Announcements

Consolidated unaudited results for Q1 2013

Posted on 29.04.2013

Key performance indicators of the Group

(in millions of euros)

  Q1 2013 Q1 2012 Q1 2011
Revenue 33.3 32.2 31.1
EBITDA 8.2 8.7 6.3
Operating profit 6.1 5.8 0.6
Net profit 4.6 5.1 0.2
EBITDA margin 24.8% 27.1% 20.1%
Operating margin 18.4% 18.0% 2.0%
Net margin 13.8% 15.9% 0.6%
ROE 5.1% 6.4% 0.2%
ROA 4.1% 4.9% 0.2%
Current ratio 3.6 2.2 2.9
       
Number of casinos at year-end 66 61 65
Casino floor area (m²) at year-end 25,232 23,418 24,658
       
Number of slot machines at the period end 2,693 2,446 2,494
Number of gaming tables at the period end 184 183 184

 

Underlying formulas:

  • EBITDA = earnings before financial expenses, taxes, depreciation and amortisation and impairment losses
  • Operating profit = profit before financial expenses and taxes
  • Net profit = net profit for the period less non-controlling interests
  • EBITDA margin = EBITDA / revenue
  • Operating margin = operating profit / revenue
  • Net margin = net profit / revenue
  • ROE = net profit / average total equity attributable to the shareholders of the parent company
  • ROA = net profit / average total assets
  • Current ratio = current assets / current liabilities

 

Key developments of the Group during the Q1 of 2013:

  • The Group’s consolidated net profit for Q1 2013 totalled EUR 4.6 million compared to EUR 5.1 million in Q1 2012.
  • In Q1 of 2013, the Group’s income from gaming transactions and revenues totalled EUR 33.1 million, up 4.4% year-over-year. The number of casinos in operation increased by 5 year-over-year.
  • On 11 March the subsidiary Olympic Casino Eesti AS of Olympic Entertainment Group AS acquired a 100% shareholding in Siquia Holding B.V. registered in the Netherlands.
  • On 11 March 2013 Olympic Entertainment Group AS established and registered the companies Gametech Services Ltd and Brandhouse Ltd in Jersey. The aim of establishing the subsidiaries is to create a legal platform for the expansion of the Group’s activities in markets related to remote gambling.
  • At the annual general meeting of the shareholders held on 18 April 2013 it was decided to pay a dividend in the total amount of 15,132,950.50 euros, which shall be paid to the shareholders on 15 May 2013.

In Q1 2013, the Group’s consolidated sales revenue totalled EUR 33.1 million and the total revenue totalled EUR 33.3 million, up 3.5% compared to the total revenue of EUR 32.2 million earned in Q1 2012. The Group’s EBITDA decreased from EUR 8.7 million in Q1 2012 to EUR 8.2 million in Q1 2013. In Q1 2013 the operating profit totalled EUR 6.1 million, in Q1 2012 the operating profit totalled EUR 5.8 million.

In Q1 2013, gaming operations accounted for 92.8% and other revenue 7.2% of the Group’s consolidated revenue, the respective percentages for Q1 2012 were 92.1% and 7.9%.

 

Total external income from gaming transactions and revenue (EUR thousands):

  Q1 2013 Change Percentage of total Q1 2012 Percentage of total
Estonia 8,108 6.5% 24.5% 7,614 24.0%
Latvia 8,030 0.7% 24.3% 7,976 25.2%
Lithuania 5,130 4.8% 15.5% 4,894 15.5%
Poland 6,282 0.7% 19.0% 6,238 19.7%
Slovakia 3,919 -7.9% 11.9% 4,255 13.4%
Belarus 691 0.1% 2.1% 690 2.2%
Italy 899 - 2.7% 0 0.0%
Total 33,059 4.4% 100.0% 31,667 100.0%

 

At the end of Q1 2013, the Group had 66 casinos, with the total floor area of 25,232 m². At the end of Q1 2012, the number of the Group’s casinos was 61 and total floor area was 23,418 m².

