Announcements

Consolidated unaudited results for Q1 2015

Posted on 28.04.2015

Key performance indicators of the Group

    Q1 2015 Q1 2014 Q1 2013
Revenues m€ 39.2 34.9 33.3
Gaming tax m€ 7.5 7.0 6.8
EBITDA m€ 8.8 8.0 8.2
EBIT m€ 7.0 6.1 6.1
Net profit m€ 5.5 4.9 4.6
EBITDA margin % 22.5% 23.0% 24.8%
Operating margin % 17.8% 17.4% 18.4%
Net margin % 14.0% 14.0% 13.8%
         
Assets m€ 135.5 122.3 113.2
Equity m€ 115.6 107.1 97.3
ROE % 5.2% 5.0% 5.1%
ROA % 4.2% 4.2% 4.1%
Current ratio times 2.8 3.5 3.6
         
Casinos at end of period # 96 82 66
Casino floor area at end of period m2 31,603 27,181 25,232
Employees # 2,656 2,505 2,381
         
Slot machines at end of period # 3,425 3,011 2,693
Gaming tables at end of period # 197 191 184

 

Key developments of the Group during the first quarter of 2015:

  • The Group’s consolidated sales revenues for Q1 2015 amounted to EUR 39.1 million, up 12.4% or EUR 4.3 million y‑o‑y.
  • Gaming revenues accounted for 93.9% (36.7 m€) and other revenues for 6.1% (2.4 m€) of the Group’s consolidated sales revenues for Q1 2015. A year before the revenue split was 94.0% (32.7 m€) and 6.0% (2.1 m€), respectively.
  • The Group’s consolidated EBITDA for Q1 2015 amounted to EUR 8.8 million, a growth of 9.9% from EUR 8.0 million a year before. The Group’s consolidated operating profit increased EUR 0.9 million (+15.1%) to EUR 7.0 million.
  • The Group’s consolidated net profit attributable to equity holders of the parent company for Q1 2015 totalled EUR 5.5 million compared to EUR 4.9 million a year ago.
  • Group company Olympic Casino Eesti AS has acquired on 4 March 2015 business activities of two operating casinos from the Estonian casino operator Casino Cleopatra OÜ that increases the number of casinos Group owns in Estonia to 20.
  • On 14 January 2015 Olympic Entertainment Group AS has established subsidiaries OEG Malta Holding Ltd and OEG Malta Gaming Ltd in Malta. OEG Malta subsidiary has concluded an agreement for providing casino management services and related service to Maltese company Casino Malta Limited and associated companies.
  • The general meeting of shareholders held on 16 April 2015 has decided to pay out dividends in amount of EUR 15,179,120.60, that were paid out to shareholders on 4 May 2015.

 

The Group’s consolidated sales revenues by segments:

‘000€ Q1 2015 Q1 2014 Change
Estonia 8,344 7,788 7.1%
Latvia 12,093 10,415 16.1%
Lithuania 5,865 5,499 6.7%
Poland 6,496 6,218 4.5%
Slovakia 3,730 3,625 2.9%
Belarus 285 472 -39.6%
Italy 2,301 790 191.3%
Total 39,114 34,807 12.4%

At the end of March 2015, the Group had 96 casinos with total floor area of 31,603 m² (+4,422 m2).

 

Number of casinos by segment:

  31 March 2015 31 March 2014
Estonia 20 18
Latvia 37 38
Lithuania 16 12
Poland 2 3
Slovakia 7 5
Belarus 2 4
Italy 12 2
Total 96 82

 

The Group’s consolidated operating expenses for Q1 2015 amounted to EUR 32.2 million, up 11.7% or EUR 3.4 million y-o-y. The growth was highest in personnel expenses (+1.3 m€, +13.6%), gaming tax (+0.4 m€, +5.9%), rent expenses (+0.3 m€, +8.8%) and other services costs (+1.1 m€, +27.5%). Amortisation and depreciation cost declined the most (-0.1 m€, -6.4%). Personnel expenses (10.8 m€) and gaming tax (7.5 m€) represented the largest cost items accounting for 56.7% of total operating expenses.

