Strongest Q1 GGR performance since 2010
Results summary
■
Gross gaming revenues – increased by 5.0%, driven by 58.9% growth in VLTs
Q119 GGR increased 5.0% to €396.0m, helped by a 58.9% increase in VLTs (17.4% of revenues). An improved Kino performance contributed to stable lottery revenues of €191.7m (48.4% of revenues). Betting declined by 5.3% to €101.7m, although it is encouraging that the main Pame Stoixima product has reverted to 1.9% growth, after many quarters of decline. Instants and passives were also weaker, posting a 10.8% decline.
■
New, larger shops are driving growth
During the quarter, the number of OPAP stores in Greece declined from 3,910 to 3,884, which includes 147 new stores. Since the beginning of 2018, OPAP has opened over 650 new stores and average store sizes have increased by 22% since 2015, to 128m2. OPAP has stated that the newer stores perform over 20% better than the previous formats and the average agent’s commission has increased by 4.4% in Q119 vs the prior year.
■
Adjusted EBITDA margin of 25% – helped by cost containment and IFRS 16
Q119 adjusted EBITDA increased by 15.7% to €100.9m, representing a 25.5% margin (vs 23.1% in the prior year). This excludes €10.7m of one-off items, primarily relating to the reversal of a legal provision. The adjusted margin increase was largely attributable to IT cost containment, although there was also a €2m positive contribution from lower rental costs (due to IFRS 16).
■
Dividends – now with a scrip option
OPAP’s dividend policy is to pay out the ‘bulk’ of FCF as dividends and it has recently announced a five-year scrip dividend programme (2019–23), such that shareholders will have the option to receive the total dividend in cash or to reinvest their selected amount into new shares. The election period for FY18’s final dividend is between 28 June and 11 July. We would expect about half of shareholders to elect a scrip and we will adjust our figures once the final results are announced.
■
Forecasts – broadly unchanged
Management has stated that it is well placed to deliver another positive year in FY19 and, apart from IFRS 16 adjustments, we are leaving our headline forecasts broadly unchanged. Within the revenue mix, a slightly lower Instant & Passives is offset by growth in VLTs and stability in the core Lottery business. As detailed below, our forecasts assume that the VLT roll-out programme will be resumed in the near future (hence no change to numbers) and that the Stoiximan acquisition (which is still pending regulatory approval) is fully consolidated from H219 onwards (€60m GGR for H219).
Exhibit 1: Estimate changes
|
Revenue (GGR) (€m) |
EBITDA (€m) |
Adjusted EPS (€) |
|
Old |
New |
% chg. |
Old |
New |
% chg. |
Old |
New |
% chg. |
2019e |
1,704.2 |
1,701.8 |
(0.1) |
407.8 |
413.6 |
1.4 |
0.62 |
0.61 |
(1.6) |
2020e |
1,867.2 |
1,865.1 |
(0.1) |
451.6 |
461.2 |
2.1 |
0.70 |
0.68 |
(2.8) |
Source: OPAP, Edison Investment Research
Lottery (48.4% of GGR): 1.6% increase
Lottery GGR increased by 1.6% to €191.7 in Q119, helped by Kino side bets and increased Joker revenues. Looking ahead, the introduction of online products should help to mitigate the substitution from VLTs. Joker online was launched in March 2019 and has c 75,000 registrations to date, with online penetration already at 2%. Kino online and Lotto online should follow later in FY19, pending regulation. We continue to forecast a 2% increase in lottery GGR for FY19.
Betting (25.7% of GGR): 5.3% decline
Betting GGR declined by 5.3% to €101.7m vs Q118. This was slightly disappointing, although better than the 11.4% decline in Q418. The decline was driven by a maturing Virtuals business and management has stated that the core Pame Stoixima product has reverted to positive growth of 1.9%, due to an increased number of self-service betting terminals (SSBTs) and more live betting. These have successfully modernised the offer and should enhance growth going forward. In terms of wagers, SSBTs comprised 15.3% of total wagers (vs 6.7% in the prior year) and 28% of total live betting wagers. Live betting grew 27% y-o-y and comprised 36% of total wagers. Online comprised 9% of wagers and 2% of GGR, as win margins are typically lower for online.