 

Number of casinos by segment

  31 March 2013 31 March 2012
Estonia 18 17
Latvia 21 21
Lithuania 12 10
Poland 3 4
Slovakia 5 4
Belarus 5 5
Italy 2 -
Total 66 61

 

In Q1 2013, the Group’s consolidated operating expenses increased by 3.0% or EUR 0.8 million compared to Q1 2012. Compared to Q1 2012 the highest increase was in rental expenses (up EUR 0.7 million) while staff costs including social security taxes increased EUR 0.3 million and marketing expenses EUR 0.3 million. Depreciation, amortisation and impairment losses decreased the most compared to Q1 2012 by EUR 0.8 million.

Staff costs including social security taxes made up the largest share of the Group’s operating expenses, i.e. EUR 8.3 million, followed by gaming tax expenses of EUR 6.8 million, rental expenses EUR 3.1 million, marketing expenses of EUR 2.4 million and depreciation, amortisation and impairment losses of EUR 2.1 million.

In Q1 2013, the consolidated net profit attributable to equity holders of the parent company totalled EUR 4.6 million. In Q1 2012, the consolidated net profit attributable to equity holders of the parent company totalled EUR 5.1 million.

 

Overview by markets

Estonian segment

In Q1 2013, the external revenue of the Estonian segment totalled EUR 8.2 million, of which the income from gaming transactions totalled EUR 7.5 million and other revenue and income totalled EUR 0.5 million. The external revenue of the Estonian segment increased by 4.9% compared to the Q1 2012. The market share of Olympic Casino Eesti AS in the Estonian gaming market was 54% in Q1 2013 and 54% in Q1 2012. In Q1 2013, the total Estonian gaming market increased by 2.5% as compared to the Q1 2012.

In Q1 2013, EBITDA of the Estonian segment totalled EUR 1.8 million and the operating profit totalled EUR 1.4 million. In Q1 2012, EBITDA of the Estonian segment totalled EUR 1.8 million and the operating profit totalled EUR 1.1 million.

At the end of Q1 2013, there were 18 Olympic casinos with 739 slot machines and 20 gaming tables operating in Estonia.

 

Latvian segment

In Q1 2013, the external revenue of the Latvian segment totalled EUR 8.1 million, of which the income from gaming transactions totalled EUR 7.3 million and other revenue and income totalled EUR 0.8 million. The external revenue of the Latvian segment was at the same level compared to the Q1 2012. The market share of Olympic Casino Latvia SIA in the Latvian gaming market was 20% in Q1 2013 and 20% in Q1 2012. In Q1 2013, the total Latvian gaming market increased by 2.9% as compared to the Q1 2012.

In Q1 2013, EBITDA of the Latvian segment totalled EUR 3.4 million and the operating profit totalled EUR 2.8 million. In Q1 2012, EBITDA of the Latvian segment totalled EUR 3.6 million and the operating profit totalled EUR 2.9 million.

At the end of Q1 2013, there were 21 Olympic casinos with 673 slot machines and 18 gaming tables operating in Latvia.

 

Lithuanian segment

In Q1 2013, the external revenue of the Lithuanian segment totalled EUR 5.1 million, of which the income from gaming transactions totalled EUR 4.8 million and other revenue and income totalled EUR 0.3 million. The external revenue of the Lithuanian segment increased by 4.4% compared to the Q1 2012. The market share of Olympic Casino Group Baltija UAB in the Lithuanian gaming market was 69% in Q1 2013 and 68% in Q1 2012. In Q1 2013, the total Lithuanian gaming market increased by 4.0% as compared to the Q1 2012.

In Q1 2013, EBITDA of the Lithuanian segment totalled EUR 1.2 million and the operating profit totalled EUR 0.9 million. In Q1 2012, EBITDA of the Lithuanian segment totalled EUR 1.1 million and the operating profit totalled EUR 0.7 million.

