Announcements

Consolidated unaudited results for Q2 and H1 2013

Posted on 29.07.2013

Key performance indicators of the Group

    H1 2013 H1 2012 H1 2011
Revenues m€ 67.4 64.1 61.9
Gaming tax m€ 14.0 13.5 13.1
EBITDA m€ 16.7 17.3 15.0
EBIT m€ 12.5 11.7 5.7
Net profit m€ 9.7 10.4 4.4
EBITDA margin % 24.7 27.0 24.2
Operating margin % 18.5 18.3 9.3
Net margin % 14.3 16.2 7.2
         
Assets m€ 101.0 109.9 108.2
Equity m€ 84.7 78.1 73.6
ROE % 12.5 14.6 5.9
ROA % 9.2 9.5 4.1
Current ratio times 2.4 1.9 1.7
         
Casinos at end of period # 83 62 63
Casino floor area (m2) at end of period m2 26,235 23,480 23,076
Employees # 2,561 2,349 2,004
         
Slot machines at end of period # 3,056 2,487 2,441
Gaming tables at end of period # 189 183 173

 

Key developments of the Group during the first half-year of 2013:

  • The Group’s consolidated sales revenues for H1 2013 amounted to EUR 67.1 million, up 5.6% or EUR 3.5 million y‑o‑y.
  • Gaming revenues accounted for 93.3% (62.6 m€) and other revenues for 6.7% (4.5 m€) of the Group’s consolidated sales revenues for H1 2013. A year before the revenue split was 93.2% and 6.8%, respectively.
  • The Group’s consolidated EBITDA for H1 2013 amounted to EUR 16.7 million, a drop of 3.6% from EUR 17.3 million a year before. At the same time, the Group’s consolidated operating profit increased EUR 0.8 million (+6.4%) to EUR 12.5 million.
  • In H1 2013, the consolidated net profit attributable to equity holders of the parent company totalled EUR 9.7 million compared to EUR 10.4 million a year ago.
  • On 28 July 2013 Siquia Holding B.V, a subsidiary of Olympic Casino Eesti AS, signed a sales-purchase agreement to acquire 100% shareholding in Latvian casino operator Altea SIA. The transaction increased the number of casinos operated in Latvia from existing 21 to 38.
  • As part of the restructuring, Olympic Entertainment Group AS acquired 100% of the shares of the Dutch entity Jessy Investments B.V. and transferred the 100% shareholding in OÜ Fortuna Travel to the acquired entity. In addition, Olympic Entertainment Group AS acquired 100% shareholding in Kesklinna Hotelli OÜ, the share of which was used to increase the share capital of Jessy Investments B.V through non-monetary contribution. The restructuring was completed in June 2013.

 

The Group’s consolidated sales revenues by segments:

‘000€ Q2 2013 Q2 2012 Change H1 2013 H1 2012 Change
Estonia 8,289 8,180 1.3% 16,397 15,794 3.8%
Latvia 8,398 7,767 8.1% 16,428 15,742 4.4%
Lithuania 4,906 4,466 9.9% 10,036 9,359 7.2%
Poland 7,287 7,138 2.1% 13,569 13,376 1.4%
Slovakia 3,787 3,505 8.1% 7,706 7,760 -0.7%
Belarus 563 885 -36.3% 1,254 1,575 -20.4%
Italy 857 - 100.0% 1,757 - 100.0%
Total 34,088 31,940 6.7% 67,147 63,607 5.6%

 

 

Number of casinos by segment:

  30 June 2013 30 June 2012
Estonia 18 18
Latvia 38 21
Lithuania 12 10
Poland 3 4
Slovakia 5 4
Belarus 5 5
Italy 2 -
Total 83 62

 

Overview by markets

Estonia

The sales revenues of Estonian segment for H1 2013 amounted to EUR 16.4 million (+0.6 m€, +3.8%), EBITDA to EUR 3.6 million (-0.2 m€, -4.7%) and operating profit to EUR 2.8 million (+0.5 m€, +22.4%). Gaming revenue increased 4.5% y-o-y amounting to EUR 15.0 million.

The market share of Olympic Casino Eesti AS in the Estonian land-based gaming market was 56% in H1 2013, up 2% y-o-y. Total Estonian gaming market decreased by 1% as compared to the H1 2012.

At the end of H1 2013, there were 18 Olympic casinos with 741 slot machines and 19 gaming tables operating in Estonia. As at 30 June 2013, the Estonian operations employed 536 people.