There are no major competitions (eg World Cup) in 2019 and, despite the improvement in Pame Stoixima, we continue to forecast a 3% revenue decline in FY19, returning to 5% growth in FY20, as the new online offering begins to gain traction.
Instant & Passives (8.5% of GGR), 10.8% decline
GGR in this division declined by 10.8% to €33.7m, due to weakness in both instants and scratch. Management has stated that this performance is expected to normalise, but we now forecast a 3% decline for this division for FY19.
VLTs (17.4% of GGR): Roll-out temporarily suspended
At end Q119, OPAP operated 19,965 VLTs in 364 Play Gaming Halls and 1,955 agencies. There were c 20,000 VLTs operational at 5 June 2019 but, following a procedural situation, the roll-out of the last c 5,000 VLTs is currently on hold. The procedural delay relating to the final roll-out does not affect the legislative framework or the exclusive contract, and while the matter is being discussed, OPAP is continuing to plan for the final expansion and management is hopeful that the roll-out will be resumed in the near term. This is in line with our forecasts, although there is clearly a risk that there may be a delay or finite end to the roll-out plan.
VLT GGR increased by 58.9% to €68.9m, although GGR/VLT/day has declined to €41 vs €46 in the previous period (note that Q119 includes almost double the number of machines compared to the previous year). Momentum is expected to pick up with a new VLT jackpot offering (from April 2019) and we forecast broadly stable GGR per machine going forward.
Exhibit 2: Divisional summary
|
2014 |
2015 |
2016 |
2017 |
2018 |
2019e |
2020e |
2021e |
Lotteries |
817.3 |
829.9 |
841.3 |
818.0 |
779.9 |
795.5 |
803.5 |
811.5 |
Sports Betting |
456.3 |
411.9 |
397.2 |
421.1 |
406.2 |
394.1 |
413.8 |
426.2 |
Instant and Passives |
104.1 |
157.9 |
159.1 |
158.9 |
152.2 |
147.6 |
147.5 |
147.5 |
VLTS |
0.0 |
0.0 |
0.0 |
57.6 |
208.7 |
304.6 |
350.3 |
367.9 |
Stoiximan |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
60.0 |
150.0 |
165.0 |
Gross Gaming Revenues |
1,377.7 |
1,399.7 |
1,397.6 |
1,455.5 |
1,547.0 |
1,701.8 |
1,865.1 |
1,918.0 |
GGR Contribution and other levies |
(404.5) |
(412.0) |
(466.7) |
(482.6) |
(507.1) |
(553.2) |
(609.2) |
(626.7) |
% GGR |
-29% |
-29% |
-33% |
-33% |
-33% |
-33% |
-33% |
-33% |
NGR |
973.1 |
987.7 |
930.8 |
972.9 |
1,039.9 |
1,148.7 |
1,255.9 |
1,291.3 |
Agents Commission |
(359.7) |
(362.4) |
(358.4) |
(369.9) |
(381.1) |
(403.1) |
(419.7) |
(428.8) |
% of NGR |
-37% |
-37% |
-39% |
-38% |
-37% |
-35% |
-33% |
-33% |
Other NGR related commission |
0.0 |
0.0 |
(26.3) |
(38.3) |
(53.0) |
(65.2) |
(71.7) |
(74.4) |
% of NGR |
0% |
0% |
-3% |
-4% |
-5% |
-6% |
-6% |
-6% |
Lottery |
375.3 |
380.7 |
345.7 |
337.7 |
330.3 |
337.6 |
341.8 |
345.3 |
Sports Betting |
193.3 |
176.5 |
147.1 |
155.2 |
159.2 |
157.1 |
165.2 |
170.2 |
Instant and Passives |
46.7 |
69.5 |
54.7 |
54.8 |
51.5 |
49.9 |
50.1 |
50.1 |
VLTs |
0.0 |
0.0 |
0.0 |
18.4 |
66.2 |
98.1 |
112.8 |
118.4 |
Other |
(1.8) |
(1.4) |
(1.4) |
(1.4) |
(1.4) |
(1.4) |
(1.4) |
(1.4) |
Stoiximan |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
39.0 |
96.0 |
105.6 |
