Announcements

Consolidated unaudited results for Q3 and 9m 2013

Posted on 28.10.2013

Key performance indicators of the Group

    9M 2013 9M 2012 9M 2011
Revenues m€ 105.9 98.0 93.2
Gaming tax m€ 21.4 20.1 19.2
EBITDA m€ 28.6 27.7 24.0
EBIT m€ 22.7 19.7 11.5
Net profit m€ 18.3 17.7 10.0
EBITDA margin % 27.1 28.3 25.7
Operating margin % 21.4 20.1 12.3
Net margin % 17.3 18.1 10.8
         
Assets m€ 108.9 118.1 105.3
Equity m€ 94.1 86.2 77.6
ROE % 21.4 23.0 13.0
ROA % 16.1 15.8 9.4
Current ratio times 3.1 2.1 2.2
         
Casinos at end of period # 83 62 63
Casino floor area at end of period m2 27,230 23,354 23,149
Employees # 2,534 2,310 2,004
         
Slot machines at end of period # 2,970 2,479 2,447
Gaming tables at end of period # 185 182 173

 

Key developments of the Group during the 9 months of 2013:

  • The Group’s consolidated sales revenues for 9 months 2013 amounted to EUR 105.6 million, up 8.4% or EUR 8.1 million y‑o‑y.
  • Gaming revenues accounted for 93.4% (98.6 m€) and other revenues for 6.6% (7.0 m€) of the Group’s consolidated sales revenues for 9 months 2013. A year before the revenue split was 93.0% (90.6 m€) and 7.0% (6.8 m€), respectively.
  • The Group’s consolidated EBITDA for 9 months 2013 amounted to EUR 28.6 million, up 3.4% from EUR 27.7 million a year before. The Group’s consolidated operating profit increased EUR 2.9 million (+14.8%) to EUR 22.7 million.
  • The Group’s consolidated net profit attributable to equity holders of the parent company for 9 months 2013 totalled EUR 18.3 million compared to EUR 17.7 million a year ago.
  • On 11 March Olympic Casino Eesti AS, the subsidiary of Olympic Entertainment Group AS, acquired a 100% shareholding in Siquia Holding B.V. registered in the Netherlands.
  • On 11 March 2013 Olympic Entertainment Group AS established and registered the companies Gametech Services Ltd and Brandhouse Ltd in Jersey to create a legal platform for the expansion of the Group’s activities in markets related to online gaming.
  • The annual general meeting of the shareholders held on 18 April 2013 decided to pay dividends in the amount of 15,132,950.50 euros.
  • 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.
  • On 28 June 2013 Siquia Holding B.V, the subsidiary of Olympic Casino Eesti AS, signed a sales-purchase agreement to acquire 100% shareholding in Latvian casino operator Altea SIA.
  • On 18 July 2013 Group entity Kesklinna Hotelli OÜ and AS Merko Ehitus Eesti signed an agreement for the construction of new upscale hotel instead of Reval Park Hotel & Casino. The new hotel will be operated by Hilton Worldwide under its Hilton Hotels & Resorts brand. The estimated cost of the new hotel and casino complex expected to open in December 2015 is EUR 36 million.
  • Group entity Olympic Casino Latvia SIA started providing online gaming services in Latvia from 1 August 2013. In addition, the Group launched sports betting and sports bar network under Olybet name, a new brand for online services.

 

The Group’s consolidated sales revenue by segments:

‘000€ Q3 2013 Q3 2012 Change 9M 2013 9M 2012 Change
Estonia 9,615 9,340 2,9% 26,011 25,134 3,5%
Latvia 11,064 8,902 24,3% 27,492 24,645 11,6%
Lithuania 5,461 5,023 8,7% 15,497 14,383 7,7%
Poland 6,739 6,437 4,7% 20,308 19,812 2,5%
Slovakia 4,253 3,243 31,1% 11,959 11,002 8,7%
Belarus 554 906 -38,9% 1,808 2,481 -27,1%
Italy 773 0 100,0% 2,530 0 100,0%
Total 38,459 33,851 13,6% 105,605 97,457 8,4%

                                                                                                                                                        

Number of casinos by segment:

  30 September 2013 30 September 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 9 months 2013 amounted to EUR 26.0 million (+0.9 m€, +3.5%), EBITDA to EUR 6.8 million (+0.2 m€, +3.1%) and operating profit to EUR 5.6 million (+1.1 m€, +26.3%). Gaming revenue increased 4.1%
y-o-y amounting to EUR 23.7 million.

