Announcements

Consolidated unaudited results for Q2 and H1 2012

Posted on 30.07.2012

Key performance indicators of the Group

(in millions of euros)

  H1 2012 H1 2011
Revenue 64.1 61.9
EBITDA 17.3 15.0
Operating profit 11.7 5.7
Net profit 10.4 4.4
EBITDA margin 27.0% 24.2%
Operating margin 18.3% 9.3%
Net margin 16.2% 7.2%
ROE 13.8% 5.9%
ROA 9.8% 4.1%
Current ratio 1.9 1.7
     
Number of casinos at year-end 62 63
Casino floor area (m²) at year-end 23,480 23,076
     
Number of slot machines at the period end 2,487 2,441
Number of gaming tables at the period end 183 173

 

Key developments of the Group in H1 2012:

  • The Group’s consolidated net profit totalled EUR 10.4 million. In H1 2011, the Group earned a net profit of EUR 4.4 million.
  • The efficiency of the Group’s business operations improved. In H1 2012, the Group’s income from gaming transactions and revenues totalled EUR 63.6 million, i.e. 10.0% more than compared to H1 2011. The number of casinos in operation declined by 1 year-over-year.
  • At 27 July 2012, the reduction of share capital of Olympic Entertainment Group AS on the basis adopted by resolution of the General Meeting of Shareholders held at 19 April 2012 was entered in the Commercial Register. The Company’s registered share capital was EUR 81,717,932.70 and the new size of share capital is EUR 60,531,802. The share capital is divided into 151,329,505 ordinary shares with the book value of EUR 0.40 each.

In H1 2012, the Group’s consolidated sales revenue totalled EUR 63.6 million and the revenue totalled EUR 64.1 million, which is 3.7% more than the total revenue of EUR 61.9 million earned in H1 2011. The Group’s EBITDA increased from EUR 15.0 million in H1 2011 to EUR 17.3 million in H1 2012. In H1 2012, the operating profit totalled EUR 11.7 million, in H1 2011 the operating profit totalled EUR 5.7 million.

In H1 2012, gaming operations accounted for 92.3% and other revenue 7.7% of the Group’s consolidated revenue, the respective percentages for the H1 2011 were 87.1% and 12.9%.

 

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

 

  Q2 2012 Change Percentage of total Q2 2011 Percentage of total
Estonia 8,180 13.3% 25.6% 7,218 25.1%
Latvia 7,767 13.1% 24.3% 6,865 23.9%
Lithuania 4,466 2.9% 14.0% 4,341 15.1%
Poland 7,138 10.5% 22.3% 6,458 22.5%
Slovakia 3,504 14.2% 11.0% 3,067 10.7%
Belarus 885 13.2% 2.8% 782 2.7%
Romania* 0 -100.0% 0.0% 11 0.0%
Total 31,940 11.1% 100.0% 28,742 100.0%

 

 

  6m 2012 Change Percentage of total 6m 2011 Percentage of total
Estonia 15,794 15.2% 24.8% 13,709 23.7%
Latvia 15,743 18.6% 24.8% 13,276 23.0%
Lithuania 9,360 6.9% 14.7% 8,756 15.1%
Poland 13,376 -4.3% 21.0% 13,981 24.2%
Slovakia 7,759 41.1% 12.2% 5,499 9.5%
Belarus 1,575 -5.1% 2.5% 1,660 2.9%
Romania* 0 -100.0% 0.0% 954 1.6%
Total 63,607 10.0% 100.0% 57,835 100.0%

 

* Romanian income from gaming transactions and revenue were recognised until transfer of control to the new owner at 30 June 2011.

At the end of Q2 2012, the Group had 62 casinos, with the total floor area of 23,480 m². At the end of Q2 2011, the number of the Group’s casinos was 63 and total floor area was 23,076 m².

