Bloomberg News

Opap Slides After Profit Target Misses Estimates: Athens Mover

February 22, 2013

Opap SA (OPAP), Greece’s biggest gambling company, fell the most in four weeks after giving a net income target for this year that trailed analysts’ estimates.

The stock fell 4.9 percent to 6.75 euros, the most since Jan. 24, taking its weekly loss to 12 percent. The shares have advanced 25 percent this year, giving the Athens-based company a market value of 2.15 billion euros ($2.83 billion).

Net income will drop to 116 million euros in 2013 from an estimated 496 million euros last year, according to a presentation by Opap management to investors posted on the company’s website today. That compares with a 151 million-euro average estimate for adjusted net income of seven analysts in a Bloomberg survey. Opap is scheduled to report full-year 2012 results on March 7.

The profit decline is “mainly due to the recently imposed 30 percent taxation on the group’s gaming revenues,” Euroxx Securities analyst Yiannis Sinapis said by phone today. The stock dropped because the new management target is 23 percent below consensus, he said.

The sale of a 33 percent Opap stake held by the Greek state is one of the key state asset sales planned for this year, one of the commitments made by the government to the European Union and International Monetary Fund in return for emergency loans. Greece’s state asset sales fund said Dec. 12 it approved terms for a second and final phase of the tender.

The company forecast net income will climb by a compound average rate of 19 percent a year through 2022 to reach 568 million euros, according to the presentation.

To contact the reporter on this story: Eleni Chrepa in Athens at echrepa@bloomberg.net

To contact the editor responsible for this story: Jerrold Colten at jcolten@bloomberg.net


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