Announcements

Consolidated unaudited results for Q3 and 9m 2012

Posted on 29.10.2012

Key performance indicators of the Group

(in millions of euros)

  9 m 2012 9 m 2011 9 m 2010
Revenue 98.0 93.2 81.8
EBITDA 27.7 24.0 15.5
Operating profit 19.7 11.5 2.1
Net profit 17.7 10.0 1.1
EBITDA margin 28.3% 25.7% 19.0%
Operating margin 20.1% 12.3% 2.6%
Net margin 18.1% 10.8% 1.3%
ROE 22.4% 13.0% 1.5%
ROA 16.2% 9.4% 1.1%
Current ratio 2.1 2.2 2.5
       
Number of casinos at year-end 62 63 64
Casino floor area (m²) at year-end 23,354 23,149 24,988
       
Number of slot machines at the period end 2,479 2,447 2,445
Number of gaming tables at the period end 182 173 170

  

Key developments of the Group during the 9-month period of 2012:

  • The Group’s consolidated net profit totalled EUR 17.7 million. During the 9-month period of 2011, the Group earned a net profit of EUR 10.0 million.
  • The efficiency of the Group’s business operations improved. During the 9-month period of 2012, the Group’s income from gaming transactions and revenues totalled EUR 97.5 million, i.e. 9.8% more than compared to the 9‑month period of 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.
  • Olympic Entertainment Group AS and the Italian company GHolding agreed on 2 August 2012 to jointly set up and operate medium-sized VLT slot casinos in Italy. Both parties own half of the operating company The Box S.r.l.

During 9-month period of 2012, the Group’s consolidated sales revenue totalled EUR 97.5 million and the revenue totalled EUR 98.0 million, which is 5.1% more than the total revenue of EUR 93.2 million earned during the 9-month period of 2011. The Group’s EBITDA increased from EUR 24.0 million during the 9-month period of 2011 to EUR 27.7 million this year. During the 9-month period of 2012 the operating profit totalled EUR 19.7 million, last year the operating profit totalled EUR 11.5 million.

During the 9-month period of 2012, gaming operations accounted for 92.5% and other revenue 7.5% of the Group’s consolidated revenue, the respective percentages for the 9-month period of 2011 were 88.5% and 11.5%.

 

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

  Q3 2012 Change Percentage of total Q3 2011 Percentage of total
Estonia 9,340 13.6% 27.6% 8,225 26.6%
Latvia 8,902 13.7% 26.3% 7,828 25.3%
Lithuania 5,023 -2.6% 14.8% 5,157 16.7%
Poland 6,437 3.9% 19.0% 6,197 20.0%
Slovakia 3,243 18.5% 9.6% 2,737 8.8%
Belarus 906 13.4% 2.7% 799 2.6%
Romania* 0 0.0% 0.0% 0 0.0%
Total 33,851 9.4% 100.0% 30,943 100.0%

 

 

  9m 2012 Change Percentage of total 9m 2011 Percentage of total
Estonia 25,134 14.6% 25.8% 21,933 24.7%
Latvia 24,645 16.8% 25.3% 21,104 23.8%
Lithuania 14,383 3.4% 14.8% 13,914 15.7%
Poland 19,812 -1.8% 20.3% 20,178 22.7%
Slovakia 11,002 33.6% 11.3% 8,236 9.3%
Belarus 2,481 0.9% 2.5% 2,459 2.8%
Romania* 0 -100.0% 0.0% 954 1.1%
Total 97,457 9.8% 100.0% 88,778 100.0%

 

* 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 Q3 2012, the Group had 62 casinos, with the total floor area of 23,354 m². At the end of Q3 2011, the number of the Group’s casinos was 63 and total floor area was 23,149 m².