 

Number of casinos by segment

 

  30.06.2012 30.06.2011
Estonia 18 17
Latvia 21 21
Lithuania 10 11
Poland 4 6
Slovakia 4 3
Belarus 5 5
Total 62 63

 

In H1 2012, the Group’s consolidated operating expenses decreased by 6.6% or EUR 3.7 million as compared to the respective expenses in H1 2011. Depreciation, amortisation and impairment losses decreased the most compared to H1 2011 by EUR 3.7 million. Staff costs with social security taxes increased the most as compared to H1 2011 by EUR 1.0 million and licence fees and gaming taxes by EUR 0.4 million.

Staff costs with social security taxes made up the largest share of the Group’s operating expenses, i.e. EUR 16.0 million, followed by gaming tax expenses of EUR 13.5 million, depreciation, amortisation and impairment losses of EUR 5.6 million, rental expenses of EUR 4.7 million and marketing expenses of EUR 4.3 million.

In H1 2012, the consolidated net profit attributable to equity holders of the parent company totalled EUR 10.4 million. In H1 2011, the consolidated net profit attributable to equity holders of the parent company totalled EUR 4.4 million.

  

Overview by markets

Estonian segment

In H1 2012, the external revenue of the Estonian segment totalled EUR 16.1 million, of which the income from gaming transactions totalled EUR 14.3 million and other revenue and income totalled EUR 1.8 million. The external revenue of the Estonian segment increased by 2.4% compared to H1 2011. The market share of Olympic Casino Eesti AS in the Estonian gaming market was 56% based on Q2 2012 and 55% based on Q2 2011. In H1 2012, the total Estonian gaming market increased by 12.3% as compared to H1 2011.

In H1 2012, the EBITDA of the Estonian segment totalled EUR 3.8 million and the operating profit totalled EUR 2.3 million. In H1 2011, the EBITDA of the Estonian segment totalled EUR 4.3 million and the operating profit totalled EUR 2.3 million.

At the end of Q2 2012, there were 18 Olympic casinos with 739 slot machines and 21 gaming tables in operation in Estonia.

 

Latvian segment

In H1 2012, the external revenue of the Latvian segment totalled EUR 15.9 million, of which the income from gaming transactions totalled EUR 14.5 million and other revenue and income totalled EUR 1.4 million. The external revenue of the Latvian segment increased by 19.5% compared to H1 2011. The market share of Olympic Casino Latvia SIA in the Latvian gaming market was 21% based on Q2 2012 and 20% based on Q2 2011.

In H1 2012, the EBITDA of the Latvian segment totalled EUR 6.9 million and the operating profit totalled EUR 5.6 million. In H1 2011, the EBITDA of the Latvian segment totalled EUR 5.0 million and the operating profit totalled EUR 3.3 million.

At the end of Q2 2012, there were 21 Olympic casinos with 646 slot machines and 25 gaming tables in operation in Latvia.

 

Lithuanian segment

In H1 2012, the external revenue of the Lithuanian segment totalled EUR 9.4 million, of which the income from gaming transactions totalled EUR 8.8 million and other revenue and income totalled EUR 0.6 million. The external revenue of the Lithuanian segment increased by 6.6% compared to H1 2011. The market share of Olympic Casino Group Baltija UAB in the Lithuanian gaming market was 68% based on Q2 2012 and 71% based on Q2 2011.

In H1 2012, the EBITDA of the Lithuanian segment totalled EUR 2.1 million and the operating profit totalled EUR 1.3 million. In H1 2011, the EBITDA of the Lithuanian segment totalled EUR 1.9 million and the operating profit totalled EUR 0.8 million.

At the end of Q2 2012, there were 10 Olympic casinos with 350 slot machines and 52 gaming tables in operation in Lithuania.

 

Polish segment

In H1 2012, the external revenue of the Polish segment totalled EUR 13.5 million, of which the income from gaming transactions totalled EUR 13.2 million and other revenue and income totalled EUR 0.3 million. The external revenue of the Polish segment decreased by 15.7% compared to H1 2011.

In H1 2012, the EBITDA of the Polish segment totalled EUR 2.3 million and the operating profit totalled EUR 1.0 million. In H1 2011, the EBITDA of the Polish segment totalled EUR 3.3 million and the operating profit totalled EUR 1.2 million.

