Announcements

Consolidated unaudited results for Q3 and 9-month period of 2011

Posted on 03.11.2011

Key performance indicators

Discontinued and continuing operations combined (in millions of euros)

 

  9m 2011 9m 2010
Revenue 93.2 81.8
EBITDA 24.0 15.5
Operating profit 11.5 2.1
Net profit 10.0 1.1
EBITDA margin 25.7% 19.0%
Operating margin 12.3% 2.6%
Net margin 10.8% 1.3%
Equity ratio 73.7% 79.4%
     
Number of casinos at period-end 63 64
Casino area (m2) at period-end 23,149 24,988
     
Number of slot machines at period-end 2,447 2,445
Number of gaming tables at period-end 173 170

 

Underlying formulas:

o EBITDA = earnings before financial expenses, taxes, depreciation and amortisation and impairment losses

o Operating profit = profit before financial expenses and taxes

o Net profit = net profit for the period less non-controlling interests

o EBITDA margin = EBITDA / revenue

o Operating margin = operating profit / revenue

o Net margin = net profit / revenue

o Equity ratio = equity / total assets

 

 

Overview of the Group’s key events and developments in the first 9-month period of 2011:

  • In Q3 2011 the consolidated net profit after corporate income tax for the Group totalled 5.6 million euros. In Q3 2010, the Group incurred a net profit of 2.2 million euros.
  • The efficiency of the Group’s business operations improved. In Q3 2011, the Group’s income from gaming transactions and revenues totalled 30.9 million euros, i.e. 7.7% more than for Q3 2010. The number of casinos in operation declined by 1 casino or 1.5% period-over-period.
  • As planned, the Group has increased its market share. At the end of Q3 2011, the Group’s market share was 55% in Estonia, 20% in Latvia and 70% in Lithuania. At the end of Q3 2010, its market share was 52% in Estonia, 20% in Latvia and 68% in Lithuania.
  • 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.
  • On 27 May 2011 and 18 August 2011, the decrease of share capital and the conversion of share capital of Olympic Entertainment Group AS into euros were entered into the Commercial Register based on the resolutions adopted by the General Meeting of Shareholders of the Company held on 5 May 2011. The new amount of the registered share capital of the Company was 90,797,703 euros, which is divided into 151,329,505 ordinary shares with the nominal value of 0.6 euros. According to the resolutions of the General Meeting of Shareholders held on 5 May 2011, the share capital of the Company was reduced by 9,079,770.30 euros from 90,797,703 euros to 81,717,932.70 euros by reducing the calculated value of the shares. The referred resolution entered into force on the day following to the day, when the reduction of the share capital in relation to the conversion into euros and the amendment of the Articles of Association were entered into the Commercial Register, (i.e. on 28 May 2011) pursuant to the resolutions of the General Meeting.

 

The Group’s consolidated sales revenue for the 9 months of 2011 totalled 88.8 million euros and the revenue totalled 93.2 million euros which is 13.9% more than the total revenue of 81.8 million euros earned within the 9 months of 2010. The Group’s EBITDA increased from 15.5 million euros for the 9 months of 2010 to 24.0 million euros for the 9 months of 2011. During 9 months in 2011 operating profit totalled 11.5 million euros; during 9 months in 2010 the operating profit totalled 2.1 million euros.

During 9 months in 2011, gaming operations accounted for 88.5% and other revenue 11.5% of the Group’s consolidated revenue, the respective percentages for the 9 months of 2010 were 92.5% and 7.5%.

External sales revenue by segments, continuing operations

 

(thousands of euros) Q3 2011 Change Percentage Q3 2010 Percentage
Estonia 8,225 12.2% 26.6% 7,330 26.8%
Latvia 7,828 29.7% 25.3% 6,035 22.1%
Lithuania 5,157 20.3% 16.7% 4,287 15.7%
Poland 6,197 -7.1% 20.0% 6,669 24.4%
Slovakia 2,737 24.8% 8.8% 2,193 8.0%
Belarus 799 -3.6% 2.6% 829 3.0%
Total 30,943 13.2% 100.0% 27,343 100.0%

 

 

(thousands of euros) 9m 2011 Change Percentage 9m 2010 Percentage
Estonia 21,933 9.5% 25.0% 20,025 25.5%
Latvia 21,104 22.1% 24.0% 17,278 22.0%
Lithuania 13,914 8.7% 15.8% 12,804 16.3%
Poland 20,178 1.3% 23.0% 19,915 25.3%
Slovakia 8,236 29.9% 9.4% 6,341 8.1%
Belarus 2,459 10.7% 2.8% 2,222 2.8%
Total 87,824 11.8% 100.0% 78,585 100.0%

 

At the end of Q3 2011, the Group had 63 casinos, with the total area of 23,149 m². At the end of Q3 2010, the number of the Group’s casinos was 64, and their total area was 24,988 m².

