Austerity hurts OPAP betting and dividend

Partly state-owned OPAP said on Wednesday it would propose a dividend of 0.72 euros per share versus 1.54 euros paid last year, in line with its guidance.

The dividend payout, roughly 40% of the company's profit, is much lower than what it has paid out since its listing in 2001 and is part of its strategy to save money ahead of a windfall tax expected to weigh on 2012 earnings.

OPAP also wants to use the retained earnings to fund its expansion into video lottery and online gambling.

OPAP is 34% state-owned and one of Greece's most precious assets. The debt-laden government plans to launch a tender to sell a 29% stake before elections set to take place by early May.

Unlike other recession-hit countries where more people turn to lotteries for easy cash, Greeks have been gambling less after a wave of wage cuts and tax hikes prescribed by the country's international lenders.

OPAP's fourth-quarter net profit fell to 128.3 million euros ($169.2 million), broadly in line with an average analysts forecast of 132.7 million euros in a Reuters poll.

Sales dropped 7.9% to 1.16 billion euros, with turnover from its two flagship games, Kino lottery and Stihima sports betting, down 8.2% and 14.6%, respectively.

OPAP paid 850 million euros last year to extend its Greek monopoly and acquire an exclusive licence to operate 35,000 video lottery terminals (VLTs) in the country.

"In 2012 our major objectives are to implement the VLTs strategy and to prepare OPAP's participation in the online market following the appropriate regulatory steps," Chief Executive Officer Yannis Spanoudakis said in a statement.