At the end of Q2 2012, there were 4 Olympic casinos with 306 slot machines and 41 gaming tables in operation in Poland.

 

Slovak segment

In H1 2012, the external revenue of the Slovak segment totalled EUR 7.8 million, of which the income from gaming transactions totalled EUR 7.1 million and other revenue and income totalled EUR 0.7 million. The external revenue of the Slovak segment increased by 41.1% compared to H1 2011.

In H1 2012, the EBITDA of the Slovak segment totalled EUR 1.6 million and the operating profit totalled EUR 1.0 million. In H1 2011, the EBITDA of the Slovak segment totalled EUR 1.1 million and the operating profit totalled EUR 0.6 million.

At the end of Q2 2012, there were 4 Olympic casinos with 218 slot machines and 44 gaming tables in operation in Slovakia.

 

Belarusian segment

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

In H1 2012, the external revenue of the Belarusian segment totalled EUR 1.6 million, of which the income from gaming transactions totalled EUR 1.5 million and other revenue and income totalled EUR 0.1 million. The external revenue of the Belarusian segment decreased by 3.4% compared to H1 2011.

In H1 2012, the EBITDA of the Belarusian segment totalled EUR 0.6 million and the operating profit totalled EUR 0.5 million. In H1 2011, the EBITDA of the Belarusian segment totalled EUR 0.3 million and the operating loss totalled EUR 0.1 million.

At the end of Q2 2012, there were 5 Olympic casinos with 228 slot machines in operation in Belarus.

 

Romanian segment

Olympic Entertainment Group AS signed share purchase agreement on 30 April 2011 with an Israeli entrepreneur for selling all the shares in Romanian subsidiaries Olympic Casino Bucharest S.R.L, Muntenia Food and Beverage S.R.L. and Olympic Exchange S.R.L. As of 30 June 2011 shares of Romanian subsidiaries have been registered to the buyer.

 

Financial position

At 30 June 2012, the consolidated balance sheet total of the Group was EUR 109.9 million (31 December 2011: EUR 101.0 million). The balance sheet total increased by 8.8% in H1 2012.

Current assets totalled EUR 57.1 million or 52.0% of total assets, and non-current assets totalled EUR 52.8 million or 48.0% of total assets. At the balance sheet date, the liabilities totalled EUR 31.8 million and the equity totalled EUR 78.1 million. The largest liability items included payables to the shareholders from the reduction of share capital in the amount of EUR 15.2 million, borrowings of EUR 4.7 million, tax liabilities of EUR 3.9 million and payables to employees of EUR 2.9 million.

 

Investments

In H1 2012, the Group’s expenditures on property, plant and equipment totalled EUR 3.6 million, of which EUR 2.4 million was spent on construction and reconstruction of casinos and EUR 1.2 million on new gaming equipment.

In H1 2011, expenditures on property, plant and equipment totalled EUR 0.9 million.

 

Cash flows

In H1 2012, the Group’s cash flows generated from operating activities totalled EUR 14.0 million. Cash flows used in investing activities totalled EUR 5.5 million and cash flows used in financing activities totalled EUR 1.6 million. Net cash flows totalled EUR 6.9 million.

In H1 2011, the Group’s cash flows generated from operating activities totalled EUR 14.2 million. Cash flows used in investing activities totalled EUR 0.8 million and cash flows used in financing activities totalled EUR 1.6 million. Net cash flows totalled EUR 11.9 million.

 

Staff

At 30 June 2012, the Group employed 2,349 people (31 December 2011: 2,336): 530 in Estonia, 492 in Latvia, 613 in Lithuania, 389 in Poland, 222 in Slovakia and 103 in Belarus.

In H1 2012, employee wages and salaries including social security taxes totalled EUR 16.0 million (H1 2011: EUR 15.1 million). In H1 2012, 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 0.47 million (H1 2011: EUR 0.36 million) and EUR 0.08 million (H1 2011: EUR 0.08 million), respectively.

