Players in Greece and Cyprus were able to return to OPAP’s 3,750 shops as of Monday, the company announced – with seated play once again becoming possible as of last Saturday.
During lockdown, players could place bets at the window, but not enter the shop. This has all changed now, and of course OPAP has assured us that the correct social distancing will be maintained in all stores, and the appropriate hygiene measures maintained.
Customers inside the OPAP stores must keep a distance of 1.5 metres between each other. Both customers and employees are advised to wear protective masks.
That may seem a bit dull, but the news didn’t keep the price of OPAP shares from becoming lively. The news lifted OPAP stock on the Athens exchange by 4.3 per cent, bringing the price to €9.341 late on Tuesday as investors bet on improved takings in the next quarter.
This is a change after a long slump for the share price. OPAP shares plunged to €6 per share in March from €12, and then took nearly two months to climb back to €9 in May. OPAP has been, since 2013, a fully private company and so has attracted the increased attention of investors.
Gambling and play stocks were hammered during lockdown.
Surprisingly some online gambling and play firms also suffered, perhaps from consumers’ overall anxiety about spending during chaotic economic conditions.
The UK gaming and gambling company William Hill said its revenues more than halved during the coronavirus lockdown, as the betting company prepares for a staged reopening of its shops.
The bookmaker reported a 57 per cent fall in revenue in the seven weeks to April 28. It said online betting revenues were also down by a fifth during the same period, adding that each month its betting shops were closed cost the company up to £15 million.
OPAP also saw heavy losses during the lockdown period. As a result of is shops being closed, OPAP revealed in April that it expected gross gaming revenue to decline by up to €140 million and earnings by up to €53 million in 2020. There is little doubt that the announcement of Q1 results will show the effects of the crisis.
But the company is set to try to turn things around this year. In April, OPAP’s long-time CEO Damian Cope retired, and a temporary CEO, a veteran of the company, is holding the fort until a permanent replacement is found.
OPAP is patently looking for some dynamic new blood to take on all the challenges that the past year has imposed on the company.
Analysts are bullish on gambling and play stocks, as they expect consumers to seek refreshment and entertainment after the grim lockdown period.
The eventual resumption of sporting events is also set to give these stocks a big boost. Analysts say many of the companies still have substantial liquidity and solid balance sheets, so they may be expected to absorb the losses from lockdown and to move ahead.