Gross profit from gaming operations |
613.5 |
625.3 |
546.2 |
564.7 |
605.9 |
680.3 |
764.6 |
788.2 |
Total gross profit |
613.5 |
625.3 |
570.1 |
592.6 |
642.7 |
718.9 |
805.1 |
832.6 |
Payroll |
(58.6) |
(46.1) |
(56.2) |
(63.8) |
(76.1) |
(79.9) |
(91.8) |
(93.7) |
% NGR |
-6% |
-5% |
-6% |
-7% |
-7% |
-7% |
-7% |
-7% |
Marketing |
(78.9) |
(69.5) |
(65.9) |
(67.4) |
(65.8) |
(79.0) |
(90.9) |
(92.7) |
% of NGR |
-8% |
-7% |
-7% |
-7% |
-6% |
-7% |
-7% |
-7% |
Other operating expenses |
(129.5) |
(132.7) |
(140.4) |
(155.0) |
(147.2) |
(146.5) |
(161.2) |
(162.8) |
% NGR |
-13% |
-13% |
-15% |
-16% |
-14% |
-13% |
-13% |
-13% |
Adjusted EBITDA |
346.5 |
377.1 |
307.5 |
306.5 |
353.6 |
413.6 |
461.2 |
483.5 |
EBITDA margin |
25% |
27% |
22% |
21% |
23% |
24% |
25% |
25% |
Source: OPAP, Edison Investment Research
Cash flow and balance sheet
The business model is very cash generative, given the franchise model, the limited working capital risk and the fact that all licence payments have been made.
■
Capex: the 2017–19 investment programme (technology, slot machines, SSBTs) is coming to an end. Q119 capex of €3m was lower than we expected, but management continues to guide to capex of c €30m in FY19 and €15–25m in FY20.
■
Net debt: Q119 net debt of €410.5m compares to €459.0m at FY18 and equates to 1.1x net debt/LTM EBITDA and 17.4x interest cover. For FY19, our forecasts include an additional €100m debt for the Stoiximan acquisition (after a €48m net payment in December 2018) and, assuming no special dividends, the net debt level goes to €512.7m in FY19. Once the results of the scrip programme have been announced, the net debt level will very likely decrease further (50% would be about €100m) and we will amend our forecasts at that stage.
Exhibit 3: Financial summary
|
|
€m |
2014 |
2015 |
2016 |
2017 |
2018 |
2019e |
2020e |
2021e |
31-December |
|
|
ISA |
ISA |
ISA |
ISA |
ISA |
ISA |
ISA |
ISA |
INCOME STATEMENT |
|
|
|
|
|
|
|
|
|
|
GGR |
|
|
1,377.7 |
1,399.7 |
1,397.6 |
1,455.5 |
1,547.0 |
1,701.8 |
1,865.1 |
1,918.0 |
NGR |
|
|
973.1 |
987.7 |
930.8 |
972.9 |
1,039.9 |
1,148.7 |
1,255.9 |
1,291.3 |
Cost of Sales |
|
|
(764.2) |
(774.3) |
(827.5) |
(862.9) |
(904.3) |
(982.9) |
(1,060.1) |
(1,085.4) |
Gross Profit |
|
|
613.5 |
625.3 |
570.1 |
592.6 |
642.7 |
718.9 |
805.1 |
832.6 |
EBITDA |
|
|
346.5 |
377.1 |
307.5 |
306.5 |
353.6 |
413.6 |
461.2 |
483.5 |
Normalised operating profit |
|
|
289.6 |
318.1 |
252.4 |
218.8 |
258.4 |
301.8 |
341.1 |
361.6 |
Impairments |
|
|
7.5 |
(14.1) |
0.0 |
(2.7) |
(17.5) |
0.0 |
0.0 |
0.0 |
Exceptionals |
|
|
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
10.7 |
0.0 |
0.0 |
Share-based payments |
|
|
(0.9) |
(1.2) |
(3.1) |
(1.5) |
(1.6) |
(1.6) |
(1.6) |
(1.6) |
Reported operating profit |
|
|
296.2 |
302.8 |
249.3 |
214.6 |
239.3 |
310.9 |
339.5 |
360.0 |
Net Interest |
|
|
1.6 |
(4.7) |
(13.3) |
(21.1) |
(23.5) |
(25.2) |
(26.5) |
(25.5) |
Joint ventures & associates (post tax) |
|
|
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
3.0 |
0.0 |
0.0 |
Other |
|
|
7.8 |
1.5 |
1.0 |
(0.3) |
0.0 |
0.0 |
0.0 |
0.0 |
Profit Before Tax (norm) |
|
|
299.0 |
314.9 |
240.0 |
197.5 |
234.9 |
279.5 |
314.6 |