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

 

  30.06.2012 31.12.2011
ASSETS    
Current assets    
Cash and cash equivalents 40,308 33,413
Financial investments 12,513 9,508
Receivables and prepayments 2,989 2,606
Prepaid income tax 263 397
Inventories 1,023 909
Total current assets 57,096 46,833
     
Non-current assets    
Deferred tax assets 1,136 1,111
Financial investments 2,944 2,937
Other long-term receivables 685 712
Investment property 1,800 1,795
Property, plant and equipment 18,075 19,754
Intangible assets 28,126 27,822
Total non-current assets 52,766 54,131
     
TOTAL ASSETS 109,862 100,964
     
     
LIABILITIES AND EQUITY    
Current liabilities    
Borrowings 3,111 3,113
Trade and other payables 25,310 9,870
Income tax payable 464 1,215
Provisions 1,309 1,881
Total current liabilities 30,194 16,079
     
Non-current liabilities    
Deferred tax liability 23 90
Borrowings 1,582 3,136
Total non-current liabilities 1,605 3,226
     
TOTAL LIABILITIES 31,799 19,305
     
EQUITY    
Share capital 60,532 81,718
Share premium 0 14,535
Statutory reserve capital 0 2,470
Other reserves 94 53
Translation reserves -1,079 -1,776
Retained earnings / accumulated losses 13,487 -19,930
Total equity attributable to equity holders of the parent 73,034 77,070
Non-controlling interest 5,029 4,589
TOTAL EQUITY 78,063 81,659
     
TOTAL LIABILITIES AND EQUITY 109,862 100,964

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

  Q2 2012 Q2 2011 6m 2012 6m 2011
Continuing operations        
Income from gaming transactions 29,625 26,701 59,221 53,050
Revenue 2,315 2,030 4,386 3,831
Other income 39 1,990 523 4,011
Total revenue and income 31,979 30,721 64,130 60,892
         
Cost of materials, goods and services -692 -671 -1,356 -1,306
Other operating expenses -14,652 -14,088 -29,297 -28,267
Staff costs -7,996 -7,217 -16,032 -14,373
Depreciation, amortisation and impairment -2,667 -3,605 -5,567 -7,791
Other expenses -48 -660 -157 -986
Total operating expenses -26,055 -26,241 -52,409 -52,723
         
Operating profit 5,924 4,480 11,721 8,169
         
Interest income 80 78 154 153
Interest expense -48 -117 -103 -244
Foreign exchange gains (losses) -31 98 -45 114
Other finance income and costs 237 -3 523 -5
Total finance income and costs 238 56 529 18
         
Profit from operating activities 6,162 4,536 12,250 8,187
         
Income tax expense -737 -604 -1,441 -957
Net profit for the period from continuing operations 5,425 3,932 10,809 7,230
         
Net profit (loss) for the period from discontinued operations 0 634 0 -2,462
         
Net profit for the period 5,425 4,566 10,809 4,768
Attributable to equity holders of the parent company 5,236 4,245 10,359 4,427
Attributable to non-controlling interest 189 321 450 341
         
         
Other comprehensive income        
Currency translation differences        
Continuing operations 0 -291 0 -187
Discontinued operations -171 -388 697 -718
Total comprehensive profit for the period 5,254 3,887 11,506 3,863
Attributable to equity holders of the parent company 5,065 3,566 11,056 3,522
Attributable to non-controlling interest 189 321 450 341
         
         
Basic earnings per share* 3.5 2.8 6.8 2.9
From continuing operations 3.5 2.4 6.8 4.5
From discontinuing operations 0.0 0.4 0.0 -1.6
         
Diluted earnings per share* 3.5 2.8 6.8 2.9
From continuing operations 3.5 2.4 6.8 4.5
From discontinuing operations 0.0 0.4 0.0 -1.6

     * euro cents

 

For further information, please contact:

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


Olympic_interim_Q2_2012_ENG.pdf       

« Back to list