Announcements

Consolidated unaudited results for Q3 and 9m 2015

Posted on 27.10.2015

Untitled Document

Key performance indicators of the Group

    9M 2015 9M 2014 9M 2013
Revenues m€ 121.0 110.4 105.9
Gaming tax m€ 22.3 21.2 21.4
EBITDA m€ 29.2 27.1 28.6
EBIT m€ 23.3 20.8 22.7
Net profit m€ 19.6 17.2 18.3
EBITDA margin % 24.1 24.5 27.1
Operating margin % 19.2 18.8 21.4
Net margin % 16.2 15.6 17.3
         
Assets m€ 135.3 120.7 108.9
Equity m€ 115.0 105.0 94.1
ROE % 18.8 18.2 21.4
ROA % 15.3 15.0 16.1
Current ratio times 2.5 2.9 3.1
         
Casinos at end of period # 97 97 83
Casino floor area at end of period m2 30,343 32,119 27,230
Employees # 2,636 2,621 2,534
         
Slot machines at end of period # 3,388 3,481 3,052
Gaming tables at end of period # 188 193 188

 

Key developments of the Group during the 9 months of 2015:

  • The Group’s consolidated sales revenues for 9 months 2015 amounted to EUR 120.6 million, up 9.6% or EUR 10.5 million y‑o‑y.
  • Gaming revenues accounted for 93.9% (113.3 m€) and other revenues for 6.1% (7.3 m€) of the Group’s consolidated sales revenues for 9 months 2015. A year before the revenue split was 94.0% (103.5 m€) and 6.0% (6.6 m€), respectively.
  • The Group’s consolidated EBITDA for 9 months 2015 amounted to EUR 29.2 million, a growth of 8.0% from EUR 27.1 million a year before. The Group’s consolidated operating profit increased EUR 2.5 million (+12.0%) to EUR 23.3 million.
  • The Group’s consolidated net profit attributable to equity holders of the parent company for 9 months 2015 totalled EUR 19.6 million compared to EUR 17.2 million a year ago.
  • 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.
  • 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.
  • 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.
  • Group company Olympic Casino Latvia SIA signed on 24 July 2015 the agreement to acquire 100% shareholding in Latvian casino operator SIA Garkalns, which is also the 100% owner of the subsidiary SIA Post-Nevada. The purpose of the acquisition is to increase the market share in Latvia. The completion of the transaction is dependent on the ordinary conditions, including the approval from the Latvian Competition Council. On the completion of the transaction Group will own 57 casinos in Latvia.
  • Group company Jackpot Game S.r.l. has acquired on 30 July 2015 business activity of operating two VLT slot casinos from the Italian VLT casino operator Pasquale Di Gaetano - Judica Concetta and sons sas. The purpose of the acquisition is to increase the market share in Italy. On the completion of the transaction OEG will own 14 VLT slot casinos in Italy.
  • On 31 August 2015 Group company Kesklinna Hotelli OÜ and Swedbank AS concluded a loan agreement with the loan limit of EUR 25,000,000. Loan will be used for financing construction of the Hilton Tallinn Park hotel.

 

The Group’s consolidated sales revenues by segments:

‘000€ Q3 2015 Q3 2014 Change 9M 2015 9M 2014 Change
Estonia 8,804 8,005 10.0% 26,216 24,252 8.1%
Latvia 14,598 12,874 13.4% 40,651 34,556 17.6%
Lithuania 5,190 5,623 -7.7% 15,979 16,328 -2.1%
Poland 4,745 5,269 -9.9% 18,084 17,462 3.6%
Slovakia 3,921 3,914 0.2% 11,726 11,650 0.7%
Belarus 169 483 -65.0% 656 1,449 -54.7%
Italy 2,506 1,934 29.6% 7,331 4,397 66.7%
Total 39,933 38,102 4.8% 120,643 110,094 9.6%

 

Number of casinos by segment:

  30 September 2015 30 September 2014
Estonia 20 18
Latvia 37 37
Lithuania 18 15
Poland 1 2
Slovakia 7 7
Belarus 2 6
Italy 12 12
Total 97 97

 

Overview by markets

Estonia

The sales revenues of Estonian segment for 9 months 2015 amounted to EUR 26.2 million (+1.9 m€, +8.1%), EBITDA to EUR 4.6 million (-1.3 m€, -22.6%) and operating profit to EUR 3.1 million (-1.5 m€, -32.2%). Gaming revenue increased 7.7% y-o-y amounting to EUR 25.0 million.