336.1 |
Profit Before Tax (reported) |
|
|
305.6 |
299.6 |
236.9 |
193.2 |
215.9 |
288.7 |
313.1 |
334.5 |
Reported tax |
|
|
(106.4) |
(89.7) |
(64.1) |
(61.6) |
(70.6) |
(83.7) |
(90.8) |
(97.0) |
Profit After Tax (norm) |
|
|
212.3 |
223.6 |
170.4 |
140.2 |
166.8 |
198.5 |
223.4 |
238.6 |
Profit After Tax (reported) |
|
|
199.2 |
209.9 |
172.9 |
131.6 |
145.3 |
204.9 |
222.3 |
237.5 |
Minority interests |
|
|
(4.2) |
0.8 |
(2.6) |
(5.4) |
(2.0) |
(4.8) |
(7.3) |
(7.9) |
Discontinued operations |
|
|
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
Net income (normalised) |
|
|
208.1 |
224.4 |
167.8 |
134.8 |
164.8 |
193.7 |
216.1 |
230.7 |
Net income (reported) |
|
|
195.0 |
210.7 |
170.2 |
126.2 |
143.3 |
200.2 |
215.0 |
229.6 |
|
|
|
|
|
|
|
|
|
|
|
Basic average number of shares outstanding (m) |
|
319 |
319 |
319 |
318 |
318 |
319 |
319 |
319 |
EPS - basic normalised (€) |
|
|
0.65 |
0.70 |
0.53 |
0.42 |
0.52 |
0.61 |
0.68 |
0.72 |
EPS - diluted normalised (€) |
|
|
0.65 |
0.70 |
0.53 |
0.42 |
0.52 |
0.61 |
0.68 |
0.72 |
EPS - basic reported (€) |
|
|
0.61 |
0.66 |
0.53 |
0.40 |
0.45 |
0.63 |
0.67 |
0.72 |
Dividend (€) |
|
|
0.70 |
0.40 |
1.29 |
1.10 |
0.70 |
0.75 |
0.88 |
0.93 |
|
|
|
|
|
|
|
|
|
|
|
Revenue growth (%) |
|
|
|
1.6 |
(-0.2) |
4.1 |
6.3 |
10.0 |
9.6 |
2.8 |
Gross Margin (%) |
|
|
44.5 |
44.7 |
40.8 |
40.7 |
41.5 |
42.2 |
43.2 |
43.4 |
EBITDA Margin (%) |
|
|
25.2 |
26.9 |
22.0 |
21.1 |
22.9 |
24.3 |
24.7 |
25.2 |
Normalised Operating Margin |
|
|
21.0 |
22.7 |
18.1 |
15.0 |
16.7 |
17.7 |
18.3 |
18.9 |
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET |
|
|
|
|
|
|
|
|
|
|
Fixed Assets |
|
|
1,343.4 |
1,318.9 |
1,330.3 |
1,356.5 |
1,368.7 |
1,519.3 |
1,417.6 |
1,314.1 |
Intangible Assets |
|
|
1,284.2 |
1,237.2 |
1,231.0 |
1,218.5 |
1,157.2 |
1,209.1 |
1,127.6 |
1,044.4 |
Tangible Assets |
|
|
44.2 |
56.2 |
67.6 |
109.3 |
111.5 |
126.2 |
106.0 |
85.7 |
Investments & other |
|
|
15.0 |
25.5 |
31.7 |
28.7 |
100.0 |
184.0 |
184.0 |
184.0 |
Current Assets |
|
|
409.4 |
389.9 |
437.4 |
440.4 |
381.2 |
447.5 |
525.5 |
610.2 |
Stocks |
|
|
3.0 |
4.2 |
12.5 |
7.9 |
10.7 |
20.7 |
20.7 |
20.7 |
Debtors |
|
|
92.3 |
55.2 |
80.6 |
127.8 |
137.4 |
142.4 |
147.4 |
152.4 |
Cash & cash equivalents |
|
|
297.4 |
301.7 |
273.5 |
246.1 |
191.5 |
237.7 |
310.7 |
390.4 |
Other |
|
|
16.7 |
28.8 |
70.8 |
58.5 |
41.7 |
46.7 |
46.7 |
46.7 |
Current Liabilities |
|
|
(457.9) |
(325.0) |
(390.2) |
(482.0) |
(295.0) |
(290.0) |
(280.0) |
(270.0) |
Creditors |
|
|
(170.4) |
(127.1) |
(149.3) |
(173.9) |
(176.7) |
(166.7) |
(156.7) |
(146.7) |
Tax and social security |
|
|
(178.2) |
(129.9) |
(55.5) |
(89.8) |
(73.1) |
(78.1) |
(78.1) |
(78.1) |
Short term borrowings |
|
|
(0.0) |
(32.1) |
(118.7) |
(169.2) |
(0.2) |
(0.2) |
(0.2) |
(0.2) |
Other |
|
|
(109.3) |
(35.9) |
(66.7) |
(49.2) |
(45.0) |
(45.0) |
(45.0) |
(45.0) |
Long Term Liabilities |
|
|
(59.8) |
(181.0) |
(305.3) |
(556.7) |
(695.4) |
(879.4) |
(879.4) |
(879.4) |
Long term borrowings |
|
|
0.0 |
(115.0) |
(263.0) |
(513.1) |
(650.3) |
(750.3) |
(750.3) |
(750.3) |
Other long-term liabilities |
|
|
(59.8) |
(66.0) |
(42.3) |
(43.6) |
(45.1) |
(129.1) |
(129.1) |
(129.1) |
