Announcements

Consolidated unaudited results for Q2 and H1 2015

Posted on 28.07.2015

Key performance indicators of the Group

    H1 2015 H1 2014 H1 2013
Revenues m€ 81.0 72.2 67.4
Gaming tax m€ 15.5 14.3 14.0
EBITDA m€ 18.4 16.7 16.7
EBIT m€ 14.5 12.6 12.5
Net profit m€ 11.8 10.3 9.7
EBITDA margin % 22.7 23.1 24.7
Operating margin % 17.9 17.5 18.5
Net margin % 14.6 14.3 14.3
         
Assets m€ 125.0 115.4 101.0
Equity m€ 106.8 97.8 84.7
ROE % 12.2 10.8 11.5
ROA % 9.8 8.8 9.2
Current ratio times 2.2 2.3 2.4
         
Casinos at end of period # 96 93 83
Casino floor area at end of period m2 30,263 31,060 26,235
Employees # 2,653 2,593 2,561
         
Slot machines at end of period # 3,367 3,337 3,056
Gaming tables at end of period # 185 192 189

 

Key developments of the Group during the first half-year of 2015:

  • The Group’s consolidated sales revenues for H1 2015 amounted to EUR 80.7 million, up 12.1% or EUR 8.7 million y‑o‑y.
  • Gaming revenues accounted for 94.0% (75.9 m€) and other revenues for 6.0% (4.8 m€) of the Group’s consolidated sales revenues for H1 2015. A year before the revenue split was 94.0% (67.7 m€) and 6.0% (4.3 m€), respectively.
  • The Group’s consolidated EBITDA for H1 2015 amounted to EUR 18.4 million, a growth of 10.3% from EUR 16.7 million a year before. The Group’s consolidated operating profit increased EUR 1.9 million (+14.5%) to EUR 14.5 million.
  • The Group’s consolidated net profit attributable to equity holders of the parent company for H1 2015 totalled EUR 11.8 million compared to EUR 10.3 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€ Q2 2015 Q2 2014 Change H1 2015 H1 2014 Change
Estonia 9,068 8,459 7.2% 17,412 16,247 7.2%
Latvia 13,959 11,267 23.9% 26,052 21,682 20.2%
Lithuania 4,923 5,206 -5.4% 10,789 10,705 0.8%
Poland 6,843 5,975 14.5% 13,339 12,193 9.4%
Slovakia 4,076 4,111 -0.9% 7,806 7,736 0.9%
Belarus 203 494 -58.9% 487 966 -49.6%
Italy 2,525 1,673 50.9% 4,825 2,463 95.9%
Total 41,597 37,185 11.9% 80,710 71,992 12.1%

 

Number of casinos by segment:

  30 June 2015 30 June 2014
Estonia 20 18
Latvia 37 38
Lithuania 17 12
Poland 1 2
Slovakia 7 6
Belarus 2 6
Italy 12 11
Total 96 93

 

The Group’s consolidated operating expenses for H1 2015 amounted to EUR 66.5 million, up 11.6% or EUR 6.9 million y-o-y. The growth was highest in personnel expenses (+2.9 m€, +15.0%), gaming tax (+1.2 m€, +8.3%), rent expenses (+0.4 m€, +6.6%) and other services costs (+1.6 m€, +19.0%). Amortisation and depreciation cost declined the most (-0.1 m€, -3.1%). Personnel expenses (22.2 m€) and gaming tax (15.5 m€) represented the largest cost items accounting for 56.6% of total operating expenses.

 

Overview by markets

Estonia

The sales revenues of Estonian segment for H1 2015 amounted to EUR 17.4 million (+1.2 m€, +7.2%), EBITDA to EUR 3.1 million (-0.8 m€, -20.4%) and operating profit to EUR 2.2 million (-0.8 m€, -26.0%). Gaming revenue increased 6.7% y-o-y amounting to EUR 16.6 million.

At the end of H1 2015, there were 20 Olympic casinos with 817 slot machines and 20 gaming tables operating in Estonia. As at 30 June 2015, the Estonian operations employed 518 people.