 

Overview by markets

Estonia

The sales revenues of Estonian segment for Q1 2015 amounted to EUR 8.3 million (+0.6 m€, +7.1%), EBITDA to EUR 1.6 million (-0.2 m€, -9.4%) and operating profit to EUR 1.2 million (-0.1 m€, -10.3%). Gaming revenue increased 6.4% y-o-y amounting to EUR 7.9 million.

At the end of March 2015, there were 20 Olympic casinos with 817 slot machines and 19 gaming tables operating in Estonia. As at 31 March 2015, the Estonian operations employed 488 people.

Latvia

The sales revenues of Latvian segment for Q1 2015 amounted to EUR 12.1 million (+1.7 m€, +16.1%), EBITDA to EUR 5.2 million (+1.4 m€, +36.0%) and operating profit to EUR 4.5 million (+1.4 m€, +43.7%). Gaming revenue increased 16.0% y-o-y amounting to EUR 11.1 million.

At the end of March 2015, there were 37 Olympic casinos with 1,056 slot machines and 19 gaming tables operating in Latvia. As at 31 March 2015, the Latvian operations employed 692 people.

Lithuania

The sales revenues of Lithuanian segment for Q1 2015 amounted to EUR 5.9 million (+0.4 m€, +6.7%), EBITDA to EUR 1.2 million (+0.1 m€, +7.1%) and operating profit to EUR 1.0 million (+0.1 m€, +10.5%). Gaming revenue increased 7.9% y-o-y amounting to EUR 5.6 million.

At the end of March 2015, there were 16 Olympic casinos with 519 slot machines and 64 gaming tables operating in Lithuania. As at 31 March 2015, the Lithuanian operations employed 737 people.

Poland

The sales revenues of Polish segment for Q1 2015 amounted to EUR 6.5 million (+0.3 m€, +4.5%), EBITDA to EUR 0.8 million (-0.1 m€, -12.2%) and operating profit to EUR 0.7 million (-0.1 m€, -6.5%). Gaming revenue increased 4.5% y-o-y amounting to EUR 6.4 million.

At the end of March 2015, there were 2 Olympic casinos with 210 slot machines and 42 gaming tables operating in Poland. As at 31 March 2014, the Polish operations employed 306 people.

Slovakia

The sales revenues of Slovak segment for Q1 2015 amounted to EUR 3.7 million (+0.1 m€, +2.9%), EBITDA to EUR -0.1 million (-0.3 m€, -116.6%) and operating loss to EUR -0.3 million (-0.2 m€, -531.6%). Gaming revenue increased 0.7% y-o-y amounting to EUR 3.2 million.

At the end of March 2015, there were 7 Olympic casinos with 292 slot machines and 53 gaming tables operating in Slovakia. As at 31 March 2015, the Slovak operations employed 313 people.

Belarus

The sales revenues of Belarusian segment for Q1 2015 amounted to EUR 0.3 million (-0.2 m€, -39.6%), EBITDA to EUR -0.2 million (-0.1 m€, -174.2%) and operating loss to EUR -0.2 million (-0.1 m€, -145.5%). Gaming revenue decreased 40.3% y‑o‑y amounting to EUR 0.3 million.

At the end of March 2015, there were 2 Olympic casinos with 93 slot machines operating in Belarus. As at 31 March 2015, the Belarusian operations employed 64 people.

Italy

The sales revenues of Italian segment before deducting the gaming tax of Italy for Q1 2015 amounted to EUR 5.0 million (+3.4 m€, +210.1%), EBITDA to EUR 0.2 million (+0.0 m€, +1.7%) and operating profit to EUR 0.1 million (-0.0 m€, -17.1%).

At the end of March 2015, there were 12 VLT slot casinos with 438 slot machines operating in Italy. As at 31 March 2015, the Italian operations employed 56 people.

 

Financial position

As at 31 March 2015, the total assets of the Group amounted to EUR 135.5 million, up 10.8% or EUR 13.2 million compared to the same period a year ago.

Current assets totalled EUR 51.6 million or 38.1% of total assets, and non-current assets EUR 83.9 million or 61.9% of total assets. The liabilities amounted to EUR 19.9 million and equity to EUR 115.6 million. The largest liabilities included suppliers payables and advances (6.2 m€), tax liabilities (5.4 m€) and payables to employees (4.3 m€).

