OPAP sees flat sales in 2010-CEO

Greek betting group OPAP expects flat sales this year as the economy weakens, the firm's chief executive told the annual shareholders meeting on Monday, causing its shares to trim earlier gains.

"We expect this year's turnover will be at 2009 levels based on actions we have taken," CEO Yannis Spanoudakis told shareholders.

Debt-laden Greece is scrambling to shore up its public finances and fiscal belt-tightening to slash deficits and debt will keep it in recession for a second straight year. The economy is expected to contract about 4 percent. "It was obvious that the company would go through a difficult economic situation this year," Spanoudakis said. "Conditions turned out to be more difficult than we had anticipated."

OPAP, which is 34 percent government owned, had sales of 5.4 billion euros ($6.6 billion) last year. It has a monopoly on sports betting and lotteries in the country until 2020.

Its shares, down 20.2 percent so far this year, were up 5.39 percent at 12.90 euros at 10:32 GMT, after earlier trading as high as 12.97 euros.

"OPAP is well-placed to face the adverse economic conditions and is ready to expand activities, taking part in the opening up of the gaming market planned by the government," Spanoudakis said.

Greece plans to deregulate low-price gaming machines to avoid further European Union fines. OPAP is in favour of such a move, provided there will be a well-defined framework on how the market will operate.