 

Number of casinos by segment

 

  30.09.2011 30.09.2010
Estonia 17 17
Latvia 21 21
Lithuania 11 10
Poland 6 7
Slovakia 3 2
Belarus 5 5
Romania 0 2
Total 63 64

 

The Group’s consolidated operating expenses before depreciation, amortisation and impairment for the 9 months of 2011 increased by 4.5% or 3.3 million euros as compared to the respective expenses during the 9 months in 2010. Operating licences and gaming taxes increased the most as compared to 2010, 3.2% or 0.6 million euros, staff costs by 3.2% or 0.7 million euros and maintenance costs of gaming areas by 13.1% or 0.4 million euros.

Staff costs with social security taxes made up the largest share of the Group’s operating expenses before depreciation, amortisation and impairment, i.e. 22.4 million euros, followed by gaming tax expenses of 19.2 million euros, rental expenses of 7.2 million euros and marketing expenses of 6.7 million euros.

In 2011, the consolidated net profit after tax for the 9 months totalled 10.0 million euros. In 2010, the consolidated net profit after tax for the 9 months totalled 1.1 million euros.

 

Overview by markets

Estonian segment

External revenue of the Estonian segment for the 9 months of 2011 totalled 23.9 million euros, of which the gaming revenue 19.8 million euros and other income totalled 4.1 million euros. External revenue of the Estonian segment increased by 18.3% compared to the same period last year. The increase in the gaming market in Estonia for the 9 months of 2011 was 3.4% compared to the same period last year. The market share of Olympic Casino Eesti AS on the Estonian gaming market was 55% at end of Q3 2011. At the end of Q3 2010, the market share of Olympic Casino Eesti AS was 52%.

The EBITDA of the Estonian segment for the 9 months of 2011 totalled 6.1 million euros and the operating profit totalled 3.2 million euros. The EBITDA of the Estonian segment for the 9 months of 2010 totalled 3.7 million euros and the operating profit totalled 0.3 million euros.

At the end of Q3 2011, there were 17 Olympic casinos with 698 slot machines and 20 gaming tables operating in Estonia.

 

Latvian segment

The external revenue of the Latvian segment for the 9 months of 2011 totalled 21.1 million euros, of which the gaming revenue 19.3 million euros and other revenue totalled 1.8 million euros. External revenue of the Latvian segment increased by 21.3% compared to the same period last year. The increase in the gaming market in Latvia for the 9 months of 2011 was 15.4% compared to the same period last year. The market share of Olympic Casino Latvia SIA on the Latvian gaming market was 20% at the end of Q3 2011. At the end of Q3 2010, the market share of Olympic Casino Latvia SIA was 20%.

The EBITDA of the Latvian segment for the 9 months of 2011 totalled 8.6 million euros and the operating profit totalled 6.1 million euros. The EBITDA of the Latvian segment for the 9 months of 2010 totalled 5.8 million euros and the operating profit totalled 2.7 million euros.

At the end of Q3 2011, there were 21 Olympic casinos with 646 slot machines and 24 gaming tables operating in Latvia.

 

Lithuanian segment

The external revenue of the Lithuanian segment for the 9 months of 2011 totalled 14.0 million euros, of which the gaming revenue 12.9 million euros and other income totalled 1.1 million euros. External revenue of the Lithuanian segment increased by 9.0% compared to the same period last year. The increase in the gaming market in Lithuania for the 9 months of 2011 was 2.8% compared to the same period last year. The market share of UAB Olympic Casino Group Baltija on the Lithuanian gaming market was 70% at the end of Q3 2011. At the end of Q3 2010, the market share of Olympic Casino Group Baltija UAB was 68%.

