1 January 2021 |
Recognised in profit or loss (Note 30) |
Recognised in Other Comprehensive Income (Note 30) |
Balance at 30 June 2021 |
|---|---|---|---|---|
| Analysis of deferred tax assets (before set ‐ offs) | ||||
| Right‐of‐use assets | 318 | (37) | ‐ | 281 |
| Employee benefits | 730 | (59) | ‐ | 671 |
| Provisions | 3,321 | (1,290) | ‐ | 2,031 |
| Accrued liabilities | 1,449 | 538 | (137) | 1,850 |
| 5,818 | (848) | (137) | 4,833 | |
| Analysis of deferred tax liabilities (before set ‐ offs) | ||||
| Property, plant and equipment | (297) | (286) | ‐ | (584) |
| Intangible assets | (29,808) | 410 | ‐ | (29,397) |
| Deferred expenses | (546) | (13,615) | ‐ | (14,160) |
| (30,650) | (13,491) | ‐ | (44,141) | |
| Net deferred tax liability | (24,833) | (14,339) | (137) | (39,309) |
On 30.06.2021, certain Group entities had accumulated tax losses of € 98,121 (2020: € 90,793). HELLENIC LOTTERIES S.A. recognised deferred tax asset of € 6,885 (2020: € 6,868), attributable to losses amounting to € 31,295 (2020: € 28,617), as this deferred tax asset will be recoverable using the estimated future taxable income based on approved business plans.
For the remaining € 66,826 accumulated tax losses (2020: € 62,176) of other Group's entities, no deferred tax asset has been recognized due to the uncertainty of the timing of available taxable profits against which these losses could be offset.
Current income tax asset for the Group as at 30.06.2021 amounts to € 3,418 (2020: € 2,359).
Current income tax liabilities for the Group and the Company as at 30.06.2021 amount to € 45,031 and € 16,141, respectively (2020: € 27,755 and € 13,119, respectively).
Under Greek tax regulations, an income tax advance is paid to the tax authorities each year calculated on 80% of the year's current income tax liability. Such advance is then netted off with the following year's income tax liability.
The analysis of inventories is as follows:
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | ||
| GHs construction cost | 1,602 | 2,669 | 1,602 | 2,669 | |
| Consumable materials | 10,440 | 3,500 | 1,120 | 1,343 | |
| Total | 12,041 | 6,169 | 2,721 | 4,011 |
In the Group's inventories are included:
As at 30.06.2021, the Group and the Company recognised a provision for obsolete inventories concerning dismantling cost of Gaming Halls of € 195 (refer to Note 28).
The Group and the Company have not pledged their inventories as collateral.
The analysis of trade receivables is as follows:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Receivables from agents | 93,824 | 64,068 | 45,207 | 17,834 |
| Discounted short term receivables from agents (accounts under arrangement from agencies) |
685 | 535 | ‐ | ‐ |
| Doubtful receivables from agents | 39,148 | 39,837 | 37,270 | 37,960 |
| Other receivables | 13,131 | 8,896 | 10,982 | 11,194 |
| Sub total short term trade receivables | 146,787 | 113,336 | 93,460 | 66,988 |
| Less provisions for short term trade receivables |
(42,996) | (44,856) | (38,426) | (40,142) |
| Total short term trade receivables | 103,791 | 68,480 | 55,034 | 26,846 |
| Discounted long term receivables from agents |
5,115 | 8,496 | 3,970 | 7,249 |
| Less provisions for long term receivables from agents |
(1,145) | (1,247) | ‐ | ‐ |
| Total long term trade receivables | 3,970 | 7,249 | 3,970 | 7,249 |
| Total trade receivables | 107,762 | 75,728 | 59,004 | 34,094 |
As far as the provisions for bad and doubtful debts are concerned, it is noted that vast majority of the provisions were created before 2014. The net movement of these provisions is only € 8,761 for the Group and € 3,047 for the Company over the last 7,5 years.
Management considers that the Group's main credit risk arises from doubtful receivables from agents. The Group was more than covered against this risk, so decreased the provision for doubtful debts by € 1,382. OPAP S.A. and HELLENIC LOTTERIES S.A. reversed € 1,136 and € 328, respectively, of the provisions already formed, while additional provisions of € 82 were formed by HORSE RACES SINGLE MEMBER S.A. of € 51, by TORA DIRECT SINGLE MEMBER S.A. of € 22 and by TORA WALLET SINGLE MEMBER S.A. of € 9, according to IFRS 9 requirements. Furthermore, the Company's used provision amounts to € 581 due to the write‐off of the relevant receivables.
Discounted long term receivables include arrangements with agents that will be settled until June 2029. The Group and the Company have not pledged their receivables as collateral.
The analysis of cash and cash equivalents is as follows:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Cash in hand | 1,418 | 1,087 | 936 | 685 |
| Short term bank deposits | 615,936 | 505,785 | 372,412 | 278,806 |
| Total | 617,354 | 506,873 | 373,348 | 279,491 |
Short term bank deposits are comprised by current accounts and short‐term time deposits. The effective interest rates are based on floating rates and are negotiated on a case by case basis.
Short term bank deposits of the Group and the Company also include amounts from electronic payment processors, of € 22,884 and € 437 respectively, which, at the time of purchase, are readily convertible to known amount of cash and that there is an insignificant risk of changes in value.
Fixed deposits with maturity between 3 and 12 months from the date of acquisition of € 3,629 (2020: € 4,629) are included in "Short‐term investments" in Consolidated Statement of Financial Position.
Short term bank deposits include restricted cash of amount € 146 (2020: € 206), mainly due to legal decisions of OPAP S.A..
The Group retains its deposits at reputable European financial institutions.
The Group's non‐controlling interests amount to € 12,628 as of 30 June 2021 (2020: € 15,281), arising from HELLENIC LOTTERIES S.A., NEUROSOFT S.A. and STOIXIMAN business (Greek and Cypriot operations). They represent the 16.5% of HELLENIC LOTTERIES S.A. equity, which is owned by SCIENTIFIC GAMES GLOBAL GAMING S.R.L., 32.28% of NEUROSOFT S.A. and 15.51% of STOIXIMAN business (Greek and Cypriot operations).