 

Latvia

The sales revenues of Latvian segment for H1 2015 amounted to EUR 26.1 million (+4.4 m€, +20.2%), EBITDA to EUR 11.8 million (+3.5 m€, +42.2%) and operating profit to EUR 10.3 million (+3.6 m€, +52.5%). Gaming revenue increased 20.5% y‑o‑y amounting to EUR 24.0 million.

At the end of H1 2015, there were 37 Olympic casinos with 1,057 slot machines and 19 gaming tables operating in Latvia. As at 30 June 2015, the Latvian operations employed 684 people.

 

Lithuania

The sales revenues of Lithuanian segment for H1 2015 amounted to EUR 10.8 million (+0.1 m€, +0.8%), EBITDA to EUR 1.6 million (-0.5 m€, -24.1%) and operating profit to EUR 1.1 million (-0.5 m€, -32.6%). Gaming revenue increased 1.1% y-o-y amounting to EUR 10.2 million.

At the end of H1 2015, there were 17 Olympic casinos with 537 slot machines and 64 gaming tables operating in Lithuania. As at 30 June 2015, the Lithuanian operations employed 735 people.

 

Poland

The sales revenues of Polish segment for H1 2015 amounted to EUR 13.3 million (+1.1 m€, +9.4%), EBITDA to EUR 1.7 million (-0.1 m€, -7.2%) and operating profit to EUR 1.3 million (-0.1 m€, -8.4%). Gaming revenue increased 9.4% y-o-y amounting to EUR 13.1 million.

At the end H1 2015, there was 1 Olympic casino with 145 slot machines and 29 gaming tables operating in Poland. As at 30 June 2015, the Polish operations employed 276 people.

 

Slovakia

The sales revenues of Slovak segment for H1 2015 amounted to EUR 7.8 million (+0.1 m€, +0.9%), EBITDA to EUR 0.1 million (-0.5 m€, -86.2%) and operating loss to EUR -0.4 million (-0.5 m€, -1,218.7%). Gaming revenue decreased 0.4% y-o-y amounting to EUR 6.8 million.

At the end of H1 2015, there were 7 Olympic casinos with 297 slot machines and 53 gaming tables operating in Slovakia. As at 30 June 2015, the Slovak operations employed 328 people.

 

Belarus

The sales revenues of Belarusian segment for H1 2015 amounted to EUR 0.5 million (-0.5 m€, -49.5%), EBITDA to EUR -0.2 million (+0.0 m€, -21.0%) and operating loss to EUR -0.2 million (+0.1 m€, -28.0%). Gaming revenue decreased 49.9% y‑o‑y amounting to EUR 0.5 million.

At the end of H1 2015, there were 2 Olympic casinos with 76 slot machines operating in Belarus. As at 30 June 2015, the Belarusian operations employed 54 people.

 

Italy

The sales revenues of Italian segment before deducting the gaming tax of Italy for H1 2015 amounted to EUR 10.6 million (+5.4 m€, +202.1%), EBITDA to EUR 0.4 million (+0.1 m€, +51.1%) and operating profit to EUR 0.2 million (+0.1 m€, +153.6%).

At the end of H1 2015, there were 12 VLT slot casinos with 438 slot machines operating in Italy. As at 30 June 2015, the Italian operations employed 58 people.

 

Financial position

As at 30 June 2015, the total assets of the Group amounted to EUR 125.0 million, up 8.4% or EUR 9.7 million compared to the same period a year ago.

Current assets totalled EUR 37.1 million or 29.7% of total assets, and non-current assets EUR 87.9 million or 70.3% of total assets. The liabilities amounted to EUR 18.2 million and equity to EUR 106.8 million. The largest liabilities included suppliers payables and advances (5.3 m€), tax liabilities (4.6 m€) and payables to employees (4.3 m€).

Investments

In H1 2015, the Group’s expenditures on property, plant and equipment totalled EUR 11.9 million (+2.5 m€, +25.9%), of which EUR 2.9 million was invested into new gaming equipment (-1.3 m€, -30.2%) and EUR 8.8 million (+3.9 m€, +80.3%) into construction of hotel and construction and reconstruction of casinos.