The EBITDA of the Lithuanian segment for the 9 months of 2011 totalled 3.3 million euros and the operating profit totalled 1.8 million euros. The EBITDA of the Lithuanian segment for the 9 months of 2010 totalled 2.5 million euros and the operating profit totalled 0.8 million euros.

At the end of Q3 2011, there were 11 Olympic casinos with 376 slot machines and 52 gaming tables operating in Lithuania.

 

Polish segment

The external revenue of the Polish segment for the 9 months of 2011 totalled 22.5 million euros, of which the gaming revenue 19.8 million euros and other income totalled 2.7 million euros. External revenue of the Polish segment increased by 12.8% compared to the same period last year.

The EBITDA of the Polish segment for the 9 months of 2011 totalled 4.7 million euros and the operating profit totalled 1.9 million euros. The EBITDA of the Polish segment for the 9 months of 2010 totalled 2.3 million euros and the operating loss totalled 1.0 million euros.

At the end of Q3 2011, there were 6 Olympic casinos with 353 slot machines and 45 gaming tables operating in Poland.

 

Slovak segment

The external revenue of the Slovak segment for the 9 months of 2011 totalled 8.2 million euros, of which the gaming revenue 7.6 million euros and other income totalled 0.6 million euros. External revenue of the Slovak segment increased by 29.9% compared to the same period last year.

The EBITDA of the Slovak segment for the 9 months of 2011 totalled 1.6 million euros and the operating profit totalled 0.9 million euros. The EBITDA of the Slovak segment for the 9 months of 2010 totalled 1.2 million euros and the operating profit totalled 0.6 million euros.

At the end of Q3 2011, there were 3 Olympic casinos with 141 slot machines and 31 gaming tables operating in Slovakia.

 

Belarusian segment

The external revenue of the Belarusian segment for the 9 months of 2011 totalled 2.5 million euros, of which the gaming revenue 2.3 million euros and other income totalled 0.2 million euros. External revenue of the Belarusian segment increased by 8.4% compared to the same period last year.

The EBITDA of the Belarusian segment for the 9 months of 2011 totalled 0.6 million euros and the operating profit totalled 0.1 million euros. The EBITDA of the Belarusian segment for the 9 months of 2010 totalled 0.6 million euros and the operating loss totalled 0.1 million euros.

At the end of Q3 2011, there were 5 Olympic casinos with 233 slot machines operating 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 September 2011, the consolidated balance sheet total of the Group was 105.3 million euros (31 December 2010: 107.7 million euros). The balance sheet total decreased by 2.2% in 9 months of 2011.

Current assets accounted for 51.2 million euros or 48.6% of total assets and non-current assets for 54.2 million euros or 51.4% of total assets. At the balance sheet date, consolidated liabilities totalled 27.7 million euros and the consolidated equity amounted to 77.6 million euros. The largest liability items included the reduction of share capital liability of 9.2 million euros, borrowings of 7.0 million euros, tax liabilities of 3.8 million euros and payables to employees of 2.5 million euros.

 

Investments

The Group’s expenditures on property, plant and equipment segment for the 9 months of 2011 totalled 2.8 million, of which 2.0 million euros was spent on new gaming equipment, 0.4 million euros was spent on reconstruction of casinos and 0.4 million euros was spent on other property, plant and equipment.

Total expenditures on property, plant and equipment, and intangible assets for the 9 months of 2010 were 4.1 million euros.

 

Cash flows

The Group’s cash flows from operating activities for the 9 months of 2011 totalled 23.4 million euros. Cash flows used in investing activities totalled 9.8 million euros and cash flows used in financing activities totalled 8.3 million euros. Net cash flows totalled 5.3 million euros.

The Group’s cash flows from operating activities for the 9 months of 2010 totalled 12.8 million euros. Cash flows from investing activities totalled 1.3 million euros and cash flows used in financing activities totalled 8.5 million euros. Net cash flows totalled 5.6 million euros.

 

Staff

At 30 September 2011, the Group employed 1,997 people (31 December 2010: 2,115): 434 in Estonia, 441 in Latvia, 530 in Lithuania, 353 in Poland, 170 in Slovakia and 69 in Belarus.

Employee wages and salaries including social security taxes in the Group for the 9 months of 2010 totalled to 22.4 million euros (21.7 million euros last year). The remuneration and benefits of the Group’s Supervisory and Management Board including social security taxes for the 9 months of 2011 totalled 0.26 million euros (0.24 million euros last year).