The summarised financial information basic financial data of the aforementioned companies are presented below. The amounts disclosed for each subsidiary are before inter‐company eliminations.
| Summarized statement of financial position as at June 30, 2021 |
HELLENIC LOTTERIES S.A. |
NEUROSOFT S.A. |
STOIXIMAN business (Greek and Cypriot operations) |
Total |
|---|---|---|---|---|
| NCI percentage | 16.5% | 32.28% | 15.51% | |
| Non‐current assets | 107,382 | 7,984 | 6,021 | |
| Current assets | 99,281 | 4,892 | 119,304 | |
| Non‐current liabilities | (50,663) | (2,482) | (2,515) | |
| Current liabilities | (115,417) | (4,125) | (97,607) | |
| Net assets | 40,583 | 6,269 | 25,203 | |
| Net assets attributable to NCI | 6,696 | 2,024 | 3,908 | 12,628 |
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800
| Summarized income statement and other comprehensive income for the period ended June 30, 2021 |
HELLENIC LOTTERIES S.A. |
NEUROSOFT S.A. |
STOIXIMAN business (Greek and Cypriot operations) |
Total |
|---|---|---|---|---|
| Revenue (GGR) | 37,092 | ‐ | 193,621 | |
| Other operating income | 72 | 6,600 | 0 | |
| Profit/(loss) after tax | (14,115) | (556) | 25,295 | |
| Other comprehensive income, net of tax | ‐ | ‐ | ||
| Total comprehensive income | (14,115) | (556) | 25,295 | |
| Profit/(loss) after tax attributable to NCI | (2,329) | (180) | 3,922 | 1,414 |
| Other comprehensive income, net of tax attributable to NCI |
‐ | - | ‐ | - |
| Dividends paid to NCI | ‐ | ‐ | 4,067 | 4,067 |
| Summarized cash flow information for the period ended June 30, 2021 |
HELLENIC LOTTERIES S.A. |
NEUROSOFT S.A. |
STOIXIMAN business (Greek and Cypriot operations) |
|---|---|---|---|
| Cash flows from operating activities | 4,390 | 215 | 34,512 |
| Cash flows from investing activities | 35 | (149) | (4,975) |
| Cash flows from financing activities | (21) | (407) | (4) |
| Net increase/(decrease) in cash and cash equivalents |
4,404 | (341) | 29,534 |
The Group's and Company's borrowing is as follows:
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | ||
| Total long‐term loans | 1,009,622 | 1,007,830 | 959,278 | 957,440 | |
| Short‐term loans | |||||
| Current portion of long term loans | 34,684 | 32,748 | 52,968 | 52,690 | |
| Short‐term loans (overdraft accounts) | 102 | 289 | ‐ | 2 | |
| Total short‐term loans | 34,786 | 33,036 | 52,968 | 52,692 | |
| Total loans | 1,044,408 | 1,040,866 | 1,012,246 | 1,010,132 |
| 31.12.2020 | 30.06.2021 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| GROUP | Year of maturity |
Book value |
New Loans |
Repayments | Payments of interest of previous year |
Provision of Interest |
Amortization of expenses |
Outstanding nominal value |
Book value |
| Loan, amount € 916 | 2025 | 485 | ‐ | (46) | (4) | ‐ | ‐ | 435 | 435 |
| Bond Loan, amount €250,000 | 2023 | 247,163 | ‐ | ‐ | (289) | 271 | 684 | 250,000 | 247,829 |
| Bond Loan, amount €200,000 | 2027 | 197,053 | ‐ | ‐ | (758) | 747 | 245 | 200,000 | 197,286 |
| Bond Loan, amount €300,000 | 2024 | 298,324 | ‐ | ‐ | (199) | 177 | 271 | 300,000 | 298,572 |
| Bond Loan, amount €50,000 | 2023 | 50,125 | ‐ | ‐ | (125) | 121 | ‐ | 50,000 | 50,121 |
| Bond Loan, amount €100,000 | 2023 | 96,621 | ‐ | ‐ | (242) | 249 | 589 | 100,000 | 97,217 |
| Bond Loan, amount €50,000 | 2022 | 50,219 | ‐ | ‐ | (314) | 306 | 31 | 50,000 | 50,243 |
| Bond Loan, amount €100,000 | 2024 | 100,587 | ‐ | ‐ | (725) | 708 | 18 | 100,000 | 100,589 |
| Overdraft, amount € 1,500 | 287 | ‐ | (180) | (7) | 2 | ‐ | 100 | 102 | |
| Overdraft, amount € 3,000 | ‐ | 2,014 | ‐ | ‐ | ‐ | ‐ | 2,014 | 2,014 | |
| Overdraft, amount € 15,000 | 2 | ‐ | (2) | ‐ | ‐ | ‐ | ‐ | ‐ | |
| Total | 1,040,866 | 2,014 | (228) | (2,663) | 2,581 | 1,838 | 1,052,549 | 1,044,408 |
| 31.12.2020 | 30.06.2021 | |||||||
|---|---|---|---|---|---|---|---|---|
| COMPANY | Year of maturity |
Book value | Repayments | Payments of interest of previous year |
Provision of Interest |
Amortization of expenses |
Outstanding nominal value |
Book value |
| Bond Loan, amount €250,000 | 2023 | 247,163 | ‐ | (289) | 271 | 684 | 250,000 | 247,829 |
| Bond Loan, amount €200,000 | 2027 | 197,053 | ‐ | (758) | 747 | 245 | 200,000 | 197,286 |
| Bond Loan, amount €300,000 | 2024 | 298,324 | ‐ | (199) | 177 | 271 | 300,000 | 298,572 |
| Bond Loan, amount €100,000 | 2023 | 96,621 | ‐ | (242) | 249 | 589 | 100,000 | 97,217 |
| Loan, amount €20,000 | 2020 | 20,163 | ‐ | ‐ | 347 | ‐ | 20,000 | 20,510 |
| Bond Loan, amount €50,000 | 2022 | 50,219 | ‐ | (314) | 306 | 31 | 50,000 | 50,243 |
| Bond Loan, amount €100,000 | 2024 | 100,587 | ‐ | (725) | 708 | 18 | 100,000 | 100,589 |
| Overdraft, amount € 15,000 | 2 | (2) | ‐ | ‐ | ‐ | ‐ | ‐ | |
| Total | 1,010,132 | (2) | (2,527) | 2,805 | 1,838 | 1,020,000 | 1,012,246 |
The average interest rate of the Group and the Company for the first half of 2021 was 2.57% (2020: 2.7%). On 27.03.2020, the Company issued and collected a bond loan of € 100,000 from Alpha Bank with maturity date on 27.03.2021 and an extension option for 12 months. On 02.10.2020, the bond loan was fully repaid, earlier and without extra cost. These bonds were not cancelled by the Company. The extension option was exercised by the Company, Alpha bank consented to this request and the bond loan is available for withdrawal until 27.02.2022.
On 04.05.2020, the Company signed another bond loan agreement of € 100,000 with Piraeus Bank with maturity date on 04.05.2022, which may be extended for 12 months. The respective amount as at 30.06.2021 has not been collected. The relevant arrangement fees of € 760 were payable to Piraeus Bank upon signing the new loan agreement. Currently, this amount is included in "Other current assets" and will be recognised as transaction cost when the facility is drawn down.
Moreover, it should be mentioned that the Company has a bond loan from Alpha bank of € 100,000, with first maturity date on 04.10.2021 and option to be extended until 04.10.2024. The Management has the intention to exercise the aforementioned option. Similarly, HELLENIC LOTTERIES S.A. has a bond loan from Alpha Bank of € 50,000 with maturity date on 01.09.2021 and an option of further extension until 01.09.2023, which is intended to be exercised.