At the end of September 2015, there were 20 Olympic casinos with 817 slot machines and 20 gaming tables operating in Estonia. As at 30 September 2015, the Estonian operations employed 507 people.

Latvia

The sales revenues of Latvian segment for 9 months 2015 amounted to EUR 40.7 million (+6.1 m€, +17.6%), EBITDA to EUR 19.4 million (+5.0 m€, +34.8%) and operating profit to EUR 17.2 million (+5.3 m€, +44.1%). Gaming revenue increased 17.9% y‑o‑y amounting to EUR 37.4 million.

At the end of September 2015, there were 37 Olympic casinos with 1,066 slot machines and 19 gaming tables operating in Latvia. As at 30 September 2015, the Latvian operations employed 695 people.

Lithuania

The sales revenues of Lithuanian segment for 9 months 2015 amounted to EUR 16.0 million (-0.3 m€, -2.1%), EBITDA to EUR 2.4 million (-1.0 m€, -30.0%) and operating profit to EUR 1.6 million (-1.0 m€, -37.5%). Gaming revenue decreased 2.0% y-o-y amounting to EUR 15.1 million.

At the end of September 2015, there were 18 Olympic casinos with 557 slot machines and 64 gaming tables operating in Lithuania. As at 30 September 2015, the Lithuanian operations employed 726 people.

Poland

The sales revenues of Polish segment for 9 months 2015 amounted to EUR 18.1 million (+0.6 m€, +3.6%), EBITDA to EUR 2.3 million (-0.3 m€, -12.6%) and operating profit to EUR 1.8 million (-0.3 m€, -12.7%). Gaming revenue increased 3.5% y-o-y amounting to EUR 17.8 million.

At the end of September 2015, there was 1 Olympic casino with 145 slot machines and 29 gaming tables operating in Poland. As at 30 September 2015, the Polish operations employed 254 people.

Slovakia

The sales revenues of Slovak segment for 9 months 2015 amounted to EUR 11.7 million (+0.0 m€, +0.7%), EBITDA to EUR 0.4 million (-0.5 m€, -55.2%) and operating loss to EUR -0.4 million (-0.4 m€, -1,089.4%). Gaming revenue decreased 0.1% y-o-y amounting to EUR 10.3 million.

At the end of September 2015, there were 7 Olympic casinos with 291 slot machines and 56 gaming tables operating in Slovakia. As at 30 September 2015, the Slovak operations employed 342 people.

Belarus

The sales revenues of Belarusian segment for 9 months 2015 amounted to EUR 0.7 million (-0.8 m€, -54.8%), EBITDA to EUR -0.3 million (+0.1 m€, -21.9%) and operating loss to EUR -0.3 million (+0.2 m€, -36.8%). Gaming revenue decreased 54.9% y‑o‑y amounting to EUR 0.6 million.

At the end of September 2015, there were 2 Olympic casinos with 74 slot machines operating in Belarus. As at 30 September 2015, the Belarusian operations employed 54 people.

Italy

The sales revenues of Italian segment before deducting the gaming tax of Italy for 9 months 2015 amounted to EUR 16.0 million (+6.6 m€, +70.9%), EBITDA to EUR 0.5 million (+0.3 m€, +170.3%) and operating profit to EUR 0.1 million (+0.2 m€,    -210.8%).

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

 

Financial position

As at 30 September 2015, the total assets of the Group amounted to EUR 135.3 million, up 12.1% or EUR 14.6 million compared to the same period a year ago.

Current assets totalled EUR 42.9 million or 31.7% of total assets, and non-current assets EUR 92.4 million or 68.3% of total assets. The liabilities amounted to EUR 20.3 million and equity to EUR 115.0 million. The largest liabilities included suppliers payables and advances (6.0 m€), tax liabilities (4.4 m€) and payables to employees (3.6 m€).

Investments

In 9 months 2015, the Group’s expenditures on property, plant and equipment totalled EUR 18.7 million (+4.7 m€, +33.4%), of which EUR 3.9 million was invested into new gaming equipment (-1.6 m€, -29.7%) and EUR 14.4 million (+6.5 m€, +82.5%) into construction of hotel and construction and reconstruction of casinos.