 

Consolidated statement of financial position (in thousands of euros)

  30.09.2011 31.12.2010
ASSETS    
Current assets    
Cash and cash equivalents 34,459 28,960
Financial investments 11,317 3,937
Receivables and prepayments 3,185 4,959
Prepaid income tax 527 734
Inventories 906 1,416
Non-current assets held for sale 762 1,105
Total current assets 51,156 41,111
     
Non-current assets    
Deferred tax assets 998 1,098
Financial investments 934 927
Other long-term receivables 679 949
Investment property 1,414 1,414
Property, plant and equipment 22,276 33,135
Intangible assets 27,860 29,062
Total non-current assets 54,161 66,585
     
TOTAL ASSETS 105,317 107,696
     
     
LIABILITIES AND EQUITY    
Current liabilities    
Borrowings 3,112 3,109
Trade and other payables 18,628 10,782
Income tax payable 762 833
Provisions 1,138 1,694
Total current liabilities 23,640 16,418
     
Non-current liabilities    
Deferred tax liability 193 313
Borrowings 3,913 6,231
Total non-current liabilities 4,106 6,544
     
TOTAL LIABILITIES 27,746 22,962
     
EQUITY    
Share capital 81,718 96,717
Share premium 14,535 14,535
Statutory reserve capital 2,470 2,413
Translation reserves -1,746 740
Accumulated losses -23,726 -33,703
Total equity attributable to equity holders of the parent 73,251 80,702
Non-controlling interest 4,320 4,032
TOTAL EQUITY 77,571 84,734
     
TOTAL LIABILITIES AND EQUITY 105,317 107,696

 

 

  Consolidated statement of comprehensive income (in thousands of euros)

  Q3 2011 Q3 2010 9m 2011 9m 2010
Continuing operations        
Income from gaming transactions 28,661 25,536 81,711 73,562
Revenue 2,282 1,807 6,113 5,023
Other income 432 151 4,443 459
Total revenue and income 31,375 27,494 92,267 79,044
         
Cost of materials, goods and services -750 -607 -2,057 -1,703
Other operating expenses -13,627 -13,613 -41,893 -40,302
Staff costs -7,345 -6,784 -21,717 -20,850
Depreciation, amortisation and impairment -3,240 -3,966 -11,031 -12,747
Other expenses -678 -134 -1,664 -163
Total operating expenses -25,640 -25,104 -78,362 -75,765
         
Operating profit 5,735 2,390 13,905 3,279
         
Interest income 127 62 280 194
Interest expense -108 -150 -351 -554
Foreign exchange gains (losses) 47 7 160 -15
Other finance income and costs 377 -3 372 -27
Total finance income and costs 443 -84 461 -402
         
Profit from operating activities 6,178 2,306 14,366 2,877
         
Income tax expense -625 -132 -1,582 -419
Net profit for the period from continuing operations 5,553 2,174 12,784 2,458
         
Net profit (loss) for the period from discontinued operations 0 243 -2,462 -1,266
         
Net profit for the period 5,553 2,417 10,322 1,192
Attributable to equity holders of the parent company 5,606 2,205 10,034 1,102
Attributable to non-controlling interest -53 212 288 90
         
         
Other comprehensive income        
Currency translation differences -1,581 515 -2,486 496
Total comprehensive profit for the period 3,972 2,932 7,836 1,688
Attributable to equity holders of the parent company 4,025 2,720 7,548 1,598
Attributable to non-controlling interest -53 212 288 90
         
         
Basic earnings (loss) per share* 3,7 1,5 6,6 0,7
From continuing operations 3,7 1,3 8,2 1,5
From discontinuing operations 0,0 0,2 -1,6 -0,8
         
Diluted earnings (loss) per share* 3,7 1,5 6,6 0,7
From continuing operations 3,7 1,3 8,2 1,5
From discontinuing operations 0,0 0,2 -1,6 -0,8

  * euro cents

 

Additional information:

Madis Jääger
Member of the Board, CFO
Olympic Entertainment Group AS
Ph +372 667 1250
E-mail madis.jaager@oc.eu
http://www.olympic-casino.com

 


Olympic_interim_Q3_2011_ENG.pdf

« Back to list