In addition, the Company has a bond loan from Eurobank of € 300,000 payable in instalments up to 2024. As at 30.06.2021, the Group and the Company have total undrawn borrowing facilities of € 240,384 and € 235,000, respectively.
HELLENIC LOTTERIES S.A. obtained waiver for its bond loan from Alpha bank prior to the reporting date. All loan agreements of the Group and the Company do not contain mortgages and pledges on the assets. It should be noted that the Company has granted a corporate guarantee of € 41,750 in favor of HELLENIC LOTTERIES S.A. for its bond loan from Alpha bank of € 50,000.
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Derivative (interest rate swap) | 2,124 | 2,748 | 2,124 | 2,748 |
| Grants | 594 | 669 | ‐ | ‐ |
| Additional consideration for the acquisition of STOIXIMAN business (Greek and Cypriot operations) |
‐ | 95,894 | ‐ | ‐ |
| Other liabilities | 3,242 | 465 | ‐ | ‐ |
| Total | 5,960 | 99,776 | 2,124 | 2,748 |
The other non‐current liabilities analysis is as follows:
Payables from financial instruments of the Group and the Company refer to liability arising from interest rate swap acquired to hedge the risk of floating rate the latter is exposed to. The valuation of the derivative resulted from the difference between the contractual interest rate swap (0.365%) versus the market interest rate of the same derivative as of 30.06.2021.
The contingent consideration relating to the acquisition of the subsidiary STOIXIMAN business (Greek and Cypriot operations), recognised in 2020, is transferred to other current liabilities, as it is payable until 30.06.2022 (refer to Note 18).
Other liabilities include an amount of € 2,500 which is the long term liability of STOIXIMAN business (Greek and Cypriot operations) to the Hellenic Gaming Commission relating to the acquisition of the online betting and other online games licenses, an amount of € 602 (2020: € 327), which is payout to winners of HELLENIC LOTTERIES S.A. relating to Scratch game and an amount of € 140 (2020: € 138), which is repayable state cash advance of NEUROSOFT S.A..
The analysis of trade payables is as follows:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Suppliers (services, assets, etc.) | 32,640 | 51,597 | 16,607 | 30,673 |
| Payout to the winners and unclaimed winnings |
89,944 | 89,833 | 22,498 | 19,618 |
| Other payables (salaries – subsidies) | 1,036 | 1,636 | 539 | 1,301 |
| Contracts' liabilities | 8,385 | 6,379 | 2,472 | 807 |
| Total | 132,006 | 149,444 | 42,116 | 52,400 |
Suppliers (services, assets, etc.) are non‐interest bearing and are normally settled within 60 days for both, the Group and
the Company.
The analysis of other current liabilities is as follows:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Donations | 2,239 | 2,276 | 2,236 | 2,276 |
| Sponsorships | 8,279 | 7,038 | 1,382 | 681 |
| Guarantee deposits from agents | 10,762 | 10,188 | 8,342 | 7,846 |
| Wages and salaries | 13,307 | 8,800 | 9,855 | 7,944 |
| Dividends and interim dividends payable | 192,928 | 2,401 | 188,862 | 2,401 |
| Insurance contributions payable | 2,265 | 3,274 | 1,617 | 2,437 |
| Other liabilities | 82,192 | 49,957 | 23,315 | 6,597 |
| Contribution on the net revenues | 32,047 | 21,090 | 13,811 | 2,234 |
| Other taxes (withholding, VAT) | 11,394 | 10,769 | 6,958 | 6,195 |
| Additional consideration for the acquisition of STOIXIMAN business (Greek and Cypriot operations) |
111,112 | 32,400 | ‐ | ‐ |
| Total | 466,524 | 148,194 | 256,376 | 38,611 |
Guarantee deposits from agents represent:
The Wages and salaries variation observed between the comparative periods is mainly attributed to the bonus liability for the year 2020 which was paid after the end of the current reporting period and also the bonus provision of the subsidiary STOIXIMAN business (Greek and Cypriot operations) of € 2,329 (2020: 0). Dividends and interim dividends payable include the 2020 dividend that was approved by the 21st Annual Ordinary Shareholders General Meeting of the Company on 17.06.2021 of € 186,778 (refer to Note 19).
The significant increase in Other liabilities of the current year is mainly attributed to the provision formed by HELLENIC LOTTERIES S.A. of € 51,788 (2020: € 37,721) in case of dismissal of the arbitration procedure against the Hellenic Republic and the Hellenic Republic Asset Development Fund (HRADF) as well as the accrued liabilities relating to services received of € 25,812 (2020: € 9,267). Additionally, in the current period's Other liabilities, an amount of € 1,250 is included and represents the short term liability of the subsidiary STOIXIMAN business(Greek and Cypriot operations) to the Hellenic Gaming Commission relating to the acquisition of the online betting and other online games licenses.
Finally, the amount of € 111,112 (2020: € 32,400) represents the short term outstanding premium amount of € 13,874 (2020: € 14,615) and the short term contingent consideration of € 97,238 (2020: € 17,785) relating to the acquisition of the subsidiary STOIXIMAN business (Greek and Cypriot operations). Both amounts have been discounted using the Company's average borrowing interest rate as at 31.12.2020.
The 21st Annual Ordinary Shareholders General Meeting, held on 17.06.2021, approved a gross dividend of € 0.55 (in absolute amount) per share for the fiscal year 2020. The total approved gross dividend amounted to € 186,778. The distribution was proceeded through the implementation of the general terms of the five‐ year dividend reinvestment program as approved by the Ordinary General Meeting of the Shareholders of the Company, dated 22.05.2019.
At Company's level, as per L. 4389/2016, a 35% contribution was imposed on OPAP S.A. net revenue (revenue minus players' winnings as per Greek GAAP) as of 01.01.2016, instead of 30% that was applicable since 01.01.2013 as per L. 4093/2012, excluding VLTs for which according to the respective concession agreement a 30% GGR contribution is imposed. As per the article 2 of the L. 4093/2012, where it is stated that exceptionally, the 35% contribution on GGR for the games (legacy games) conducted by OPAP S.A. pursuant to the agreement of 15.12.2000 and its amendment of 12.12.2011, was in force until 12.10.2020. Onwards, the Company's GGR contribution relating to the legacy games returns to the rate of 30%.
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800 At Group level and specifically, according to the relevant concession agreements of the subsidiaries HELLENIC LOTTERIES S.A. and HORSE RACES SINGLE MEMBER S.A., a 30% contribution on GGR is imposed. Moreover, based on the Betting Tax of Cyprus introduced in 2012, a betting tax of 13% is imposed on net revenues of OPAP SPORTS LTD and STOIXIMAN business (Greek and Cypriot operations) for its Cypriot operations. It is noted that STOIXIMAN business (Greek and Cypriot operations) for its Greek operations is charged with 35% contribution on GGR. Finally, based on the interstate agreement between Greece and Cyprus, a special levy is paid to the Cypriot State from OPAP CYPRUS LTD.
