Announcements

Consolidated unaudited results for Q4 and 12m 2014

Posted on 26.02.2015

Key performance indicators of the Group

    2014 2013 2012
Revenues m€ 150.7 145.8 135.9
Gaming tax m€ 28.2 28.9 27.5
EBITDA m€ 36.2 39.5 38.7
EBIT m€ 25.8 31.8 28.4
Net profit m€ 21.6 25.7 24.2
EBITDA margin % 24.0 27.1 28.5
Operating margin % 17.1 21.8 20.9
Net margin % 14.3 17.7 17.8
         
Assets m€ 126.2 118.3 109.2
Equity m€ 109.2 102.0 93.0
ROE % 21.4 27.9 29.4
ROA % 17.7 22.6 23.0
Current ratio times 3.0 3.2 3.5
         
Casinos at end of period # 98 82 63
Casino floor area at end of period m2 32,242 28,031 24,030
Employees # 2,665 2,515 2,277
         
Slot machines at end of period # 3,481 3,038 2,594
Gaming tables at end of period # 195 191 178

 

Key developments of the Group during the 12 months of 2014:

  • The Group’s consolidated sales revenues for 12 months 2014 amounted to EUR 150.3 million, up 3.5% or EUR 5.1 million y‑o‑y.
  • Gaming revenues accounted for 93.9% (141.1 m€) and other revenues for 6.1% (9.2 m€) of the Group’s consolidated sales revenues for 12 months 2014. A year before the revenue split was 93.6% (135.9 m€) and 6.4% (9.3 m€), respectively.
  • The Group’s consolidated EBITDA for 12 months 2014 amounted to EUR 36.2 million, a decline of -8.6% from EUR 39.5 million a year before. The Group’s consolidated operating profit decreased EUR 6.0 million  (-18.8%) to EUR 25.8 million.
  • The Group´s consolidated net profit attributable to equity holders of the parent company for 12 months 2014 totalled EUR 21.6 million compared to EUR 25.7 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. Merger process was completed at 3rd December 2014.
  • 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€ Q4 2014 Q4 2013 Change 12M 2014 12M 2013 Change
Estonia 8,829 9,217 -4.2% 33,079 35,229 -6.1%
Latvia 13,268 11,775 12.7% 47,825 39,267 21.8%
Lithuania 5,969 6,006 -0.6% 22,297 21,503 3.7%
Poland 5,357 7,100 -24.5% 22,819 27,408 -16.7%
Slovakia 4,146 4,150 -0.1% 15,796 16,109 -1.9%
Belarus 448 570 -21.4% 1,897 2,378 -20.2%
Italy 2,203 827 166.4% 6,600 3,357 96.6%
Total 40,220 39,645 1.5% 150,313 145,251 3.5%


Number of casinos by segment:

  31 December 2014 31 December 2013
Estonia 18 18
Latvia 37 38
Lithuania 16 12
Poland 2 3
Slovakia 7 5
Belarus 6 4
Italy 12 2
Total 98 82

 

Overview by markets

Estonia

The sales revenues of Estonian segment for 2014 amounted to EUR 33.1 million (-2.1 m€, -6.1%), EBITDA to EUR 8.0 million (-1.3 m€, -13.6%) and operating profit to EUR 6.4 million (-1.3 m€, -16.5%). Gaming revenue decreased 2.6% y-o-y amounting to EUR 31.6 million.

At the end of 2014, there were 18 Olympic casinos with 737 slot machines and 19 gaming tables operating in Estonia. As at 31 December 2014, the Estonian operations employed 476 people.

Latvia

The sales revenues of Latvian segment for 2014 amounted to EUR 47.8 million (+8.6 m€, +21.8%), EBITDA to EUR 20.6 million (+3.6 m€, +21.0%) and operating profit to EUR 17.2 million (+2.5 m€, +17.1%). Gaming revenue increased 21.1%      y-o-y amounting to EUR 43.8 million.