 

Latvia

The sales revenues of Latvian segment for H1 2013 amounted to EUR 16.4 million (+0.7 m€, +4.4%), EBITDA to EUR 7.1 million (+0.2 m€, +3.4%) and operating profit to EUR 5.9 million (+0.3 m€, +5.0%). Gaming revenue increased 3.9% y-o-y amounting to EUR 15.0 million.

The market share of Olympic Casino Latvia SIA in the Latvian gaming market was 21% in H1 2013 remaining on the same level as year ago. Total Latvian gaming market increased by 2.8% as compared to the H1 2012.

As at the end of H1 2013, there were 38 Olympic casinos with 1,018 slot machines and 18 gaming tables operating in Latvia. Of these, 17 casinos with 345 slot machines were added on 28 June 2013 when the Group acquired 100% shareholding in Latvian casino operator Altea SIA. Out of 17 slot casinos 9 are located in Riga and eight are spread around the country. As at 30 June 2013, there were 652 employees (incl. Altea SIA) in Latvia.

 

Lithuania

The sales revenues of Lithuanian segment for H1 2013 amounted to EUR 10.0 million (+0.7 m€, +7.2%), EBITDA to EUR 2.0 million (-0.2 m€, -8.6%) and operating profit to EUR 1.2 million (-0.1 m€, -9.0%). Gaming revenue increased 7.9% y-o-y amounting to EUR 9.5 million.

The market share of Olympic Casino Group Baltija UAB in the Lithuanian gaming market was 69% in H1 2013, up from 67a year before. Total Lithuanian gaming market increased by 6% as compared to the H1 2012.

As at the end of H1 2013, there were 12 Olympic casinos with 420 slot machines and 62 gaming tables operating in Lithuania. As at 30 June 2013, the Lithuanian operations employed 651 people.

 

Poland

The sales revenues of Polish segment for H1 2013 amounted to EUR 13.6 million (+0.2 m€, +1.4%), EBITDA to EUR 2.7 million (+0.4 m€, +18.1%) and operating profit to EUR 2.0 million (+1.1 m€, +112.8%). Gaming revenue increased 1.6% y-o-y amounting to EUR 13.4 million.

As at the end of H1 2013, there were 3 Olympic casinos with 266 slot machines and 38 gaming tables operating in Poland. As at 30 June 2013, the Polish operations employed 352 people.

 

Slovakia

The sales revenues of Slovak segment for H1 2013 amounted to EUR 7.7 million (-0.05 m€, -0.7%), EBITDA to EUR 1.0 million (-0.6 m€, -36.1%) and operating profit to EUR 0.4 million (-0.6 m€, -59.7%). Gaming revenue decreased 1.9% y-o-y amounting to EUR 6.9 million.

As at the end of H1 2013, there were 5 Olympic casinos with 263 slot machines and 52 gaming tables operating in Slovakia. As at 30 June 2013, The Slovak operations employed 264 people.

 

Belarus

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

The sales revenues of Belarusian segment for H1 2013 amounted to EUR 1.3 million (-0.3 m€, -20.4%), EBITDA to EUR 0.06 million (-0.5 m€, -89.3%) and operating profit to EUR 0.01 million (-0.4 m€, -97.5%). Gaming revenue decreased 19.6% y-o-y amounting to EUR 1.2 million.

As at the end of H1 2013, there were 5 Olympic casinos with 236 slot machines operating in Belarus. As at 30 June 2013, the Belarusian operations employed 99 people.

 

Italy

The sales revenues of Italian segment before deducting the gaming tax of Italy for H1 2013 amounted to EUR 3.7 million, EBITDA to EUR 0.2 million and operating profit to EUR 0.05 million

The Group is operating in Italy since August 2012. As at the end of H1 2013, there were 2 VLT slot casinos with 112 slot machines operating in Italy under the brand of Slottery. As at 30 June 2013, there were 7 employees in Italy.

 

Financial position

As at 30 June 2013, the total assets of the Group amounted to EUR 101.0 million, down 8.1% or EUR 8.9 million compared to the same period a year ago. The decline in total assets was mostly driven by dividend payment in Q1 2013.

Current assets totalled EUR 38.0 million or 37.6% of total assets, and non-current assets EUR 63.0 million or 62.4% of total assets. The liabilities amounted to EUR 16.3 million and equity to EUR 84.7 million. The largest liabilities included suppliers payable (5.1 m€), tax liabilities (3.5 m€) and payables to employees (3.3 m€).