The amount of contribution on net revenue from games for the first semester 2021 for the Group amounts to € 196,406 (2020: € 172,691), of which the amount of € 72,912 relates to STOIXIMAN business (Greek and Cypriot operations), and for the Company amounts to € 92,518 (2020: € 149,334).
Finally, a provision of € 14,067 has been formed by HELLENIC LOTTERIES S.A., which is included in "GGR contribution and other levies and duties" of the condensed consolidated financial statements, in case of dismissal of the arbitration procedure against the Hellenic Republic and the Hellenic Republic Asset Development Fund (HRADF).
For the Company, the agents' commissions are calculated as a percentage on Net Gaming Revenue (NGR), while for the rest of the gaming companies of the Group, they are calculated as a percentage on wagers depending on the game and especially for HELLENIC LOTTERIES S.A on the sales' channel (wholesalers, mini markets, OPAP S.A. sales' network etc.) as well.
The variation observed between the comparative periods is attributed to the reduced operating activity resulting from the coronavirus (COVID‐19) pandemic.
This kind of commission refers to the entities of the Group which operate in the gaming sector and their level is connected to the level of the gaming activity as they are calculated as a percentage on wagers or net gaming revenue (NGR). The variation observed in other NGR related commissions is attributed to the full consolidation of STOIXIMAN business (Greek and Cypriot operations) since December 2020, while during the first semester of 2020, STOIXIMAN business (Greek and Cypriot operations) was part of the associate KAIZEN GAMING LIMITED.
The analysis of other operating income is as follows:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| Period that ended on June 30, | 2021 | 2020 | 2021 | 2020 |
| Revenues from prepaid cards, mobile top‐ups and bill payments |
40,285 | 40,547 | ‐ | ‐ |
| Revenue from IT services | 3,388 | 4,197 | ‐ | ‐ |
| Management fees | ‐ | ‐ | 11,188 | 9,953 |
| Income from subsidies | 13,692 | 13,868 | 12,702 | 11,954 |
| Other income | 8,901 | 8,348 | 4,938 | 5,258 |
| Total | 66,266 | 66,960 | 28,828 | 27,165 |
Revenues from prepaid cards, mobile top‐ups and bill payments relate to TORA DIRECT SINGLE MEMBER S.A. and TORA WALLET SINGLE MEMBER S.A. revenue, while revenue from IT services relate to NEUROSOFT S.A. revenue.
At Group level, 'income from subsidies' of the current period mainly includes a 25% discount on certain tax liabilities of € 9,590 (2020: € 12,251) and a lease discount of € 4,039 (2020: € 1,070), which both relate to the measures introduced by the Greek authorities against coronavirus (COVID‐19) impact. At Company level, the aforementioned income amounts to € 9,590 (2020: € 11,483) and € 3,112 (2020: € 471), respectively.
Finally, the current's period 'other income' of the Group, among others, includes an amount of € 3,582 (2020: € 2,593) which represents tax return from Maltesian tax authorities relating to OPAP INVESTMENT LTD dividends received, an amount of € 1,326 (2020: € 331) relating to income from sales of PLAY Gaming Halls and Opap Stores construction, an amount of € 433 (2020: € 1,886) relating to income from operating leases (refer to Note 7) and an amount of € 947 (2020: € 511) which represents extraordinary and prior year income and income from unused provisions.
As per the Supplementary agreement between the Company and the Hellenic Republic Asset Development Fund (HRADF) dated 12.12.2011 and its amendment of 29.04.2013 relating to the Company's 10‐year extension of the exclusive right i.e. until 12.10.2030, the 80% of the absolute consideration which amounted to € 375,000 represents a GGR contribution prepayment of the Company for the extended period. The 80% of the Absolute consideration equals to € 300,000 the future value of which defined at € 1,831,200. For the period from 01.01.2021 to 30.06.2021 the portion of the prepaid contribution of € 1,831,200, as adjusted for the corporate tax impact, amounts to € 100,804 and has been incorporated as an expense under 'GGR contribution and other levies and duties' and simultaneously, as an income under 'Other operating income related to the extension of the concession of the exclusive right' in Condensed Income Statement.
The other operating cost of the Group mainly includes the consumption of TORA DIRECT SINGLE MEMBER S.A. phone cards amounting to € 35,123 (2020: € 36,265) and the consumption of NEUROSOFT S.A. goods of € 539 (2020: € 755) for the production and development of software and IT systems.
| GROUP | COMPANY | |||
|---|---|---|---|---|
| Period that ended on June 30, | 2021 | 2020 | 2021 | 2020 |
| Wages and salaries | 30,688 | 31,843 | 23,181 | 26,224 |
| Social security costs | 5,338 | 6,321 | 4,375 | 5,134 |
| Other staff costs | 800 | 725 | 543 | 588 |
| Employee benefit plans | 833 | 841 | 762 | 773 |
| Termination compensations | 1,192 | 187 | 1,160 | 101 |
| Total | 38,852 | 39,917 | 30,021 | 32,821 |
The analysis of payroll expenses of the Company and the Group is as follows:
The number of employees of the Company as at 30.06.2021 and 30.06.2020 is 1,132 and 1,184 respectively, while the Group's number at the same reporting periods was 1,470 and 1,581, respectively.
The analysis of marketing expenses is as follows:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| Period that ended on June 30, | 2021 | 2020 | 2021 | 2020 |
| CSR and sponsorships | 12,773 | 8,925 | 6,611 | 7,228 |
| Advertising | 31,586 | 14,479 | 16,992 | 11,361 |
| Total | 44,359 | 23,404 | 23,603 | 18,589 |
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800 The Company's CSR expense for the first semester 2021 amounts to € 1,711 (2020: € 1,725) and the sponsorships expense to € 4,900 (2020: € 5,503). At Group level, the relevant expenses are € 2,093 and € 10,680 (2020: € 1,727 and € 7,198), respectively. The variation observed between the comparative periods is mainly attributed to the full consolidation of STOIXIMAN business(Greek and Cypriot operations) in 2021, of which the CSR and sponsorship expense of the current period amounts to € 4,278 and the advertising expense to € 10,935.
| GROUP | COMPANY | |||
|---|---|---|---|---|
| Period that ended on June 30, | 2021 | 2020 | 2021 | 2020 |
| IT related costs | 18,138 | 10,852 | 13,248 | 12,697 |
| Utilities & Telecommunication costs | 4,801 | 5,731 | 4,759 | 5,424 |
| Rentals | 317 | 828 | 207 | 375 |
| Other | 67,204 | 34,633 | 16,155 | 27,587 |
| Inventory consumption | 1,251 | 1,892 | 1,135 | 1,748 |
| Total | 91,710 | 53,936 | 35,504 | 47,830 |
The analysis of other operating expenses is as follows:
The Group's IT related cost of the current period is presented significantly increased compared to the previous period mainly due to the full consolidation of STOIXIMAN business (Greek and Cypriot operations) in 2021, of which the relevant expense amounts to € 6,427.
