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OPAP, a Greek company organizing and conducting games of chance witnessed profits dive in the financial year 2017 as escalated revenue was impacted by hiking operating costs, new games, and long-term investments.
The Athens-based firm saw net profit crumble down by 25% irrespective of its GGR elevating by 4% to €1.45bn ($1.78bn).
Net profit was down to €126m, while gross profit from gaming operations was up 3.5% to €564.7m.
However, the costs changed significantly owing to changes in agreements with agents, the introduction of over 10,000 video lottery terminals and commitments to socially responsibility.
OPAP also saw a 69% drop in fourth-quarter net profit to €17.2m, hurt by higher costs for the deployment of new games.
In view of this, OPAP Chief Executive Damian Cope said: “2017 was a particularly busy year in terms of the overall level of change that OPAP underwent. Beginning with the new partnership agreement that we signed with our agents in Q1 we managed to successfully implement a number of new initiatives that will each act as solid foundations for the long–term benefit of the company and ensure the delivery of our 2020 Vision.”
Source: European Gaming Industry News