Net Assets |
|
|
1,235.1 |
1,202.8 |
1,072.2 |
758.2 |
759.5 |
797.4 |
783.7 |
774.9 |
Minority interests |
|
|
(67.4) |
(41.0) |
(37.0) |
(43.4) |
(36.8) |
(38.0) |
(42.0) |
(44.0) |
Shareholders' equity |
|
|
1,167.7 |
1,161.8 |
1,035.3 |
714.8 |
722.8 |
759.4 |
741.7 |
730.9 |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOW |
|
|
|
|
|
|
|
|
|
|
Op Cash Flow before WC and tax |
|
|
347.4 |
378.3 |
310.7 |
308.0 |
355.2 |
415.1 |
462.8 |
485.1 |
Working capital |
|
|
7.0 |
(41.0) |
(71.9) |
(9.2) |
(25.0) |
(15.0) |
(15.0) |
(15.0) |
Exceptional & other |
|
|
1.0 |
9.1 |
(12.4) |
(0.4) |
1.1 |
0.0 |
0.0 |
0.0 |
Tax |
|
|
(68.8) |
(142.5) |
(116.9) |
(31.4) |
(51.7) |
(73.7) |
(80.8) |
(87.0) |
Net operating cash flow |
|
|
286.6 |
203.9 |
109.4 |
266.9 |
279.6 |
326.4 |
367.0 |
383.1 |
Capex |
|
|
(18.6) |
(39.6) |
(42.9) |
(96.3) |
(51.9) |
(30.0) |
(20.0) |
(20.0) |
Acquisitions/disposals |
|
|
(18.6) |
(0.8) |
(0.0) |
(31.5) |
(47.9) |
(96.9) |
0.0 |
0.0 |
Net interest |
|
|
1.6 |
(4.2) |
(11.9) |
(19.6) |
(24.6) |
(25.2) |
(26.5) |
(25.5) |
Equity financing |
|
|
(8.3) |
(24.2) |
(11.9) |
(1.8) |
(5.5) |
0.0 |
0.0 |
0.0 |
Dividends |
|
|
(79.8) |
(277.3) |
(292.8) |
(446.1) |
(154.0) |
(223.3) |
(239.8) |
(250.0) |
Other |
|
|
48.1 |
(0.7) |
(12.7) |
0.3 |
(18.6) |
(4.8) |
(7.3) |
(7.9) |
Net Cash Flow |
|
|
211.0 |
(142.9) |
(262.8) |
(328.0) |
(22.8) |
(53.8) |
73.5 |
79.7 |
Opening net debt/(cash) |
|
|
(86.4) |
(297.4) |
(154.5) |
108.3 |
436.2 |
459.0 |
512.7 |
439.3 |
FX |
|
|
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
Other non-cash movements |
|
|
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
0.0 |
Closing net debt/(cash) |
|
|
(297.4) |
(154.5) |
108.3 |
436.2 |
459.0 |
512.7 |
439.3 |
359.6 |
Source: Company data, Edison Investment Research
General disclaimer and copyright This report has been commissioned by OPAP and prepared and issued by Edison, in consideration of a fee payable by OPAP. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services. Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note. No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors. Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest. Copyright: Copyright 2019 Edison Investment Research Limited (Edison). All rights reserved FTSE International Limited (“FTSE”) © FTSE 2019. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.
Australia Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd who holds an Australian Financial Services Licence (Number: 427484). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.
New Zealand The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.
United Kingdom This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document. This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.
United States The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. |
Frankfurt +49 (0)69 78 8076 960 Schumannstrasse 34b 60325 Frankfurt Germany |
London +44 (0)20 3077 5700 280 High Holborn London, WC1V 7EE United Kingdom |
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Frankfurt +49 (0)69 78 8076 960 Schumannstrasse 34b 60325 Frankfurt Germany |
London +44 (0)20 3077 5700 280 High Holborn London, WC1V 7EE United Kingdom |
