Announcements

Consolidated unaudited results for Q3 and 9m 2014

Posted on 28.10.2014

Key performance indicators of the Group

    9M 2014 9M 2013 9M 2012
Revenues m€ 110.4 105.9 98.0
Gaming tax m€ 21.2 21.4 20.1
EBITDA m€ 27.1 28.6 27.7
EBIT m€ 20.8 22.7 19.7
Net profit m€ 17.2 18.3 17.7
EBITDA margin % 24.5 27.1 28.3
Operating margin % 18.8 21.4 20.1
Net margin % 15.6 17.3 18.1
         
Assets m€ 120.7 108.9 118.1
Equity m€ 105.0 94.1 86.2
ROE % 18.2 21.4 23.0
ROA % 15.0 16.1 15.8
Current ratio times 2.9 3.1 2.1
         
Casinos at end of period # 97 83 62
Casino floor area at end of period m2 32,119 27,230 23,354
Employees # 2,621 2,534 2,310
         
Slot machines at end of period # 3,481 3,052 2,479
Gaming tables at end of period # 193 188 182

 

 

Key developments of the Group during the 9 months of 2014:

  • The Group’s consolidated sales revenues for 9 months 2014 amounted to EUR 110.1 million, up 4.3% or EUR 4.5 million y‑o‑y.
  • Gaming revenues accounted for 94.0% (103.5 m€) and other revenues for 6.0% (6.6 m€) of the Group’s consolidated sales revenues for 9 months 2014. A year before the revenue split was 93.4% (98.6 m€) and 6.6% (7.0 m€), respectively.
  • The Group’s consolidated EBITDA for 9 months 2014 amounted to EUR 27.1 million, a decline of -5.6% from EUR 28.6 million a year before. The Group’s consolidated operating profit decreased EUR 1.9 million (-8.3%) to EUR 20.8 million.
  • In the first 9 months of 2014, the consolidated net profit attributable to equity holders of the parent company totalled EUR 17.2 million compared to EUR 18.3 million a year ago.
  • On 23 January 2014 Olympic Entertainment Group AS has acquired 100% shareholding in Slovak VLT slot casino operator WINWIN Slovakia S.r.o. (renamed later as OlyBet Slovakia S.r.o.) and has opened its first VLT casino on Slovak market during the second quarter of 2014.
  • The general meeting of shareholders held on 25 April 2014 has decided to pay out dividends in amount of EUR 15,132,950.50, that were paid out to shareholders on 13 May 2014.
  • On 29 April 2014 Olympic Entertainment Group AS has increased to 70% its holding in The Box S.r.l, a company that manages operations in Italy, which in turn has acquired a 100% holding in Slottery S.r.l.
  • In May 2014 Olympic Entertainment Group AS has adopted a decision to restructure its Latvian subsidiaries, which leaded to conversion of Olympic Casino Latvia SIA share capital into euros and its increase. It was also decided to merge OEG Latvian subsidiries Olympic Casino Latvia SIA and Altea SIA. The merger process will take 10 months.
  • On 21 July 2014 the supervisory board of Olympic Entertainment Group AS has adopted a resolution to increase the share capital of the Company by EUR 184,680.40 by issuing shares without nominal value. The amount of share capital of the Company after the issuing of new shares is EUR 60,716,482.40. The increase of share capital relates to share option agreements concluded by the Company in 2011 and the exercise of options by option holders.

 

The Group’s consolidated sales revenues by segments:

‘000€ Q3 2014 Q3 2013 Change 9M 2014 9M 2013 Change
Estonia 8,005 9,615 -16.7% 24,252 26,011 -6.8%
Latvia 12,874 11,064 16.4% 34,556 27,492 25.7%
Lithuania 5,623 5,461 3.0% 16,328 15,497 5.4%
Poland 5,269 6,739 -21.8% 17,462 20,308 -14.0%
Slovakia 3,914 4,253 -8.0% 11,650 11,959 -2.6%
Belarus 483 554 -12.8% 1,449 1,808 -19.9%
Italy 1,934 773 150.2% 4,397 2,530 73.8%
Total 38,102 38,459 -0.9% 110,094 105,605 4.3%

 

Number of casinos by segment:

  30 September 2014 30 September 2013
Estonia 18 18
Latvia 37 38
Lithuania 15 12
Poland 2 3
Slovakia 7 5
Belarus 6 5
Italy 12 2
Total 97 83

 

Overview by markets

Estonia

The sales revenues of Estonian segment for 9 months 2014 amounted to EUR 24.3 million (-1.8 m€, -6.8%), EBITDA to EUR 6.4 million (-0.7 m€, -9.6%) and operating profit to EUR 5.2 million (-0.8 m€, -13.3%). Gaming revenue decreased 2.3% y-o-y amounting to EUR 23.1 million.