Cash flows

In 9 months 2015, the Group’s cash flows generated from operating activities amounted to EUR 25.6 million (+3.1 m€, +13.6%) and cash flows used in investing activities to EUR -15.9 million (+2.7 m€). Financing cash flows amounted to EUR ‑13.5 million (+0.6 m€). Net cash flows totalled EUR -3.8 million (+6.3 m€).

Staff

As at 30 September 2015, the Group employed 2,636 people, up by 15 y-o-y.

In 9 months 2015, total personnel expenses amounted to EUR 32.2 million (+3.7 m€, +12.9%). In 9 months 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 620 thousand (EUR 623 thousand in 9 months 2014) and EUR 111 thousand (EUR 114 thousand in 9 months 2014), respectively.

 

Consolidated statement of financial position 

(EUR thousands) 30.09.2015 31.12.2014
ASSETS    
Current assets    
Cash and cash equivalents 36,373 40,117
Financial investments 1,045 1,108
Receivables and prepayments 3,652 3,276
Prepaid income tax 557 483
Inventories 1,266 1,163
Assets held for sale 0 1,016
Total current assets 42,893 47,163
     
Non-current assets    
Deferred tax assets 1,438 1,398
Financial investments 4,481 4,277
Other long-term receivables 491 688
Investment property 268 292
Property, plant and equipment 47,215 34,368
Intangible assets 38,531 38,045
Total non-current assets 92,424 79,068
     
TOTAL ASSETS 135,317 126,231
     
     
LIABILITIES AND EQUITY    
Current liabilities    
Borrowings 128 253
Trade and other payables 14,355 13,121
Income tax payable 633 741
Provisions 1,748 1,424
Total current liabilities 16,864 15,539
     
Non-current liabilities    
Borrowings 3,106 1,216
Deferred tax liability 374 272
Total non-current liabilities 3,480 1,488
     
TOTAL LIABILITIES 20,344 17,027
     
EQUITY    
Share capital 60,716 60,716
Share premium 258 258
Statutory reserve capital 3,574 2,495
Other reserves 247 0
Translation reserves -1,202 -1,420
Retained earnings 45,164 41,816
Total equity attributable to equity holders of the parent 108,757 103,865
Non-controlling interest 6,216 5,339
TOTAL EQUITY 114,973 109,204
     
TOTAL LIABILITIES AND EQUITY 135,317 126,231

 

Consolidated statement of comprehensive income  

(EUR thousands) Q3 2015 Q3 2014 9M 2015 9M 2014
         
Income from gaming transactions 37,431 35,782 113,319 103,478
Revenue 2,502 2,320 7,324 6,616
Other income 113 37 388 288
Total revenue and income 40,046 38,139 121,031 110,382
         
Cost of materials, goods and services -913 -866 -2,690 -2,383
Other operating expenses -18,174 -17,632 -56,595 -52,085
Staff costs -10,032 -9,253 -32,220 -28,543
Depreciation, amortisation and impairment -2,024 -2,225 -5,955 -6,280
Other expenses -122 -29 -308 -312
Total operating expenses -31,265 -30,005 -97,768 -89,603
         
Operating profit 8,781 8,134 23,263 20,779
         
Interest income 10 16 41 57
Interest expense -7 -9 -21 -20
Foreign exchange losses 5 0 20 -6
Other finance income and costs -1 -1 -5 -2
Total finance income and costs 7 6 35 29
         
Profit from operating activities 8,788 8,140 23,298 20,808
         
Income tax expense -748 -1,121 -2,896 -2,894
Net profit for the period 8,040 7,019 20,402 17,914
Attributable to equity holders of the parent company 7,804 6,916 19,604 17,220
Attributable to non-controlling interest 236 103 798 694
         
         
Other comprehensive income        
Currency translation differences -29 22 218 107
Total comprehensive profit for the period 8,011 7,041 20,620 18,021
Attributable to equity holders of the parent company 7,775 6,938 19,822 17,327
Attributable to non-controlling interest 236 103 798 694
         
         
Basic earnings per share* 5.1 4.6 12.9 11.3
Diluted earnings per share* 5.1 4.6 12.9 11.3

   * 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_2015_ENG.pdf 

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