At the end of 2014, there were 37 Olympic casinos with 1,059 slot machines and 18 gaming tables operating in Latvia. As at 31 December 2014, the Latvian operations employed 679 people.

Lithuania

The sales revenues of Lithuanian segment for 2014 amounted to EUR 22.3 million (+0.8 m€, +3.7%), EBITDA to EUR 4.4 million (-0.4 m€, -8.9%) and operating profit to EUR 2.9 million (-0.7 m€, -20.1%). Gaming revenue increased 3.6% y-o-y amounting to EUR 21.0 million.

At the end of 2014, there were 16 Olympic casinos with 516 slot machines and 64 gaming tables operating in Lithuania. As at 31 December 2014, the Lithuanian operations employed 715 people.

Poland

The sales revenues of Polish segment for 2014 amounted to EUR 22.8 million (-4.6 m€, -16.7%), EBITDA to EUR 3.2 million  (-2.4 m€, -42.6%) and operating profit to EUR 2.1 million (-2.4 m€, -54.1%). Gaming revenue decreased 17.0% y-o-y amounting to EUR 22.4 million.

At the end of 2014, there were 2 Olympic casinos with 210 slot machines and 41 gaming tables operating in Poland. As at 31 December 2014, the Polish operations employed 335 people.

Slovakia

The sales revenues of Slovak segment for 2014 amounted to EUR 15.8 million (-0.3 m€, -1.9%), EBITDA to EUR 0.5 million    (-1.8 m€, -78.5%) and operating loss to EUR -0.6 million (-1.7 m€, -158.0%). Gaming revenue decreased 3.4% y-o-y amounting to EUR 14.0 million.

At the end of 2014, there were 7 Olympic casinos with 308 slot machines and 53 gaming tables operating in Slovakia. As at 31 December 2014, the Slovak operations employed 306 people.

Belarus

The sales revenues of Belarusian segment for 2014 amounted to EUR 1.9 million (-0.5 m€, -20.2%), EBITDA to EUR -0.6 million (-0.7 m€, -544.1%) and operating loss to EUR -1.8 million (-1.9 m€, -3,799.7%). Gaming revenue decreased 20.3% y‑o‑y amounting to EUR 1.8 million.

At the end of 2014, there were 6 Olympic casinos with 227 slot machines operating in Belarus. As at 31 December 2014, the Belarusian operations employed 96 people.

Italy

The sales revenues of Italian segment before deducting the gaming tax of Italy for 2014 amounted to EUR 14.0 million (+6.9 m€, +98.1%), EBITDA to EUR 0.0 million (-0.4 m€, -99.0%) and operating loss to EUR -0.4 million (-0.5 m€, -508.7%).

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 2014, there were 12 VLT slot casinos with 424 slot machines operating in Italy. As at 31 December 2014, the Italian operations employed 58 people.

Financial position

As at 31 December 2014, the total assets of the Group amounted to EUR 126.2 million, up 6.7% or EUR 7.9 million compared to the same period a year ago.

Current assets totalled EUR 47.2 million or 37.4% of total assets, and non-current assets EUR 79.0 million or 62.6% of total assets. The liabilities amounted to EUR 17.0 million and equity to EUR 109.2 million. The largest liabilities included suppliers payables and advances (5.0 m€), tax liabilities (4.3 m€) and payables to employees (3.9 m€).

Investments

In the 12 months of 2014, the Group’s expenditures on property, plant and equipment totalled EUR 18.3 million (+4.0 m€, +28.0%), of which EUR 6.4 million was invested into new gaming equipment (-0.5m€, -7.2%) and EUR 11.2 million (+4.6 m€, +69.7%) into construction of hotel and construction and reconstruction of casinos.

Cash flows

In the 12 months of 2014, the Group’s cash flows generated from operating activities amounted to EUR 32.5 million (-0.7 m€, -2.1%) and cash flows used in investing activities to EUR -22.9 million (-16.1 m€). Financing cash flows amounted to EUR    -14.1 million (+3.7 mln eurot, +26.6%). Net cash flows totalled EUR ‑4.5 million (-13.1 m€).