Cash flows

In H1 2015, the Group’s cash flows generated from operating activities amounted to EUR 16.8 million (+3.6 m€, +27.5%) and cash flows used in investing activities to EUR -9.7 million (+3.9 m€). Financing cash flows amounted to EUR -15.4 million (-1.2 m€). Net cash flows totalled EUR -8.2 million (+6.3 m€).

Staff

As at 30 June 2015, the Group employed 2,653 people, up by 60 y-o-y mostly due to expansion in Italy and Lithuania.

In H1 2015, total personnel expenses amounted to EUR 22.2 million (+2.9 m€, +15.0%). In H1 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 434 thousand (EUR 449 thousand in H1 2014) and EUR 74 thousand (EUR 77 thousand in H1 2014), respectively.

 

Consolidated statement of financial position

(in EUR thousands) 30.06.2015 31.12.2014
ASSETS    
Current assets    
Cash and cash equivalents 31,890 40,117
Financial investments 1,048 1,108
Receivables and prepayments 2,775 3,276
Prepaid income tax 235 483
Inventories 1,165 1,163
Assets held for sale 0 1,016
Total current assets 37,113 47,163
     
Non-current assets    
Deferred tax assets 1,457 1,398
Financial investments 4,476 4,277
Other long-term receivables 742 688
Investment property 268 292
Property, plant and equipment 42,376 34,368
Intangible assets 38,612 38,045
Total non-current assets 87,931 79,068
     
TOTAL ASSETS 125,044 126,231
     
     
LIABILITIES AND EQUITY    
Current liabilities    
Borrowings 192 253
Trade and other payables 14,691 13,121
Income tax payable 411 741
Provisions 1,441 1,424
Total current liabilities 16,735 15,539
     
Non-current liabilities    
Borrowings 1,178 1,216
Deferred tax liability 330 272
Total non-current liabilities 1,508 1,488
     
TOTAL LIABILITIES 18,243 17,027
     
EQUITY    
Share capital 60,716 60,716
Share premium 258 258
Statutory reserve capital 3,574 2,495
Other reserves 165 0
Translation reserves -1,173 -1,420
Retained earnings 37,360 41,816
Total equity attributable to equity holders of the parent 100,900 103,865
Non-controlling interest 5,901 5,339
TOTAL EQUITY 106,801 109,204
     
TOTAL LIABILITIES AND EQUITY 125,044 126,231

 

Consolidated statement of comprehensive income

(in EUR thousands) Q2 2015 Q2 2014 H1 2015 H1 2014
         
Income from gaming transactions 39,165 34,977 75,888 67,696
Revenue 2,432 2,208 4,822 4,296
Other income 190 149 275 251
Total revenue and income 41,787 37,334 80,985 72,243
         
Cost of materials, goods and services -884 -794 -1,776 -1,517
Other operating expenses -19,850 -17,926 -38,421 -34,453
Staff costs -11,409 -9,796 -22,189 -19,290
Depreciation, amortisation and impairment -2,095 -2,095 -3,931 -4,055
Other expenses -57 -153 -186 -284
Total operating expenses -34,295 -30,764 -66,503 -59,599
         
Operating profit 7,492 6,570 14,482 12,644
         
Interest income 15 11 31 41
Interest expense -7 -7 -14 -10
Foreign exchange losses 15 -4 15 -6
Other finance income and costs -2 0 -4 -1
Total finance income and costs 21 0 28 24
         
Profit from operating activities 7,513 6,570 14,510 12,668
         
Income tax expense -969 -811 -2,148 -1,773
Net profit for the period 6,544 5,759 12,362 10,895
Attributable to equity holders of the parent company 6,330 5,423 11,800 10,304
Attributable to non-controlling interest 214 336 562 591
         
         
Other comprehensive income        
Currency translation differences -274 -21 247 84
Total comprehensive profit for the period 6,270 5,738 12,609 10,979
Attributable to equity holders of the parent company 6,056 5,402 12,047 10,388
Attributable to non-controlling interest 214 336 562 591
         
         
Basic earnings per share* 4.2 3.6 7.8 6.8
Diluted earnings per share* 4.2 3.6 7.8 6.8

 * 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_Q2_2015_ENG.pdf 

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