The Group's 'other' category includes a various range of operating expenses such as professional fees of € 33,983 (2020: € 15,595), of which the amount of € 20,136 relatesto STOIXIMAN business(Greek and Cypriot operations), bank commissions of € 14,601 (2020: € 613) of which the amount of € 13,788 relates to STOIXIMAN business (Greek and Cypriot operations), other taxes of € 7,270 (2020: € 964) of which the amount of € 6,364 relates to STOIXIMAN business (Greek and Cypriot operations), repair and maintenance cost of € 705 (2020: € 872), subscriptions of € 1,221 (2020: € 956), financial support to agents of € 1,919 (2020: € 5,161) related to the measures undertaken due to the coronavirus (COVID‐19) impact, insurance cost of € 860 (2020: € 606), consumables of € 673 (2020: € 1,429), travelling expenses of € 541 (2020: € 885) and the Company's provision for obsolete inventories of € 195 (2020: € 0).
At Company level, the significant decrease observed at the current period is mainly attributed to the impairments recorded in the first semester of 2020 to the investments in its subsidiaries HORSE RACES SINGLE MEMBER S.A. and OPAP INTERNATIONAL LTD of € 1,800 and € 2,000 respectively, the reduced professional fees by € 2,270, and the litigation provision reversal (income) of € 686 (2020: expense of € 428).
The analysis of financial results is as follows:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| Period that ended on June 30, | 2021 | 2020 | 2021 | 2020 |
| Interest expense from lease | (1,022) | (1,149) | (435) | (537) |
| Interest and expenses of bond loans | (15,598) | (18,952) | (15,181) | (18,185) |
| Other financial expenses | (2,939) | (1,477) | (568) | (912) |
| Capital cost of employee benefit plans | (10) | (17) | (9) | (15) |
| Discounting interest of receivables | (2,898) | ‐ | (2,873) | ‐ |
| Finance costs | (22,468) | (21,595) | (19,066) | (19,649) |
| Bank deposits | 122 | 922 | 58 | 629 |
| Interest income from loans to third parties | 63 | 397 | 479 | 227 |
| Other financial income | 67 | 8,201 | 65 | 8,115 |
| Reversal of previous period discount interest | 504 | ‐ | 482 | ‐ |
| Discounting interest of payables | 207 | ‐ | ‐ | ‐ |
| Finance income | 963 | 9,521 | 1,084 | 8,971 |
| Net finance costs | (21,505) | (12,075) | (17,982) | (10,677) |
The 'other financial expenses' of the Group include an amount of € 1,729 which represents the cost of the contingent consideration (earn out) relating to the acquisition of STOIXIMAN business (Greek and Cypriot operations).
The 'discounting interest of receivables', for both Group and Company, includes the discounting of the 'Additional consideration' relating to the license extension 2020‐2030 of € 2,873 (2020: € 0).
Finally, it is noted that the 'other financial income', for both Group and Company, of the first semester 2020 includes the modification gain of € 8,096 resulted from the renegotiation of the interest rate of two loans.
The income tax charged to the Statement of profit or loss and other comprehensive income for the first semester of 2021 and 2020 is analyzed as follows:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| Period that ended on June 30, | 2021 | 2020 | 2021 | 2020 |
| Current tax | (19,210) | (8,770) | (4,874) | (8,136) |
| Deferred tax | (13,360) | 2,015 | (16,414) | (3,646) |
| Deferred tax effect from tax rate change | (729) | ‐ | 2,075 | ‐ |
| Income tax expense | (33,299) | (6,754) | (19,212) | (11,782) |
| Effective tax rate | 28.5% | 27.2% | 20.9% | 26.1% |
The deferred tax expense was adversely affected by € 729 for the Group and positively by € 2,075 for the Company due to the reduction of the corporate income tax rate in Greece. More specifically, the Law 4799/2021 (Government's Gazette A' 78/18.05.2021) amended the Law 4649/2019 regarding the corporate income tax and reduced the Corporate Income tax rate from 24% to 22% for financial years 2021 onwards. The corporate income tax rate in Cyprus is 12.5% and in Malta 35%.
| GROUP | COMPANY | |||
|---|---|---|---|---|
| Period that ended on June 30, | 2021 | 2020 | 2021 | 2020 |
| Deferred tax | (131) | 97 | (131) | 97 |
| Deferred tax effect from tax rate change | (6) | ‐ | (6) | ‐ |
| Total | (137) | 97 | (137) | 97 |
The losses of the first semester of 2021 for which deferred tax asset was recognized amounted to € 2,679, as these tax losses will be utilized in the foreseeable future, considering the future expected performance of these operations.
The Group's Financial Statements for the first semester of 2021 were consolidated by SAZKA Group a.s.. The term "related parties" includes not only the Group's companies, but also companiesin which the parent participates in their share capital with a significant percentage, companies that belong to parent's main shareholders, companies controlled by members of the BoD or key management personnel, as well as close members of their family.
The Group's and the Company's income and expenses for the first six months of 2021 and 2020 as well as the balances of receivables and payables for the same period that have arisen from related parties' transactions, as defined by IAS 24 are analyzed as follows:
| Income | Expenses & Assets' Purchases | |||
|---|---|---|---|---|
| COMPANY | 01.01‐ | 01.01‐ | 01.01‐ | 01.01‐ |
| 30.06.2021 | 30.06.2020 | 30.06.2021 | 30.06.2020 | |
| OPAP SPORTS LTD | 1,000 | 1,500 | ‐ | ‐ |
| OPAP CYPRUS LTD | 12,448 | 12,395 | 371 | 349 |
| HELLENIC LOTTERIES S.A. | 1,692 | 1,497 | ‐ | ‐ |
| HORSE RACES SINGLE MEMBER S.A. | 410 | 148 | ‐ | 9 |
| TORA DIRECT SINGLE MEMBER S.A. | 234 | 228 | 151 | 154 |
| TORA WALLET SINGLE MEMBER S.A. | 139 | 94 | 365 | 222 |
| NEUROSOFT S.A. | ‐ | ‐ | 3,116 | 4,145 |
| Total | 15,923 | 15,862 | 4,004 | 4,879 |
| Expenses & Assets' Purchases | Income | |||
|---|---|---|---|---|
| GROUP | 01.01‐ 30.06.2021 |
01.01‐ 30.06.2020 |
01.01‐ 30.06.2021 |
01.01‐ 30.06.2020 |
| Other related parties | 2,794 | 1,481 | ‐ | ‐ |
| Total | 2,794 | 1,481 | ‐ | ‐ |
| Receivables (excl. loans) | Payables (excl. loans) | |||
|---|---|---|---|---|
| COMPANY | 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 |
| OPAP SPORTS LTD | 1,000 | ‐ | ‐ | ‐ |
| OPAP CYPRUS LTD | 12,536 | 11,669 | 62 | 63 |
| HELLENIC LOTTERIES S.A. | 3,358 | 3,362 | 12 | 11 |
| HORSE RACES SINGLE MEMBER S.A. |
295 | 300 | 11 | 10 |
| TORA DIRECT SINGLE MEMBER S.A. | 444 | 323 | 208 | 94 |
| TORA WALLET SINGLE MEMBER S.A. |
979 | 661 | 559 | 296 |
| NEUROSOFT S.A. | ‐ | ‐ | 1,221 | 1,295 |
| Total | 18,613 | 16,315 | 2,071 | 1,770 |
| GROUP | Receivables | Payables | |||
|---|---|---|---|---|---|
| 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | ||
| Other related parties | 144 | 144 | 87,443 | 1,402 | |
| Total | 144 | 144 | 87,443 | 1,402 |
| Loans to subsidiaries | ||||
|---|---|---|---|---|
| COMPANY | 30.06.2021 | 31.12.2020 | ||
| HORSE RACES SINGLE MEMBER S.A. |
7,750 | 5,250 | ||
| TORA DIRECT SINGLE MEMBER S.A. | 10,500 | 3,500 | ||
| 18,250 | 8,750 |
The above loans to subsidiaries bear interest rate of 3.50%.