The market share of Olympic Casino Eesti AS in the Estonian land-based gaming market was 57% in Q3 2013 remaining on the same level as a year ago. All in all, total Estonian land-based gaming market decreased in 9 months 2013 by approximately 4% as compared to the same period a year ago.

At the end of Q3 2013, there were 18 Olympic casinos with 741 slot machines and 19 gaming tables operating in Estonia. As at 30 September 2013, the Estonian operations employed 506 people.

Latvia

The sales revenues of Latvian segment for 9 months 2013 amounted to EUR 27.5 million (+2.8 m€, +11.6%), EBITDA to EUR 12.1 million (+0.9 m€, +7.6%) and operating profit to EUR 10.4 million (+0.9 m€, +9.8%). Gaming revenue increased 11.8% y-o-y amounting to EUR 25.3 million.

The market share of Latvian operations in the Latvian gaming market was approximately 23% in 9 months 2013, up from 20% a year ago. Total Latvian gaming market increased by approximately 3% as compared to the 9 months 2012.

As at the end of September 2013, there were 38 Olympic casinos with 1,001 slot machines and 18 gaming tables operating in Latvia. As at 30 September 2013, there were 662 employees in Latvia.

Lithuania

The sales revenues of Lithuanian segment for 9 months 2013 amounted to EUR 15.5 million (+1.1 m€, +7.7%), EBITDA to EUR 3.5 million (-0.01 m€, -1.5%) and operating profit to EUR 2.5 million (+0.1 m€, +5.4%). Gaming revenue increased 8.4% y-o-y amounting to EUR 14.6 million.

The market share of Olympic Casino Group Baltija UAB in the Lithuanian gaming market was 69% in 9 months 2013, up from 67% a year before. Total Lithuanian gaming market increased by 6% as compared to the nine months 2012.

As at the end of September 2013, there were 12 Olympic casinos with 394 slot machines and 58 gaming tables operating in Lithuania. As at 30 September 2013, the Lithuanian operations employed 670 people.

Poland

The sales revenues of Polish segment for 9 months 2013 amounted to EUR 20.3 million (+0.5 m€, +2.5%), EBITDA to EUR 4.0 million (+0.7 m€, +20.0%) and operating profit to EUR 3.2 million (+1.6 m€, +97.7%). Gaming revenue increased 2.8% y-o-y amounting to EUR 20.0 million.

As at the end of September 2013, there were 3 Olympic casinos with 271 slot machines and 38 gaming tables operating in Poland. As at 30 September 2013, the Polish operations employed 340 people.

Slovakia

The sales revenues of Slovak segment for 9 months 2013 amounted to EUR 12.0 million (+1.0 m€, +8.7%), EBITDA to EUR 1.8 million (-0.2 m€, -10.6%) and operating profit to EUR 0.9 million (-0.2 m€, -17.3%). Gaming revenue increased 8.0% y-o-y amounting to EUR 10.8 million.

As at the end of September 2013, there were 5 Olympic casinos with 263 slot machines and 52 gaming tables operating in Slovakia. As at 30 September 2013, The Slovak operations employed 263 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 9 months 2013 amounted to EUR 1.8 million (-0.7 m€, -27.1%), EBITDA to EUR 0.06 million (-0.9 m€, -93.7%) and operating profit to EUR 0.01 million (-0.8 m€). Gaming revenue decreased 26.2% y-o-y amounting to EUR 1.7 million.

As at the end of September 2013, there were 5 Olympic casinos with 188 slot machines operating in Belarus. As at 30 September 2013, the Belarusian operations employed 86 people.

Italy

The sales revenues of Italian segment before deducting the gaming tax of Italy for September 2013 amounted to EUR 5.3 million, EBITDA to EUR 0.4 million and operating profit to EUR 0.1 million.

The Group is operating in Italy since August 2012. As at the end of Q3 2013, there were 2 VLT slot casinos with 112 slot machines operating in Italy under the brand of Slottery. As at 30 September 2013, there were 7 employees in Italy.


Financial position

As at 30 September 2013, the total assets of the Group amounted to EUR 108.9 million, down 7.8% or EUR 9.2 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 44.5 million or 40.8% of total assets, and non-current assets EUR 64.5 million or 59.2% of total assets. The liabilities amounted to EUR 14.9 million and equity to EUR 94.1 million. The largest liabilities included suppliers payable and customer prepayments (4.6 m€), tax liabilities (4.4 m€) and payables to employees (3.0 m€).

