OPAP net profit boosted by scratch card launch and cost cuts

ATHENS (Reuters) - Greece's OPAP, Europe's second-biggest gambling company by stock market value, has posted a 26 percent rise in third-quarter net profit, helped by a new scratch card and cost cuts. A six-year, austerity-induced recession at home and a hefty levy slapped on gross revenue last year had hurt OPAP in previous years. But cost containment and moves to rejuvenate its offerings are paying off. Net profit rose to 55.9 million euros (44.55 million pounds) from 44.4 million in the same period last year. The figure was at the high end of analysts' forecasts which were in a range of 53.2 million to 56 million according to a recent Reuters poll. The company, which ranks second in the European sector after William Hill Plc, said it would pay an interim dividend of 0.23 euros a share, the first time it has made an interim payout since 2010. Core profit or EBITDA rose 33 percent to 94.2 million euros, helped by a 30 percent annual drop in distribution costs. The launch of a scratch card in May and the rejuvenation of flagship sports betting game Stihima boosted sales, which rose by 19 percent to 1.07 billion euros. OPAP plans to expand into video lotto by rolling out 16,500 machines by the end of next year, a business which analysts say will be the company's growth catalyst in coming years. (Reporting by Angeliki Koutantou; Editing by Deepa Babington and David Holmes)