At the end of September 2014, there were 18 Olympic casinos with 736 slot machines and 19 gaming tables operating in Estonia. As at 30 September 2014, the Estonian operations employed 474 people.

Latvia

The sales revenues of Latvian segment for 9 months 2014 amounted to EUR 34.6 million (+7.1 m€, +25.7%), EBITDA to EUR 14.4 million (+2.2 m€, +18.4%) and operating profit to EUR 11.9 million (+1.5 m€, +14.7%). Gaming revenue increased 25.4% y-o-y amounting to EUR 31.7 million.

As at the end of September 2014, there were 37 Olympic casinos with 1,079 slot machines and 18 gaming tables operating in Latvia. As at 30 September 2014, the Latvian operations employed 686 people.

Lithuania

The sales revenues of Lithuanian segment for 9 months 2014 amounted to EUR 16.3 million (+0.8 m€, +5.4%), EBITDA to EUR 3.5 million (-0.0 m€, -0.5%) and operating profit to EUR 2.6 million (+0.1 m€, +5.6%). Gaming revenue increased 5.3% y-o-y amounting to EUR 15.4 million.

As at the end of September 2014, there were 15 Olympic casinos with 492 slot machines and 63 gaming tables operating in Lithuania. As at 30 September 2014, the Lithuanian operations employed 681 people.

Poland

The sales revenues of Polish segment for 9 months 2014 amounted to EUR 17.5 million (-2.8 m€, -14.0%), EBITDA to EUR 2.6 million (-1.4 m€, -34.9%) and operating profit to EUR 2.1 million (-1.1 m€, -33.2%). Gaming revenue decreased 14.3% y-o-y amounting to EUR 17.2 million.

As at the end of September 2014, there were 2 Olympic casinos with 210 slot machines and 40 gaming tables operating in Poland. As at 30 September 2014, the Polish operations employed 317 people.

Slovakia

The sales revenues of Slovak segment for 9 months 2014 amounted to EUR 11.7 million (-0.3 m€, -2.6%), EBITDA to EUR 0.9 million (-0.9 m€, -50.1%) and operating profit to EUR 0.0 million (-0.9 m€, -95.7%). Gaming revenue decreased 4.2% y-o-y amounting to EUR 10.4 million.

As at the end of September 2014, there were 7 Olympic casinos with 305 slot machines and 53 gaming tables operating in Slovakia. As at 30 September 2014, the Slovak operations employed 297 people.

Belarus

The sales revenues of Belarusian segment for 9 months 2014 amounted to EUR 1.4 million (-0.4 m€, -20.0%), EBITDA to EUR -0.3 million (-0.4 m€, -659.4%) and operating profit to EUR -0.4 million (-0.4 m€, -2,605.8%). Gaming revenue decreased 19.4% y‑o‑y amounting to EUR 1.4 million.

As at the end of September 2014, there were 6 Olympic casinos with 235 slot machines operating in Belarus. As at 30 September 2014, the Belarusian operations employed 104 people.

Italy

The sales revenues of Italian segment before deducting the gaming tax of Italy for 9 months 2014 amounted to EUR 9.3 million (+4.0 m€, +75.2%), EBITDA to EUR 0.2 million (-0.2 m€, -53.6%) and operating loss to EUR 0.1 million (-0.2 m€,             -204.6%).

In April 2014 Olympic Entertainment Group AS has increased to 70% its holding in The Box S.r.l, a company that manages operations in Italy, which in turn has acquired a 100% holding in VLT operaator Slottery S.r.l. As a result of this transaction at the end of September 2014, there were 12 VLT slot casinos with 424 slot machines operating in Italy. As at 30 September 2014, the Italian operations employed 62 people.

Financial position

As at 30 September 2014, the total assets of the Group amounted to EUR 120.7 million, up 10.8% or EUR 11.8 million compared to the same period a year ago.

Current assets totalled EUR 40.6 million or 33.6% of total assets, and non-current assets EUR 80.1 million or 66.4% of total assets. The liabilities amounted to EUR 15.7 million and equity to EUR 105.0 million. The largest liabilities included suppliers payables and advances (4.8 m€), tax liabilities (3.9 m€) and payables to employees (3.3 m€).