| Loans from subsidiary | ||||
|---|---|---|---|---|
| COMPANY | 30.06.2021 | 31.12.2020 | ||
| OPAP CYPRUS LTD | 20,510 | 20,163 | ||
| 20,510 | 20,163 |
The above loan from subsidiary bears interest rate of 3.50%.
The Company's income from transactions with related parties mainly refers to income from royalties and supporting services, as well as dividend income, while the respective expenses mainly refer to IT related costs. The Group's expenses mostly relate to consulting and royalties fees.
All the above intercompany transactions have been dealt at arm's length.
The transactions and balances with the Board of Directors and the Management personnel are as follows:
| GROUP & COMPANY | ||||
|---|---|---|---|---|
| MANAGEMENT PERSONNEL | 01.01‐ 30.06.2021 |
01.01‐ 30.06.2020 |
||
| Salaries | 1,933 | 2,464 | ||
| Other compensations | 10 | 5 | ||
| Cost of social insurance | 100 | 132 | ||
| Total | 2,042 | 2,601 |
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| BOARD OF DIRECTORS | 01.01‐ | 01.01‐ | 01.01‐ | 01.01‐ | |
| 30.06.2021 | 30.06.2020 | 30.06.2021 | 30.06.2020 | ||
| Salaries | 426 | 442 | 185 | 184 | |
| Cost of social insurance | 46 | 45 | 32 | 32 | |
| Total | 472 | 487 | 217 | 216 |
| GROUP | COMPANY | ||||
|---|---|---|---|---|---|
| Liabilities from BoD compensation & remuneration |
30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| BoD and key management personnel |
225 | 141 | 224 | 139 | |
| Total | 225 | 141 | 224 | 139 |
It should be noted that Group key management personnel is comprised only by the Company's executives. All the above inter‐company transactions and balances have been eliminated in the consolidated financial statements of the Group.
The Group usesthe following hierarchy for determining and disclosing the fair value of financial instruments by valuing technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.
Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data.
During the period there were no transfers between level 1 and level 2 fair value measurement, and no transfers into and out of level 3 fair value measurement.
The following tables compare the carrying amount of the Group's and the Company's financial instruments that are carried at amortized cost to their fair value:
| Carrying value | Fair value | |||
|---|---|---|---|---|
| GROUP | 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 |
| Financial assets | ||||
| Loans receivable | 6,356 | 6,942 | 6,356 | 6,942 |
| Trade receivables | 107,762 | 75,728 | 107,762 | 75,728 |
| Cash and cash equivalents | 617,354 | 506,873 | 617,354 | 506,873 |
| Housing loans to personnel | 141 | 189 | 141 | 189 |
| Guarantee deposits | 2,254 | 1,263 | 2,254 | 1,263 |
| Lease receivable | 164 | 900 | 164 | 900 |
| Investments | 3,629 | 4,629 | 3,629 | 4,629 |
| Financial liabilities | ||||
| Long term borrowings | 1,009,622 | 1,007,830 | 1,026,791 | 1,024,809 |
| Short term borrowings | 34,786 | 33,036 | 33,697 | 32,252 |
| Trade payables (excluding contracts' liabilities) |
123,621 | 143,065 | 123,621 | 143,065 |
| Liabilities arising from derivatives (swap) | 2,124 | 2,748 | 2,124 | 2,748 |
| Lease liabilities | 53,863 | 57,743 | 53,863 | 57,743 |
| Other financial liabilities | 106,713 | 69,925 | 106,713 | 69,925 |
| Carrying value | Fair value | ||||
|---|---|---|---|---|---|
| COMPANY | 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 | |
| Financial assets | |||||
| Loans receivable | 23,121 | 13,918 | 23,121 | 13,918 | |
| Trade receivables | 59,004 | 34,094 | 59,004 | 34,094 | |
| Cash and cash equivalents | 373,348 | 279,491 | 373,348 | 279,491 | |
| Housing loans to personnel | 141 | 189 | 141 | 189 | |
| Guarantee deposits | 1,121 | 1,133 | 1,121 | 1,133 | |
| Lease receivable | 164 | 900 | 164 | 900 | |
| Financial liabilities | |||||
| Long term borrowings | 959,278 | 957,440 | 976,040 | 973,924 | |
| Short term borrowings | 52,968 | 52,692 | 53,945 | 52,040 | |
| Trade payables (excluding contracts' liabilities) |
39,644 | 51,592 | 39,644 | 51,592 | |
| Liabilities arising from derivatives (swap) | 2,124 | 2,748 | 2,124 | 2,748 | |
| Lease liabilities | 24,297 | 27,079 | 24,297 | 27,079 | |
| Other financial liabilities | 35,274 | 17,400 | 35,274 | 17,400 |
The fair value of long‐term and short‐term loans is based on either quoted (unadjusted) prices or on future cash flows discounted (debt principal and interest payments). The fair value of other financial assets and financial liabilities approximates their carrying amounts.
Management continually assesses the possible impact of any changes in the macroeconomic and financial environment in Greece and Cyprus so as to ensure that all necessary actions and measures are taken in order to minimize any impact on the Group's operations. Based on its current assessment, it has concluded that no additional impairment provisions are required with respect to the Group'sfinancial and nonfinancial assets as at 30.06.2021.
Next, we present the main risks and uncertainties which the Group is exposed.
Market risk arises from the possibility that changes in market prices such as exchange rates and interest rates affect the results of the Group and the Company or the value of financial instruments held. The management of market risk consists in the effort of the Group and the Company to control their exposure to acceptable limits.