 

Number of casinos by segment

  30.09.2012 30.09.2011
Estonia 18 17
Latvia 21 21
Lithuania 10 11
Poland 4 6
Slovakia 4 3
Belarus 5 5
Total 62 63

During the 9-month period of 2012, the Group’s consolidated operating expenses decreased by 4.3% or EUR 3.5 million as compared to the expenses during 9-month period in 2011. Depreciation, amortisation and impairment losses decreased the most compared to the 9-month period in 2011 by EUR 4.5 million. Staff costs with social security taxes increased the most as compared to 9-month period of 2011 by EUR 1.5 million and licence fees and gaming taxes by EUR 1.0 million.

Staff costs with social security taxes made up the largest share of the Group’s operating expenses, i.e. EUR 24.0 million, followed by gaming tax expenses of EUR 20.1 million, depreciation, amortisation and impairment losses of EUR 8.0 million, rental expenses of EUR 7.1 million and marketing expenses of EUR 6.6 million.

During the 9-month period in 2012, the consolidated net profit attributable to equity holders of the parent company totalled EUR 17.7 million. During 9-month period in 2011, the consolidated net profit attributable to equity holders of the parent company totalled EUR 10.0 million.

  

Overview by markets

Estonian segment

During the 9-month period in 2012, the external revenue of the Estonian segment totalled EUR 25.4 million, of which the income from gaming transactions totalled EUR 22.7 million and other revenue and income totalled EUR 2.7 million. The external revenue of the Estonian segment increased by 6.1% compared to the 9-month period in 2011. The market share of Olympic Casino Eesti AS in the Estonian gaming market was 57% based on Q3 2012 and 55% based on Q3 2011. During the 9-month period in 2012, the total Estonian gaming market increased by 7% as compared to the 9-month period in 2011.

During the 9-month period in 2012, the EBITDA of the Estonian segment totalled EUR 6.6 million and the operating profit totalled EUR 4.5 million. During the 9-month period in 2011, the EBITDA of the Estonian segment totalled EUR 6.1 million and the operating profit totalled EUR 3.2 million.

At the end of Q3 2012, there were 18 Olympic casinos with 739 slot machines and 20 gaming tables operating in Estonia.

 

Latvian segment

During the 9-month period in 2012, the external revenue of the Latvian segment totalled EUR 24.8 million, of which the income from gaming transactions totalled EUR 22.6 million and other revenue and income totalled EUR 2.2 million. The external revenue of the Latvian segment increased by 17.3% compared to the 9-month period in 2011. The market share of Olympic Casino Latvia SIA in the Latvian gaming market was 20% based on Q3 2012 and 20% based on Q3 2011. During the 9-month period in 2012, the total Latvian gaming market increased by 16% as compared to the 9-month period in 2011.

During the 9-month period in 2012, the EBITDA of the Latvian segment totalled EUR 11.3 million and the operating profit totalled EUR 9.5 million. During the 9-month period in 2011, the EBITDA of the Latvian segment totalled EUR 8.6 million and the operating profit totalled EUR 6.1 million.

At the end of Q3 2012, there were 21 Olympic casinos with 647 slot machines and 25 gaming tables operating in Latvia.

 

Lithuanian segment

During the 9-month period in 2012, the external revenue of the Lithuanian segment totalled EUR 14.4 million, of which the income from gaming transactions totalled EUR 13.5 million and other revenue and income totalled EUR 0.9 million. The external revenue of the Lithuanian segment increased by 3.2% compared to the 9-month period in 2011. The market share of Olympic Casino Group Baltija UAB in the Lithuanian gaming market was 66% based on Q3 2012 and 68% based on Q3 2011. During the 9-month period in 2012, the total Lithuanian gaming market increased by 7% as compared to the 9‑month period in 2011.

During the 9-month period in 2012, the EBITDA of the Lithuanian segment totalled EUR 3.5 million and the operating profit totalled EUR 2.3 million. During the 9-month period in 2011, the EBITDA of the Lithuanian segment totalled EUR 3.3 million and the operating profit totalled EUR 1.8 million.

At the end of Q3 2012, there were 10 Olympic casinos with 356 slot machines and 52 gaming tables operating in Lithuania.