Staff

As at 31 December 2014, the Group employed 2,665 people, up by 150 y-o-y mostly due to expansion in Italy and Lithuania.

In the 12 months of 2014, total personnel expenses amounted to EUR 39.0 million (+3.1 m€, +8.7%). In the 12 months of 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 793 thousand (823 thousand in the 12 months of 2013) and EUR 151 thousand (EUR 157 thousand in the 12 months of 2013), respectively.

 

Consolidated statement of financial position

(EUR thousands) 31.12.2014 31.12.2013
ASSETS    
Current assets    
Cash and cash equivalents 40,117 44,582
Financial investments 1,108 1,086
Receivables and prepayments 3,276 2,946
Prepaid income tax 483 357
Inventories 1,163 1,001
Assets held for sale 1,016 0
Total current assets 47,163 49,972
     
Non-current assets    
Deferred tax assets 1,398 1,077
Financial investments 4,277 3,396
Other long-term receivables 688 670
Investment property 292 1,784
Property, plant and equipment 34,368 26,513
Intangible assets 38,045 34,865
Total non-current assets 79,068 68,305
     
TOTAL ASSETS 126,231 118,277
     
     
LIABILITIES AND EQUITY    
Current liabilities    
Borrowings 253 240
Trade and other payables 13,121 13,494
Income tax payable 741 776
Provisions 1,424 1,181
Total current liabilities 15,539 15,691
     
Non-current liabilities    
Deferred tax liability 272 246
Borrowings 1,216 369
Total non-current liabilities 1,488 615
     
TOTAL LIABILITIES 17,027 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 -1,420 -1,204
Retained earnings 41,816 36,782
Total equity attributable to equity holders of the parent 103,865 97,555
Non-controlling interest 5,339 4,416
TOTAL EQUITY 109,204 101,971
     
TOTAL LIABILITIES AND EQUITY 126,231 118,277

 

Consolidated statement of comprehensive income

(EUR thousands) Q4 2014 Q4 2013 2014 2013
         
Income from gaming transactions 37,600 37,285 141,077 135,921
Revenue 2,620 2,360 9,236 9,330
Other income 58 287 347 568
Total revenue and income 40,278 39,932 150,660 145,819
         
Cost of materials, goods and services -959 -816 -3,342 -3,044
Other operating expenses -19,421 -18,010 -71,507 -66,826
Staff costs -10,440 -9,875 -38,982 -35,878
Depreciation, amortisation and impairment -4,064 -1,780 -10,344 -7,763
Change in the fair value of investment property -12 -1 -12 -1
Other expenses -365 -333 -678 -524
Total operating expenses -35,261 -30,815 -124,865 -114,036
         
Operating profit 5,017 9,117 25,795 31,783
         
Interest income 31 42 89 163
Interest expense -8 -4 -28 -17
Foreign exchange losses 8 -1 3 -59
Other finance income and costs -2 -1 -4 -623
Total finance income and costs 29 36 60 -536
         
Profit from operating activities 5,046 9,153 25,855 31,247
         
Income tax expense -532 -1,444 -3,426 -4,323
Net profit for the period 4,514 7,709 22,429 26,924
Attributable to equity holders of the parent company 4,376 7,402 21,597 25,694
Attributable to non-controlling interest 138 307 832 1,230
         
         
Other comprehensive income        
Currency translation differences -323 83 -216 -504
Total comprehensive profit for the period 4,191 7,792 22,213 26,420
Attributable to equity holders of the parent company 4,053 7,485 21,381 25,190
Attributable to non-controlling interest 138 307 832 1,230
         
         
Basic earnings per share* 2.9 4.9 14.2 17.0
Diluted earnings per share* 2.9 4.9 14.2 17.0

* 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_Q4_2014_ENG.pdf 

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