The Group is exposed to interest rate risk due to the unhedged portion of its outstanding debt. The Group follows all market developments concerning the interest rate environment and acts accordingly. The existing debt facilities, as of 30.06.2021, stand at € 1,044,408 and € 1,012,246 for the Group and the Company respectively, which are analysed as follows:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| Period that ended on | 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 |
| Fixed rate borrowings | 595,927 | 595,215 | 566,214 | 564,966 |
| Floating rate borrowings | 448,481 | 445,651 | 446,032 | 445,166 |
| Total | 1,044,408 | 1,040,866 | 1,012,246 | 1,010,132 |
Floating‐rate borrowings include loan agreements which have been hedged through interest rate swap and represent the 22% (2020: 22%) of total floating‐rate borrowings of the Group and the Company, respectively.
The effect of interest rate swap on the financial statements of the Group and the Company is as follows:
| GROUP | COMPANY | |||
|---|---|---|---|---|
| Interest rate swap | 30.06.2021 | 31.12.2020 | 30.06.2021 | 31.12.2020 |
| Carrying amount (non‐current liability) | 2,124 | 2,748 | 2,124 | 2,748 |
| Notional amount | 100,000 | 100,000 | 100,000 | 100,000 |
| Maturity date | 2023 | 2023 | 2023 | 2023 |
| Hedge ratio | 1:1 | 1:1 | 1:1 | 1:1 |
| Change in fair value of outstanding hedging instruments since 1 January |
624 | (224) | 624 | (224) |
Currency risk is the risk that the fair values of the cash flows of a financial instrument fluctuate due to foreign currency changes. Group operates in Greece and Cyprus, and there are not any agreements with suppliers in place in currencies other than in euro. All revenues from games are in euro, transactions and costs are denominated or based in euro, subsequently, there is no substantial foreign exchange risk. Additionally, the vast majority of Group's cost base is, either proportional to our revenues (i.e. payout to winners, agents commission, vendorsrevenue‐based fees') or to transactions with domestic companies(i.e. IT, marketing).
The primary objective of the Group and the Company, relating to capital management is to ensure and maintain strong credit ability and healthy capital ratios to support the business plans and maximize value for the benefit of shareholders. The Group maintains a solid capital structure, as depicted in the Net Debt/EBITDA ratio of 1.3x as of 30.06.2021. In addition, it retains an efficient cash conversion cycle thus optimizing the operating cash required in order to secure its daily operations, while diversifying its cash reserves so as to achieve flexible working capital management.
The Group manages the capital structure and makes the necessary adjustments to conform to changes in business and economic environment in which they operate. The Group and the Company in order to optimize the capital structure, may adjust the dividend paid to shareholders, return capital to shareholders or issue new shares.
The Group's exposure to credit risk arisesfrom its operating activities and more specifically on the collection process of its franchise‐like model of operation. The above mentioned process leaves the Group exposed to the risk of financial loss if one of its counterparties fails to meet its financial obligations. The carrying value of financial assets at each reporting date is the maximum credit risk to which the Group is exposed. In order to mitigate the aforementioned risk, OPAP established and implements a credit risk management policy. The main characteristics of the policy are:
The Group and the Company have the following types of financial assets that are subject to the expected credit loss model:
While cash and cash equivalents are also subject to the impairment under IFRS 9, the identified impairment loss was not significant due to the fact that the cash and cash equivalents of the Group and the Company are held at reputable European financial institutions.
The Group applies the IFRS 9 simplified approach to measure expected credit losses using a lifetime expected loss allowance for all trade receivables. It is mentioned that the expected credit losses are based on the difference between the cash inflows, which are receivable, and the actual cash inflows that the Group expects to receive. All cash inflows in delay are discounted.
The remaining financial assets are considered to have low credit risk, therefore the Group applies the IFRS 9 general approach and the loss allowance was limited to 12 months expected losses.
The Group manages liquidity risk by performing a detailed forecasting analysis of the inflows and outflows of the Group on a yearly basis.
The aforementioned exercise takes into account:
The Group liquidity position is monitored on a daily basis from the Treasury Department and if needed makes recommendations to the CFO and the Board of Directors to assure no cash shortfalls.
The outbreak of coronavirus (COVID‐19) has affected business and economic activity around the world, including Greece and Cyprus. The rapid evolution of the virus and the subsequent Governments' interventions along with the related restrictions have resulted in the suspension of the Company's and Group's retail operations and significantly impacted the Group's financial results and operational performance in the reporting period, since OPAP's business is heavily weighted towards retail. In Greece, the OPAP's retail network remained closed since the beginning of the year up until 12.04.2021 when the OPAP stores resumed operations and street vendors also restarted the distribution of HELLENIC LOTTERIES SA products(Scratch & Passive lotteries) as of the same date. Moreover, on 24.05.2021 the VLTs operations restarted while, the horseracing facility in Markopoulo Park reopened on 17.05.2021. Finally, OPAP stores in Cyprus remain closed with local lockdowns in total for 41 days. Despite the fact that both, the revenues and the profitability of the OPAP Group were notably affected by the aforementioned retail network closure however, the overall financial performance was restrained by the significant growth of the online along with the increased contribution of STOIXIMAN business (Greek and Cypriot operations).
OPAP S.A. | 112 Athinon Ave, 104 42 Athens, Greece, Tel: +30 (210) 5798800 In this environment, OPAP proceeded with the implementation of a set of decisive actions following Government guidelines in response to coronavirus (COVID‐19) to proactively protect its employees and support its network while at the same time assuring its business continuation. The Group Management implemented work from home for employees. At the same time, business trips were limited to the absolutely necessary and trainings and meetings were carried out remotely. Moreover, the cleaning and disinfection of the facilities, as well as the guidance of the human resources in the field of personal hygiene was intensified.
At this stage, despite the coronavirus (COVID‐19) impact, the Group maintains a strong financial position as the cash and cash equivalents as at 30.06.2021 amount to € 617,354. At the same time, OPAP has implemented a number of measuresto ensure normal operations, invoking business continuity plans where appropriate, safeguarding a quick ramp‐up of the business following the gradual ease of the restrictions.
The Group and the Company Management took limited advantage of government supporting measures, such as tax reliefs or tax offset advantages and rent reduction payments as well, while the Group continues during the first semester 2021 its efforts implemented in 2020 in relation to cost mitigation actions. Finally, for six‐month financial results purposes, the Group managed to secure waivers relating to loan covenants where necessary.
On top to the abovementioned actions, the Group has considered the impact of coronavirus (COVID‐19) on the measurement of non‐financial and financial assets and the related disclosures. In measurement of non‐ financial assets, the Group used adjusted cash flows projections based on the revised financial budgets to calculate the Value in Use (VIU), ie the recoverable amount of the cash generating units. However, the impairment testing, both at Group and Company level, resulted in no impairment in goodwill, investments, intangible assets and Right‐of‐use. The Management reassessed as well the recoverability of cash & cash equivalents, trade and other receivables, including intergroup receivables, taking into account the future economic conditions and proceeded recording respective impairments where considered those receivables are not fully recoverable.