At the end of Q1 2013, there were 12 Olympic casinos with 414 slot machines and 59 gaming tables operating in Lithuania.

 

Polish segment

In Q1 2013, the external revenue of the Polish segment totalled EUR 6.3 million, of which the income from gaming transactions totalled EUR 6.2 million and other revenue and income totalled EUR 0.1 million. The external revenue of the Polish segment decreased by 0.5% compared to the Q1 2012.

In Q1 2013, EBITDA of the Polish segment totalled EUR 1.1 million and the operating profit totalled EUR 0.7 million. In Q1 2012, EBITDA of the Polish segment totalled EUR 0.9 million and the operating profit totalled EUR 0.2 million.

At the end of Q1 2013, there were 3 Olympic casinos with 266 slot machines and 37 gaming tables operating in Poland.

 

Slovak segment

In Q1 2013, the external revenue of the Slovak segment totalled EUR 3.9 million, of which the income from gaming transactions totalled EUR 3.6 million and other revenue and income totalled EUR 0.3 million. The external revenue of the Slovak segment decreased by 7.8% compared to the Q1 2012.

In Q1 2013, EBITDA of the Slovak segment totalled EUR 0.6 million and the operating profit totalled EUR 0.3 million. In Q1 2012, EBITDA of the Slovak segment totalled EUR 1.1 million and the operating profit totalled EUR 0.8 million.

At the end of Q1 2013, there were 5 Olympic casinos with 263 slot machines and 50 gaming tables operating in Slovakia.


Belarusian segment

In this interim financial statements the Belarusian segment is regarded as a hyperinflationary economy that is subject to the accounting policies of IAS 29.

In Q1 2013, the external revenue of the Belarusian segment totalled EUR 0.7 million, of which the income from gaming transactions totalled EUR 0.7 million and other revenue and income totalled EUR 0.0 million. The external revenue of the Belarusian segment was at the same level compared to Q1 2012.

In Q1 2013, EBITDA of the Belarusian segment totalled EUR 0.1 million and the operating profit totalled EUR 0.1 million. In Q1 2012, EBITDA of the Belarusian segment totalled EUR 0.2 million and the operating profit totalled EUR 0.1 million.

At the end of Q1 2013, there were 5 Olympic casinos with 226 slot machines operating in Belarus.

 

Italian segment

In Q1 2013, the external revenue of the Italian segment before deducting the gaming taxes of Italy totalled EUR 1.9 million. In Q1 2013, EBITDA of the Italian segment totalled EUR 0.1 million and the operating loss totalled EUR 0.0 million.

At the end of Q1 2013, there were 2 VLT slot casinos under the brand Slottery with 112 gaming machines operating in Italy.

 

Financial position

As at 31 March 2013, the total assets of the Group amounted to EUR 113.2 million (31 December 2012: EUR 109.2 million), up 3.6% during the Q1 2013.

Current assets totalled EUR 55.3 million or 48.9% of total assets, and non-current assets totalled EUR 57.9 million or 51.1% of total assets. At the balance sheet date, the liabilities totalled EUR 15.8 million and the equity totalled EUR 97.3 million. The largest liability items included tax liabilities of EUR 4.5 million, payables to employees of EUR 3.5 million and payables to suppliers of EUR 3.3 million.

 

Investments

In Q1 2013, the Group’s expenditures on property, plant and equipment totalled EUR 3.6 million, of which EUR 2.3 million was spent on new gaming equipment and EUR 1.2 million on construction and reconstruction of casinos.

In Q1 2012, expenditures on property, plant and equipment totalled EUR 1.4 million.

 

Cash flows

In Q1 2013, the Group’s cash flows generated from operating activities totalled EUR 4.6 million. Cash flows from investing activities totalled EUR 6.8 million and cash flows used in financing activities totalled EUR 0.1 million. Net cash flows totalled EUR 11.3 million.