Investments

In 9 months 2013, the Group’s expenditures on property, plant and equipment totalled EUR 9.0 million (+3.3 m€), of which EUR 4.4 million was invested to new gaming equipment (+1.3m€) and EUR 4.3 million (+1.7 m€) to construction and reconstruction of casinos.
 

Cash flows

In 9 months 2013, the Group’s cash flows generated from operating activities amounted to EUR 22.5 million (-1.7 m€) and cash flows from investing activities to EUR -3.2 million (-3.9 m€). Financing cash flows amounting to EUR -17.8 million (‑15.5 €) were largely impacted by dividend payment in the amount of EUR 17.6 million. Net cash flows totalled EUR 1.5 million (-12.8 m€).

Staff

As at 30 September 2013, the Group employed 2,534 people, up by 224 y-o-y mostly due to opening new casinos in Lithuania and Slovakia as well as expansion in Latvia.

In 9 months 2013, total personnel expenses amounted to EUR 26.0 million (+2.0 m€, +8.5%). 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 615 thousand (626 thousand in 9 months 2012) and EUR 117 thousand (EUR 117 thousand in 9 months 2012), respectively.

 

Consolidated statement of financial position

 (EUR thousands) 30.09.2013 31.12.2012
ASSETS    
Current assets    
Cash and cash equivalents 37,451 35,973
Financial investments 1,298 13,773
Receivables and prepayments 3,974 2,730
Prepaid income tax 564 280
Inventories 1,168 1,036
Total current assets 44,455 53,792
     
Non-current assets    
Deferred tax assets 1,032 1,038
Financial investments 3,402 2,035
Other long-term receivables 685 712
Investment property 1,785 1,785
Property, plant and equipment 22,901 19,611
Intangible assets 34,670 30,226
Total non-current assets 64,475 55,407
     
TOTAL ASSETS 108,930 109,199
     
     
LIABILITIES AND EQUITY    
Current liabilities    
Borrowings 239 241
Trade and other payables 12,478 12,827
Income tax payable 517 827
Provisions 1,067 1,585
Total current liabilities 14,301 15,480
     
Non-current liabilities    
Deferred tax liability 152 140
Borrowings 426 596
Total non-current liabilities 578 736
     
TOTAL LIABILITIES 14,879 16,216
     
EQUITY    
Share capital 60,532 60,532
Statutory reserve capital 1,210 0
Other reserves 211 141
Translation reserves -1,287 -700
Retained earnings 29,275 27,327
Total equity attributable to equity holders of the parent 89,941 87,300
Non-controlling interest 4,110 5,683
TOTAL EQUITY 94,051 92,983
     
TOTAL LIABILITIES AND EQUITY 108,930 109,199

 

Consolidated statement of comprehensive income 

 (EUR thousands) Q3 2013 Q3 2012 9M 2013 9M 2012
Income from gaming transactions 35,986 31,409 98,636 90,629
Revenue 2,473 2,442 6,969 6,828
Other income 33 35 282 558
Total revenue and income 38,492 33,886 105,887 98,015
         
Cost of materials, goods and services -778 -763 -2,228 -2,118
Other operating expenses -16,571 -14,733 -48,816 -44,030
Staff costs -9,071 -7,923 -26,003 -23,955
Depreciation, amortisation and impairment -1,783 -2,392 -5,983 -7,959
Other expenses -97 -58 -191 -216
Total operating expenses -28,300 -25,869 -83,221 -78,278
         
Operating profit 10,192 8,017 22,666 19,737
         
Interest income 65 63 121 216
Interest expense -4 -42 -13 -144
Foreign exchange gains (losses) -5 8 -58 -37
Other finance income and costs -1 889 -622 1,412
Total finance income and costs 55 918 -572 1,447
         
Profit from operating activities 10,247 8,935 22,094 21,184
         
Income tax expense -1,192 -1,274 -2,879 -2,714
Net profit for the period 9,055 7,661 19,215 18,470
Attributable to equity holders of the parent company 8,631 7,337 18,291 17,696
Attributable to non-controlling interest 424 324 924 774
         
         
Other comprehensive income        
Currency translation differences 265 420 -587 1,117
Total comprehensive profit for the period 9,320 8,081 18,628 19,587
Attributable to equity holders of the parent company 8,896 7,757 17,704 18,813
Attributable to non-controlling interest 424 324 924 774
         
         
Basic earnings per share* 5.7 4.8 12.1 11.7
Diluted earnings per share* 5.7 4.8 12.1 11.7

  * 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_2013_ENG.pdf 

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