 

Polish segment

During the 9-month period in 2012, the external revenue of the Polish segment totalled EUR 19.9 million, of which the income from gaming transactions totalled EUR 19.5 million and other revenue and income totalled EUR 0.4 million. The external revenue of the Polish segment decreased by 11.7% compared to the 9-month period in 2011.

During the 9-month period in 2012, the EBITDA of the Polish segment totalled EUR 3.4 million and the operating profit totalled EUR 1.6 million. During the 9-month period in 2011, the EBITDA of the Polish segment totalled EUR 4.7 million and the operating profit totalled EUR 1.9 million.

At the end of Q3 2012, there were 4 Olympic casinos with 307 slot machines and 41 gaming tables operating in Poland.

 

Slovak segment

During the 9-month period in 2012, the external revenue of the Slovak segment totalled EUR 11.0 million, of which the income from gaming transactions totalled EUR 10.0 million and other revenue and income totalled EUR 1.0 million. The external revenue of the Slovak segment increased by 33.6% compared to the 9-month period in 2011.

During the 9-month period in 2012, the EBITDA of the Slovak segment totalled EUR 2.0 million and the operating profit totalled EUR 1.1 million. During the 9-month period in 2011, the EBITDA of the Slovak segment totalled EUR 1.6 million and the operating profit totalled EUR 0.9 million.

At the end of Q3 2012, there were 4 Olympic casinos with 202 slot machines and 44 gaming tables operating in Slovakia.


Belarus segment

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

During the 9-month period in 2012, the external revenue of the Belarusian segment totalled EUR 2.5 million, of which the income from gaming transactions totalled EUR 2.3 million and other revenue and income totalled EUR 0.2 million. The external revenue of the Belarusian segment increased by 2.4% compared to the 9-month period in 2011.

During the 9-month period in 2012, the EBITDA of the Belarusian segment totalled EUR 0.9 million and the operating profit totalled EUR 0.8 million. During the 9-month period in 2011, the EBITDA of the Belarusian segment totalled EUR 0.6 million and the operating profit totalled EUR 0.1 million.

At the end of Q3 2012, there were 5 Olympic casinos with 228 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 2012, the consolidated balance sheet total of the Group was EUR 118.1 million (31 December 2011: EUR 101.0 million). The balance sheet total increased by 17.0% during the 9-month period in 2012.

Current assets totalled EUR 65.3 million or 55.3% of total assets, and non-current assets totalled EUR 52.8 million or 44.7% of total assets. At the balance sheet date, the liabilities totalled EUR 32.0 million and the equity totalled EUR 86.1 million. The largest liability items included payables to the shareholders from the reduction of share capital in the amount of EUR 15.1 million, borrowings of EUR 3.9 million, tax liabilities of EUR 4.3 million and payables to employees of EUR 2.5 million.

 

Investments

During the 9-month period in 2012, the Group’s expenditures on property, plant and equipment totalled EUR 5.7 million, of which EUR 3.1 million was spent on construction and reconstruction of casinos and EUR 2.6 million on new gaming equipment.

During the 9-month period in 2011, expenditures on property, plant and equipment totalled EUR 2.8 million.

 

Cash flows

During the 9-month period in 2012, the Group’s cash flows generated from operating activities totalled EUR 23.7 million. Cash flows used in investing activities totalled EUR 7.1 million and cash flows used in financing activities totalled EUR 2.3 million. Net cash flows totalled EUR 14.3 million.

During the 9-month period in 2011, the Group’s cash flows generated from operating activities totalled EUR 23.4 million. Cash flows used in investing activities totalled EUR 9.8 million and cash flows used in financing activities totalled EUR 8.3 million. Net cash flows totalled EUR 5.3 million.

 

Staff

At 30 September 2012, the Group employed 2,310 people (31 December 2011: 2,336): 523 in Estonia, 472 in Latvia, 613 in Lithuania, 375 in Poland, 226 in Slovakia and 101 in Belarus.

During the 9-month period in 2012, employee wages and salaries including social security taxes totalled EUR 24.0 million (9m 2011: EUR 22.4 million). During the 9-month period in 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 641 thousand (9m 2011: EUR 516 thousand) and EUR 117 thousand (9m 2011: EUR 117 thousand), respectively.