In Q1 2012, the Group’s cash flows generated from operating activities totalled EUR 8.3 million. Cash flows from investing activities totalled EUR 1.6 million and cash flows used in financing activities totalled EUR 0.8 million. Net cash flows totalled EUR 9.2 million.

 

Staff

As at 31 March 2013, the Group employed 2,388 people (31 December 2012: 2,277): 524 in Estonia, 493 in Latvia, 640 in Lithuania, 355 in Poland, 268 in Slovakia, 101 in Belarus and 7 in Italy.

In Q1 2013, employee wages and salaries including social security taxes totalled EUR 8.3 million (Q1 2012: EUR 8.0 million). In Q1 2013, the members of the Management Board and Supervisory Board of all Group entities were paid remuneration and benefits including social security taxes in the amount of EUR 222 thousand (Q1 2012: EUR 213 thousand) and EUR 39 thousand (Q1 2012: EUR 39 thousand), respectively.

 

 

Consolidated statement of financial position 

  31.12.2013 31.12.2012
ASSETS    
Current assets    
Cash and cash equivalents 47,301 35,973
Financial investments 2,031 13,773
Receivables and prepayments 4,717 2,730
Prepaid income tax 259 280
Inventories 1,007 1,036
Total current assets 55,315 53,792
     
Non-current assets    
Deferred tax assets 1,019 1,038
Financial investments 3,401 2,035
Other long-term receivables 731 712
Investment property 1,785 1,785
Property, plant and equipment 21,008 19,611
Intangible assets 29,921 30,226
Total non-current assets 57,865 55,407
     
TOTAL ASSETS 113,180 109,199
     
     
LIABILITIES AND EQUITY    
Current liabilities    
Borrowings 240 241
Trade and other payables 13,354 12,827
Income tax payable 506 827
Provisions 1,066 1,585
Total current liabilities 15,166 15,480
     
Non-current liabilities    
Deferred tax liability 143 140
Borrowings 539 596
Total non-current liabilities 682 736
     
TOTAL LIABILITIES 15,848 16,216
     
EQUITY    
Share capital 60,532 60,532
Other reserves 164 141
Translation reserves -1,126 -700
Retained earnings 31,907 27,327
Total equity attributable to equity holders of the parent 91,477 87,300
Non-controlling interest 5,855 5,683
TOTAL EQUITY 97,332 92,983
     
TOTAL LIABILITIES AND EQUITY 113,180 109,199

 

 

Consolidated statement of comprehensive income

  Q1 2013 Q1 2012
     
Income from gaming transactions 30,884 29,596
Revenue 2,175 2,071
Other income 225 484
Total revenue and income 33,284 32,151
     
Cost of materials, goods and services -707 -664
Other operating expenses -15,968 -14,644
Staff costs -8,303 -8,035
Depreciation, amortisation and impairment -2,108 -2,901
Other expenses -61 -110
Total operating expenses -27,147 -26,354
     
Operating profit 6,137 5,797
     
Interest income 32 74
Interest expense -4 -55
Foreign exchange gains (losses) 5 -14
Other finance income and costs -621 285
Total finance income and costs -588 290
     
Profit from operating activities 5,549 6,087
     
Income tax expense -797 -703
Net profit for the period 4,752 5,384
Attributable to equity holders of the parent company 4,580 5,122
Attributable to non-controlling interest 172 262
     
     
Other comprehensive income    
     
Currency translation differences -426 868
Total comprehensive profit for the period 4,326 6,252
Attributable to equity holders of the parent company 4,154 5,990
Attributable to non-controlling interest 172 262
     
     
Basic earnings per share* 3.0 3.4
Diluted earnings per share* 3.0 3.4

* euro cents

 

 

Madis Jääger
CEO
Olympic Entertainment Group AS
Tel + 372 667 1250
E-mail madis.jaager@oc.eu
http://www.olympic-casino.com


Olympic_interim_Q1_2013_ENG.pdf

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