New York +1 646 653 7026 1,185 Avenue of the Americas 3rd Floor, New York, NY 10036 United States of America |
Sydney +61 (0)2 8249 8342 Level 4, Office 1205 95 Pitt Street, Sydney NSW 2000, Australia |
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General disclaimer and copyright This report has been commissioned by OPAP and prepared and issued by Edison, in consideration of a fee payable by OPAP. Edison Investment Research standard fees are £49,500 pa for the production and broad dissemination of a detailed note (Outlook) following by regular (typically quarterly) update notes. Fees are paid upfront in cash without recourse. Edison may seek additional fees for the provision of roadshows and related IR services for the client but does not get remunerated for any investment banking services. We never take payment in stock, options or warrants for any of our services. Accuracy of content: All information used in the publication of this report has been compiled from publicly available sources that are believed to be reliable, however we do not guarantee the accuracy or completeness of this report and have not sought for this information to be independently verified. Opinions contained in this report represent those of the research department of Edison at the time of publication. Forward-looking information or statements in this report contain information that is based on assumptions, forecasts of future results, estimates of amounts not yet determinable, and therefore involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of their subject matter to be materially different from current expectations. Exclusion of Liability: To the fullest extent allowed by law, Edison shall not be liable for any direct, indirect or consequential losses, loss of profits, damages, costs or expenses incurred or suffered by you arising out or in connection with the access to, use of or reliance on any information contained on this note. No personalised advice: The information that we provide should not be construed in any manner whatsoever as, personalised advice. Also, the information provided by us should not be construed by any subscriber or prospective subscriber as Edison’s solicitation to effect, or attempt to effect, any transaction in a security. The securities described in the report may not be eligible for sale in all jurisdictions or to certain categories of investors. Investment in securities mentioned: Edison has a restrictive policy relating to personal dealing and conflicts of interest. Edison Group does not conduct any investment business and, accordingly, does not itself hold any positions in the securities mentioned in this report. However, the respective directors, officers, employees and contractors of Edison may have a position in any or related securities mentioned in this report, subject to Edison's policies on personal dealing and conflicts of interest. Copyright: Copyright 2019 Edison Investment Research Limited (Edison). All rights reserved FTSE International Limited (“FTSE”) © FTSE 2019. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under license. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent.
