OPAP - Sequential improvement in Q321

OPAP’s Q321 results showed a strong sequential (quarter-on-quarter) improvement as all verticals were open throughout the period and unaffected by COVID-19-related closures that affected H121. The year-on-year growth in gross gaming revenue (GGR) due to M&A and improvement in online were complemented by ongoing control of operating costs and the income related to the extension of the concession agreement to drive a significant increase in net profit and free cash flow generation and a reduction in the net position. New restrictions introduced by the Greek government to restrict the spread of COVID-19 will hamper GGR growth in Q421, therefore we trim our forecasts for FY21 and assume some continuation of the restrictions in FY22. Our DCF-based valuation reduces to €16.3/share (€16.6 previously).