The Management is closely monitoring the developments around the coronavirus (COVID‐19) and is constantly assessing its implications on the Group's performance. It is also taking pre‐emptive actions to ensure the health and safety of its employees and partners, as well as, the continuity of its business as mentioned above. Having satisfactory cash reserves, the Management expects that the Group will be enabled to meet the financing costs and working capital needs, and its ability to continue as going concern will not be affected.
In view of the provisions of L. 4706/2020 on corporate governance, coming into force as of 17.07.2021, the Company proceeded in all the necessary actions in order to comply with the relevant requirements.
After the approval of the Codes of Practice of OPAP CYPRUS by the National Betting Authority and the Minister of Finance, the Coordinating Committee, by virtue of its letter dated on 20.07.2021, sent to OPAP CYPRUS LTD, according to the provision of art. 5(c) Law 52(I), a draft contract (Concession Agreement) to be concluded by the parties. The negotiations of the draft Concession Agreement between OPAP CYPRUS LTD and the Coordinating Committee shall commence on 16.09.2021.
By virtue of the decision of the 21th Annual Ordinary Shareholders General Meeting, held on 17.06.2021, the share capital of the Company would be increased for an amount up to € 7,800 upon issuance of up to 26,000,000 new ordinary, registered, voting shares, for the implementation of the dividend reinvestment program.
The share capital increase was partially subscribed resulting at a final share capital increase of € 2,919 through the issuance of 9,729,566 new ordinary, registered, voting shares of nominal value of € 0.30 (in absolute amount) each. As a result thereof, the share capital of the Company amounted to € 105,347, divided to 351,155,953 shares, of nominal value of € 0.30 each. As the issue price of the Company's new shares amounted to € 11.14 (in absolute amount), the total above par value of the new shares, amounting to € 105,468, was transferred to the account "Share premium".
On 03.08.2021, 9,729,566 new ordinary, registered, voting shares were admitted to trading on Athens Stock Exchange as a result of the reinvestment of the dividend for the financial year 2020 by 2,788 beneficiaries at issue price of € 11.14 (in absolute amount).
The Go‐Live of the online licenses of OPAP S.A. and STOIXIMAN LTD took place on 10.08.2021 and 05.08.2021, respectively.
The Company's Board of Directors decided during its meeting on 07.09.2021 to distribute a gross amount of € 34,933 or € 0.10 (in absolute amount) per share as interim dividend for the fiscal year 2021.
Chairman Board Member and Chief Executive Officer
Board Member and Chief Financial Officer Operational Finance Director
Kamil Ziegler Jan Karas Pavel Mucha Petros Xarchakos
In accordance with the provisions of paragraph 4.1.2 of the Athens Exchange Stock Market regulation, the decision no. 25/17.07.2008 i of the Board of Directors of Athens Stock Exchange and the decision no. 8/754/14.04.2016 of the Board of Directors of Hellenic Capital Markets Commission, it is hereby announced that from the issuance of the Common Bond Loan of two hundred million euros (€ 200,000 th.) with the issuance of the 200,000 bearer bonds with offer price of €1,000 each, that was implemented according to the decision of the meeting of the Company's Board of Directors dated 13.10.2020 and the approval of the content of the Prospectus from the Hellenic Capital Market Commission dated 16.10.2020, a total net amount of two hundred million euros (€200,000 th.) was raised. The cost of the issuance amounted to € 3,350 th. and it was covered in total from own other funds of the Company.
Furthermore, the 200,000 bearer bonds commenced trading in the fixed income securities category of the regulated market of Athens Stock Exchange on 29.10.2020.
The table below presents the specific use of the raised funds per category of use/investment, the timetable of the utilization of the funds raised as well as the use of raised funds until 30.06.2021:
| Use of Proceeds (amounts in thousands of euro) |
2020‐2022 | Amount of Raised Funds utilized during the period 01.01.21‐30.06.21 |
Amount of Raised Funds utilized during the period 27.10.20‐31.12.20 |
Remaining amount to be utilized during the period 01.07.21‐31.12.22 |
|---|---|---|---|---|
| Repayment of loan until 31.12.2020 | 150.000 | ‐ | 150.000 | ‐ |
| Funding needs in Working Capital until 31.12.2022 |
50.000 | 12.648 | ‐ | 37.352 |
| Total | 200.000 | 12.648 | 150.000 | 37.352 |
Chairman Board Member and Chief Executive Officer
Board Member and Chief Financial Officer
Kamil Ziegler Jan Karas Pavel Mucha
This document is the translation of the original report prepared in the Greek language.
Report of factual findings in connection with the "Report on Use of Funds Raised from the issuance of Non-Convertible Bond Loan through payment in cash for the period from 01.01.2021 to 30.06.2021"
To the Board of Directors of "Greek Organization of Football Prognostics S.A"
According to the engagement letter received from the Board of Directors of Greek Organization of Football Prognostics S.A (the ''Company''), we have performed the procedures enumerated below, in accordance with the regulatory framework of the Athens Stock Exchange and the relevant legal framework of the Hellenic Capital Markets Committee, with respect to the "Report on Use of Funds Raised from the issuance of Non-Convertible Bond Loan through payment in cash for the period from 01.01.2021 to 30.06.2021", from the issuance of a Non-Convertible Bond Loan, in 2020.
The Company's Board of Directors is responsible for preparing the aforementioned Report. Our engagement was undertaken in accordance with International Standard on Related Services 4400 applicable to ''agreed-upon-procedures'' engagements. Our responsibility is solely to perform the procedures described below and to report to you our findings.
We performed the following agreed upon-procedures:
PricewaterhouseCoopers S.A., T: +30 210 6874400, www.pwc.gr
Our findings are as follows:
Because the above procedures do not constitute either an audit or a review made in accordance with International Standards on Auditing or International Standards on Review Engagements, we do not express any assurance on the Report beyond what we have referred to above.
Had we performed additional procedures or had we performed an audit or review, in accordance with International Standards on Auditing or International Standards on Review Engagements, other matters might have come to our attention that would have been reported to you.
Our report is addressed exclusively to the Board of Directors of the Company, so that the latter can fulfill its responsibilities in accordance with the legal framework of the Athens Stock Exchange and the relevant regulatory framework of the Hellenic Capital Markets Commission. Consequently, this report is not to be used for any other purpose, since it is limited to what is referred to above and does not extend to the Company's condensed interim financial information for the period ended 30 June 2021, for which we have issued a separate Review Report on 08 September 2021.
Athens, 8 September 2021
The Certified Auditor Accountant
PricewaterhouseCoopers S.A. Certified Auditors – Accountants 268, Kifissias Avenue 152 32 Halandri SOEL Reg. 113
Konstantinos Michalatos SOEL Reg. No 17701
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