 

Investments

In H1 2013, the Group’s expenditures on property, plant and equipment totalled EUR 6.1 million (+2.5 m€, +68.3%), of which EUR 3.7 million was invested to new gaming equipment (+2.4m€, +194.1%) and EUR 2.4 million (+0.07 m€, +3.1%) to construction and reconstruction of casinos.

 

Cash flows

In H1 2013, the Group’s cash flows generated from operating activities amounted to EUR 10.7 million (-3.3 m€, -23.9%) and cash flows from investing activities to EUR 2.1 million (+7.7 m€). Financing cash flows amounting to EUR -17.8 million (‑16.2 €) were largely impacted by dividend payment in the amount of EUR 17.6 million. Net cash flows totalled EUR ‑4.9 million (-11.9 m€).

 

Staff

As at 30 June 2013, the Group employed 2,561 people, up by 212 y-o-y mostly due to opening new casinos in Lithuania and Slovakia as well as expansion in Latvia.

In H1 2013, total personnel expenses amounted to EUR 16.9 million (+0.9 m€, +5.6%). In H1 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 447 thousand (466 thousand in H1 2012) and EUR 78 thousand (EUR 78 thousand in H1 2012), respectively.

 

Consolidated statement of financial position

  30.06.2013 31.12.2012
ASSETS    
Current assets    
Cash and cash equivalents 30,998 35,973
Financial investments 2,000 13,773
Receivables and prepayments 3,569 2,730
Prepaid income tax 402 280
Inventories 1,006 1,036
Total current assets 37,975 53,792
     
Non-current assets    
Deferred tax assets 1,028 1,038
Financial investments 3,406 2,035
Other long-term receivables 693 712
Investment property 1,785 1,785
Property, plant and equipment 21,702 19,611
Intangible assets 34,378 30,226
Total non-current assets 62,992 55,407
     
TOTAL ASSETS 100,967 109,199
     
     
LIABILITIES AND EQUITY    
Current liabilities    
Borrowings 239 241
Trade and other payables 14,372 12,827
Income tax payable 272 827
Provisions 741 1,585
Total current liabilities 15,624 15,480
     
Non-current liabilities    
Deferred tax liability 154 140
Borrowings 482 596
Total non-current liabilities 636 736
     
TOTAL LIABILITIES 16,260 16,216
     
EQUITY    
Share capital 60,532 60,532
Statutory reserve capital 1,210 0
Other reserves 188 141
Translation reserves -1,552 -700
Retained earnings 20,644 27,327
Total equity attributable to equity holders of the parent 81,022 87,300
Non-controlling interest 3,685 5,683
TOTAL EQUITY 84,707 92,983
     
TOTAL LIABILITIES AND EQUITY 100,967 109,199

 

Consolidated statement of comprehensive income

  Q2 2012 Q2 2011 H1 2012 H1 2011
Continuing operations        
Income from gaming transactions 31,766 29,625 62,650 59,221
Revenue 2,322 2,315 4,497 4,386
Other income 23 39 248 523
Total revenue and income 34,111 31,979 67,395 64,130
         
Cost of materials, goods and services -742 -692 -1,448 -1,356
Other operating expenses -16,278 -14,652 -32,247 -29,297
Staff costs -8,629 -7,996 -16,932 -16,032
Depreciation, amortisation and impairment -2,092 -2,667 -4,200 -5,567
Other expenses -34 -48 -95 -157
Total operating expenses -27,775 -26,055 -54,922 -52,409
         
Operating profit 6,336 5,924 12,473 11,721
         
Interest income 23 80 56 154
Interest expense -4 -48 -9 -103
Foreign exchange gains (losses) -57 -31 -52 -45
Other finance income and costs 0 237 -621 523
Total finance income and costs -38 238 -626 529
         
Profit from operating activities 6,298 6,162 11,847 12,250
         
Income tax expense -891 -737 -1,688 -1,441
Net profit for the period 5,407 5,425 10,159 10,809
Attributable to equity holders of the parent company 5,079 5,236 9,660 10,359
Attributable to non-controlling interest 328 189 499 450
         
         
Other comprehensive income        
Currency translation differences -426 -171 -852 697
Total comprehensive profit for the period 4,981 5,254 9,307 11,506
Attributable to equity holders of the parent company 4,653 5,065 8,808 11,056
Attributable to non-controlling interest 328 189 499 450
         
         
Basic earnings per share* 3.4 3.5 6.4 6.8
Diluted earnings per share* 3.4 3.5 6.4 6.8

 * 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_2013_ENG.pdf 

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