Investments

In 9 months 2014, the Group’s expenditures on property, plant and equipment totalled EUR 14.0 million (+5.0 m€, +55.4%), of which EUR 5.5 million was invested into new gaming equipment (+1.1m€, +24.3%) and EUR 7.9 million (+3.6 m€, +84.2%) into construction of hotel and construction and reconstruction of casinos.

Cash flows

In 9 months 2014, the Group’s cash flows generated from operating activities amounted to EUR 22.6 million (+0.1 m€, +0.1%) and cash flows from investing activities to EUR -18.6 million (-15.4 m€). Financing cash flows amounted to EUR -14.1 million (+3.7 mln eurot, +21.1%). Net cash flows totalled EUR ‑10.1 million (-11.6 m€).

Staff

As at 30 September 2014, the Group employed 2,621 people, up by 87 y-o-y mostly due to expansion in Italy.

In 9 months 2014, total personnel expenses amounted to EUR 28.5 million (+2.5 m€, +9.8%). In 9 months 2014, 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 623 thousand (615 thousand in 9 months 2013) and EUR 114 thousand (EUR 117 thousand in 9 months 2013), respectively.

 

Consolidated statement of financial position

  (EUR thousands) 30.09.2014 31.12.2013
ASSETS    
Current assets    
Cash and cash equivalents 34,500 44,582
Financial investments 1,208 1,086
Receivables and prepayments 3,321 2,946
Prepaid income tax 408 357
Inventories 1,163 1,001
Total current assets 40,600 49,972
     
Non-current assets    
Deferred tax assets 1,073 1,077
Financial investments 4,280 3,396
Other long-term receivables 681 670
Investment property 1,484 1,784
Property, plant and equipment 34,429 26,513
Intangible assets 38,166 34,865
Total non-current assets 80,113 68,305
     
TOTAL ASSETS 120,713 118,277
     
     
LIABILITIES AND EQUITY    
Current liabilities    
Borrowings 239 240
Trade and other payables 12,149 13,494
Income tax payable 470 776
Provisions 1,275 1,181
Total current liabilities 14,133 15,691
     
Non-current liabilities    
Deferred tax liability 277 246
Borrowings 1,292 369
Total non-current liabilities 1,569 615
     
TOTAL LIABILITIES 15,702 16,306
     
EQUITY    
Share capital 60,716 60,532
Share premium 258 0
Statutory reserve capital 2,495 1,210
Other reserves 0 235
Translation reserves -1,097 -1,204
Retained earnings 37,438 36,782
Total equity attributable to equity holders of the parent 99,810 97,555
Non-controlling interest 5,201 4,416
TOTAL EQUITY 105,011 101,971
     
TOTAL LIABILITIES AND EQUITY 120,713 118,277

 

Consolidated statement of comprehensive income

  (EUR thousands) Q3 2014 Q3 2013 9M 2014 9M 2013
         
Income from gaming transactions 35,782 35,986 103,478 98,636
Revenue 2,320 2,473 6,616 6,969
Other income 37 33 288 282
Total revenue and income 38,139 38,492 110,382 105,887
         
Cost of materials, goods and services -866 -778 -2,383 -2,228
Other operating expenses -17,632 -16,571 -52,085 -48,816
Staff costs -9,253 -9,071 -28,543 -26,003
Depreciation, amortisation and impairment -2,225 -1,783 -6,280 -5,983
Other expenses -29 -97 -312 -191
Total operating expenses -30,005 -28,300 -89,603 -83,221
         
Operating profit 8,134 10,192 20,779 22,666
         
Interest income 16 65 57 121
Interest expense -9 -4 -20 -13
Foreign exchange losses 0 -5 -6 -58
Other finance income and costs -1 -1 -2 -622
Total finance income and costs 6 55 29 -572
         
Profit from operating activities 8,140 10,247 20,808 22,094
         
Income tax expense -1,121 -1,192 -2,894 -2,879
Net profit for the period 7,019 9,055 17,914 19,215
Attributable to equity holders of the parent company 6,916 8,631 17,220 18,291
Attributable to non-controlling interest 103 424 694 924
         
         
Other comprehensive income        
Currency translation differences 22 265 107 -587
Total comprehensive profit for the period 7,041 9,320 18,021 18,628
Attributable to equity holders of the parent company 6,938 8,896 17,327 17,704
Attributable to non-controlling interest 103 424 694 924
         
         
Basic earnings per share* 4.6 5.7 11.3 12.1
Diluted earnings per share* 4.6 5.7 11.3 12.1

  * 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_2014_ENG.pdf 

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