Edison Investment Research Limited
London, UK, 6 May 2022
OPAP (OPAP): Progressing the strategy
OPAP is a listed gaming operator with 100% pre-paid exclusive retail licences, which provide significant barriers to entry and strong recurring cash flow. In recent years OPAP has increased its online presence via a combination of organic growth and M&A, such that it is now the online market leader in Greece and Cyprus. Its Fast Forward strategy aims to grow OPAP’s customer interactions both online and offline while maintaining its leading position in corporate and social responsibility. This will be achieved through a combination of gaming innovation and brand investment, supported by improved technology and better customer relationship management. The key focus in FY21 was beginning the build out of the ‘infrastructure’, which will enable a step up in gaming innovation in the coming year, with management expecting incremental revenue and profits.
The share price has performed very well versus its peers during the last 12 months given OPAP’s improving operational momentum and the attractions of the new dividend policy. It continues to trade at a discount to its European peers, and its attractive dividend policy and cash generation ensure a superior dividend yield. Our DCF-based valuation indicates a fair value of c €18 per share (€16.3 previously).
All reports published by Edison are available to download free of charge from its website
About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached – across institutions, family offices, wealth managers and retail investors – Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.
Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison’s reports are not solicitations to buy or sell any securities.
For more information, please contact Edison:
Russell Pointon +44 (0)20 3077 5700 firstname.lastname@example.org
Sara Welford +44 (0)20 3077 5700 email@example.com
Learn more at www.edisongroup.com and connect with Edison on:
Dissemination of a CORPORATE NEWS, transmitted by EQS Group.