Australia Edison Investment Research Pty Ltd (Edison AU) is the Australian subsidiary of Edison. Edison AU is a Corporate Authorised Representative (1252501) of Myonlineadvisers Pty Ltd who holds an Australian Financial Services Licence (Number: 427484). This research is issued in Australia by Edison AU and any access to it, is intended only for "wholesale clients" within the meaning of the Corporations Act 2001 of Australia. Any advice given by Edison AU is general advice only and does not take into account your personal circumstances, needs or objectives. You should, before acting on this advice, consider the appropriateness of the advice, having regard to your objectives, financial situation and needs. If our advice relates to the acquisition, or possible acquisition, of a particular financial product you should read any relevant Product Disclosure Statement or like instrument.
New Zealand The research in this document is intended for New Zealand resident professional financial advisers or brokers (for use in their roles as financial advisers or brokers) and habitual investors who are “wholesale clients” for the purpose of the Financial Advisers Act 2008 (FAA) (as described in sections 5(c) (1)(a), (b) and (c) of the FAA). This is not a solicitation or inducement to buy, sell, subscribe, or underwrite any securities mentioned or in the topic of this document. For the purpose of the FAA, the content of this report is of a general nature, is intended as a source of general information only and is not intended to constitute a recommendation or opinion in relation to acquiring or disposing (including refraining from acquiring or disposing) of securities. The distribution of this document is not a “personalised service” and, to the extent that it contains any financial advice, is intended only as a “class service” provided by Edison within the meaning of the FAA (i.e. without taking into account the particular financial situation or goals of any person). As such, it should not be relied upon in making an investment decision.
United Kingdom This document is prepared and provided by Edison for information purposes only and should not be construed as an offer or solicitation for investment in any securities mentioned or in the topic of this document. A marketing communication under FCA Rules, this document has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and is not subject to any prohibition on dealing ahead of the dissemination of investment research. This Communication is being distributed in the United Kingdom and is directed only at (i) persons having professional experience in matters relating to investments, i.e. investment professionals within the meaning of Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "FPO") (ii) high net-worth companies, unincorporated associations or other bodies within the meaning of Article 49 of the FPO and (iii) persons to whom it is otherwise lawful to distribute it. The investment or investment activity to which this document relates is available only to such persons. It is not intended that this document be distributed or passed on, directly or indirectly, to any other class of persons and in any event and under no circumstances should persons of any other description rely on or act upon the contents of this document. This Communication is being supplied to you solely for your information and may not be reproduced by, further distributed to or published in whole or in part by, any other person.
United States The Investment Research is a publication distributed in the United States by Edison Investment Research, Inc. Edison Investment Research, Inc. is registered as an investment adviser with the Securities and Exchange Commission. Edison relies upon the "publishers' exclusion" from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. This report is a bona fide publication of general and regular circulation offering impersonal investment-related advice, not tailored to a specific investment portfolio or the needs of current and/or prospective subscribers. As such, Edison does not offer or provide personal advice and the research provided is for informational purposes only. No mention of a particular security in this report constitutes a recommendation to buy, sell or hold that or any security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. |
Frankfurt +49 (0)69 78 8076 960 Schumannstrasse 34b 60325 Frankfurt Germany |
London +44 (0)20 3077 5700 280 High Holborn London, WC1V 7EE United Kingdom |
New York +1 646 653 7026 1,185 Avenue of the Americas 3rd Floor, New York, NY 10036 United States of America |
Sydney +61 (0)2 8249 8342 Level 4, Office 1205 95 Pitt Street, Sydney NSW 2000, Australia |
Frankfurt +49 (0)69 78 8076 960 Schumannstrasse 34b 60325 Frankfurt Germany |
London +44 (0)20 3077 5700 280 High Holborn London, WC1V 7EE United Kingdom |
New York +1 646 653 7026 1,185 Avenue of the Americas 3rd Floor, New York, NY 10036 United States of America |
Sydney +61 (0)2 8249 8342 Level 4, Office 1205 95 Pitt Street, Sydney NSW 2000, Australia |
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