 

Consolidated statement of financial position

  30.09.2012 31.12.2011
ASSETS    
Current assets    
Cash and cash equivalents 47,702 33,413
Financial investments 13,518 9,508
Receivables and prepayments 2,882 2,606
Prepaid income tax 267 397
Inventories 963 909
Total current assets 65,332 46,833
     
Non-current assets    
Deferred tax assets 1,161 1,111
Financial investments 2,948 2,937
Other long-term receivables 654 712
Investment property 1,804 1,795
Property, plant and equipment 17,898 19,754
Intangible assets 28,326 27,822
Total non-current assets 52,791 54,131
     
TOTAL ASSETS 118,123 100,964
     
     
LIABILITIES AND EQUITY    
Current liabilities    
Borrowings 3,110 3,113
Trade and other payables 25,507 9,870
Income tax payable 881 1,215
Provisions 1,536 1,881
Total current liabilities 31,034 16,079
     
Non-current liabilities    
Deferred tax liability 116 90
Borrowings 806 3,136
Total non-current liabilities 922 3,226
     
TOTAL LIABILITIES 31,956 19,305
     
EQUITY    
Share capital 60,532 81,718
Share premium 0 14,535
Statutory reserve capital 0 2,470
Other reserves 117 53
Translation reserves -659 -1,776
Retained earnings / accumulated losses 20,824 -19,930
Total equity attributable to equity holders of the parent 80,814 77,070
Non-controlling interest 5,353 4,589
TOTAL EQUITY 86,167 81,659
     
TOTAL LIABILITIES AND EQUITY 118,123 100,964

 

Consolidated statement of comprehensive income

  Q3 2012 Q3 2011 9m 2012 9m 2011
Continuing operations        
Income from gaming transactions 31,409 28,661 90,629 81,711
Revenue 2,442 2,282 6,828 6,113
Other income 35 432 558 4,443
Total revenue and income 33,886 31,375 98,015 92,267
         
Cost of materials, goods and services -763 -750 -2,118 -2,057
Other operating expenses -14,733 -13,627 -44,030 -41,893
Staff costs -7,923 -7,345 -23,955 -21,717
Depreciation, amortisation and impairment -2,392 -3,240 -7,959 -11,031
Other expenses -58 -678 -216 -1,664
Total operating expenses -25,869 -25,640 -78,278 -78,362
         
Operating profit 8,017 5,735 19,737 13,905
         
Interest income 63 127 216 280
Interest expense -42 -108 -144 -351
Foreign exchange gains (losses) 8 47 -37 160
Other finance income and costs 889 377 1,412 372
Total finance income and costs 918 443 1,447 461
         
Profit from operating activities 8,935 6,178 21,184 14,366
         
Income tax expense -1,274 -625 -2,714 -1,582
Net profit for the period from continuing operations 7,661 5,553 18,470 12,784
         
Net profit (loss) for the period from discontinued operations 0 0 0 -2,462
         
Net profit for the period 7,661 5,553 18,470 10,322
Attributable to equity holders of the parent company 7,337 5,606 17,696 10,034
Attributable to non-controlling interest 324 -53 774 288
         
         
Other comprehensive income        
Currency translation differences        
Continuing operations 420              -1,581      1,117 -2,299
Discontinued operations 0 0 0 -187
Total comprehensive profit for the period 8,081 3,972 19,587 7,836
Attributable to equity holders of the parent company 7,757 4,025 18,813 7,548
Attributable to non-controlling interest 324 -53 774 288
         
         
Basic earnings per share* 4.8 3.7 11.7 6.6
From continuing operations 4.8 3.7 11.7 8.2
From discontinuing operations 0.0 0.0 0.0 -1.6
         
Diluted earnings per share* 4.8 3.7 11.7 6.6
From continuing operations 4.8 3.7 11.7 8.2
From discontinuing operations 0.0 0.0 0.0 -1.6

  * 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_Q3_2012_ENG.pdf

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