Investments

In the 3 months of 2015, the Group’s expenditures on property, plant and equipment totalled EUR 5.6 million (+2.0 m€, +56.2%), of which EUR 1.1 million was invested into new gaming equipment (-0.4m€, -28.8%) and EUR 4.4 million (+2.5 m€, +129.8%) into construction of hotel and construction and reconstruction of casinos.

Cash flows

In the 3 months of 2015, the Group’s cash flows generated from operating activities amounted to EUR 8.9 million (+3.3 m€, +59.1%) and cash flows used in investing activities to EUR -2.9 million (+2.1 m€). Financing cash flows amounted to EUR -0.2 million (-0.1 m€). Net cash flows totalled EUR 5.8 million (+5.3 m€).

Staff

As at 31 March 2015, the Group employed 2,656 people, up by 151 y-o-y mostly due to expansion in Italy and Lithuania.

In the 3 months of 2015, total personnel expenses amounted to EUR 10.8 million (+1.3 m€, +13.6%). In the 3 months of 2015, 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 230 thousand (EUR 225 thousand in the 3 months of 2014) and EUR 37 thousand (EUR 39 thousand in the 3 months of 2014), respectively.

 

Consolidated statement of financial position

(EUR thousands) 31.03.2015 31.12.2014
ASSETS    
Current assets    
Cash and cash equivalents 45,942 40,117
Financial investments 1,154 1,108
Receivables and prepayments 2,834 3,276
Prepaid income tax 483 483
Inventories 1,203 1,163
Assets held for sale 0 1,016
Total current assets 51,616 47,163
     
Non-current assets    
Deferred tax assets 1,478 1,398
Financial investments 4,406 4,277
Other long-term receivables 723 688
Investment property 292 292
Property, plant and equipment 38,111 34,368
Intangible assets 38,864 38,045
Total non-current assets 83,874 79,068
     
TOTAL ASSETS 135,490 126,231
     
     
LIABILITIES AND EQUITY    
Current liabilities    
Borrowings 253 253
Trade and other payables 16,394 13,121
Income tax payable 708 741
Provisions 1,016 1,424
Total current liabilities 18,371 15,539
     
Non-current liabilities    
Borrowings 1,166 1,216
Deferred tax liability 328 272
Total non-current liabilities 1,494 1,488
     
TOTAL LIABILITIES 19,865 17,027
     
EQUITY    
Share capital 60,716 60,716
Share premium 258 258
Statutory reserve capital 2,495 2,495
Other reserves 82 0
Translation reserves -899 -1,420
Retained earnings 47,286 41,816
Total equity attributable to equity holders of the parent 109,938 103,865
Non-controlling interest 5,687 5,339
TOTAL EQUITY 115,625 109,204
     
TOTAL LIABILITIES AND EQUITY 135,490 126,231

 

Consolidated statement of comprehensive income

(EUR thousands) Q1 2015 Q1 2014
Income from gaming transactions 36,724 32,719
Revenue 2,390 2,088
Other income 85 102
Total revenue and income 39,199 34,909
     
Cost of materials, goods and services -893 -723
Other operating expenses -18,571 -16,527
Staff costs -10,780 -9,494
Depreciation, amortisation and impairment -1,836 -1,960
Other expenses -129 -131
Total operating expenses -32,209 -28,835
     
Operating profit 6,990 6,074
     
Interest income 17 29
Interest expense -7 -3
Foreign exchange losses -1 -1
Other finance income and costs -2 -1
Total finance income and costs 7 24
     
Profit from operating activities 6,997 6,098
     
Income tax expense -1,179 -962
Net profit for the period 5,818 5,136
Attributable to equity holders of the parent company 5,470 4,881
Attributable to non-controlling interest 348 255
     
     
Other comprehensive income    
Currency translation differences 521 106
Total comprehensive profit for the period 6,339 5,242
Attributable to equity holders of the parent company 5,991 4,987
Attributable to non-controlling interest 348 255
     
     
Basic earnings per share* 3.6 3.2
Diluted earnings per share* 3.6 3.2

* 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_2015_ENG.pdf 

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