Announcements

OEG consolidated unaudited results for Q2 and 6 months of 2010

Posted on 09.08.2010

OEG: OEG consolidated unaudited results for Q2 and 6 months of 2010

Olympic Entertainment Group         Half Year financial report        09.08.2010

OEG consolidated unaudited results for Q2 and 6 months of 2010

In the 2nd quarter of 2010 the Group was focused on efficiency improvement and  
at the same time was looking for business activity broadening opportunities.    

Significant developments in Q2 2010:                                            

-In June a new (3rd) casino project was started in Slovakia, projected opening 
time is within the last quarter of the year. Revenues of Slovakian segment have 
been growing fastest during this year, the growth composed 23.0% compared to the
1st half year of the last year.                                                 

-The financial results have improved on all of the operational markets, except
of 
Romania, compared both to Q2 2009 and to Q1 2010. In Q2 2010 Estonian and       
Lithuanian segments have also achieved operational profit in addition to Latvian
and Slovakian segments.                                                         

-In June Olympic Online has launched the first Estonian mobile application for 
online casino and poker room, which allows playing various casino games directly
from iPhone and other smart phones.                                             

Extraordinary negative influences:                                              

-In the 2nd quarter the Group has decided to close 3 casinos in order to
improve 
operational efficiency: 1 in Estonia and 2 in Poland. This has caused assets    
impairment, which has influenced Q2 and 6 months 2010 financial results by 11.0 
million kroons (0.7 million euros).                                             

-In addition to casino closures, Group´s Q2 2010 revenue and profit were also 
negatively influenced by large winnings´ payouts in Romania.                    

In Q2 2010 Group´s revenue composed 416.1 million kroons (26.6 million euros),  
in Q2 2009 Group earned 433.4 million kroons (27.7 million euros) of revenue    
from continuing operations. Despite of 4% or 17.3 million kroons (1.1 million   
euros) decline compared to the 2nd quarter last year, the Group has earned an   
EBITDA of 33.0 million kroons (2.1 million euros) in Q2, that is 96.5% more than
within the same period last year from continuing operations (eliminating an     
influence of non-recurring expenses from 2009 Q2 EBIDTA, the quarterly growth   
would compose 21.1 million kroons (1.3 million euros) or 45.8%).                

Operating loss of Q2 2010 was 10.5 million kroons (0.7 million euros), which is 
43.0 million kroons (2.7 million euros) less compared to the same period last   
year. Operating profit before non-recurring expenses in Q2 2010 composed 0.5    
million kroons (0.03 million euros), in Q2 2009 the Group has earned an         
operating loss before non-recurring expenses of 35.7 million kroons (2.3 million
euros).                                                                         


Selected financial data, Q2 2010:                                               
Continuing operations                                                           

--------------------------------------------------------------------------------
| Revenue:                 | 416.1 | million       | (Q2 2009: 433.4)          |
|                          |       | kroons        |                           |
--------------------------------------------------------------------------------
| EBITDA:                  |  67.1 | million       | (Q2 2009:  34.2)          |
|                          |       | kroons        |                           |
--------------------------------------------------------------------------------
| EBIT:                    | -10.5 | million       | (Q2 2009: -53.5)          |
|                          |       | kroons        |                           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income and     |  -1.8 | million       | (Q2 2009:  -3.0)          |
| expenses net:            |       | kroons        |                           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net loss before income   | -12.3 | million       | (Q2 2009: -56.5)          |
| tax:                     |       | kroons        |                           |
--------------------------------------------------------------------------------

1 EUR = 15.6466 EEK                                                             

In the first half of 2010 the Group has earned 822.0 million kroons (52.5       
million euros) of consolidated sales revenue and 828.0 million kroons (52.9     
million euros) of total revenue, which is 4.2% less than 863.9 million kroons   
(55.2 million euros) total revenue earned from continuing operations in the     
first half of 2009. Group´s EBITDA has grown from 30.4 million kroons (1.9      
million euros) earned from continuing operations in the first 6 months of 2009  
to 135.9 million kroons (8.7 million euros) earned in the first half of the     
current year and operating loss decreased responsively from 141.5 million kroons
(9.0 million euros) to 8.9 million kroons (0.6 million euros).                  

Selected financial data 2010, 6 months 2010:                                    
Continuing operations                                                           

--------------------------------------------------------------------------------
| Revenue:                 | 828.0 | million       | (6 months 2009: 863.9)    |
|                          |       | kroons        |                           |
--------------------------------------------------------------------------------
| EBITDA:                  | 135.9 | million       | (6 months 2009:  30.4)    |
|                          |       | kroons        |                           |
--------------------------------------------------------------------------------
| EBIT:                    | -8.9  | million       | (6 months 2009:-141.5)    |
|                          |       | kroons        |                           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Financial income and     |  -4.8 | million       | (6 months 2009:  -1.9)    |
| expenses net:            |       | kroons        |                           |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Net loss before income   | -13.7 | million       | (6 months 2009:-143.4)    |
| tax:                     |       | kroons        |                           |
--------------------------------------------------------------------------------

1 EUR = 15.6466 EEK                                                             

In the first half of 2010 and 2009 93% of consolidated revenue was formed by    
gaming operations and 7% of other income.                                       


External revenue by segments                                                    

--------------------------------------------------------------------------------
| (thousands EEK) |   6 months | Growth | Proportion|    6 months | Proportion |
|                 |       2010 |        |           |        2009 |            |
--------------------------------------------------------------------------------
| Estonia         |    201,166 |   7.1% |     24.3% |     187,846 |      21.7% |
--------------------------------------------------------------------------------
| Latvia          |    176,707 |  -6.2% |     21.3% |     188,299 |      21.8% |
--------------------------------------------------------------------------------
| Lithuania       |    133,277 | -15.8% |     16.1% |     158,315 |      18.3% |
--------------------------------------------------------------------------------
| Belarus         |     22,545 |   9.1% |      2.7% |      20,658 |       2.4% |
--------------------------------------------------------------------------------
| Poland          |    207,981 |  -8.0% |     25.1% |     225,995 |      26.2% |
--------------------------------------------------------------------------------
| Romania         |     21,435 | -28.5% |      2.6% |      29,992 |       3.5% |
--------------------------------------------------------------------------------
| Slovakia        |     64,899 |  23.0% |      7.9% |      52,760 |       6.0% |
--------------------------------------------------------------------------------
| Total           |    828,010 |  -4.2% |    100.0% |     863,865 |     100.0% |
--------------------------------------------------------------------------------

1 EUR = 15.6466 EEK                                                             

At the end of the first half of 2010, Group operated 64 casinos with a total    
area of 25,409 m². At the end of June 2009 Group had 86 casinos with a total    
area of 30,376 m². During the first half of 2010 1 casino in Estonia and 2      
casinos in Poland were closed.                                                  

--------------------------------------------------------------------------------
| Number of casinos by segments                        |                       |
|                                                      |                       |
--------------------------------------------------------------------------------
|                                  |        30.06.2010 |            30.06.2009 |
--------------------------------------------------------------------------------
| Estonia                          |                17 |                    23 |
--------------------------------------------------------------------------------
| Latvia                           |                21 |                    26 |
--------------------------------------------------------------------------------
| Lithuania                        |                10 |                    15 |
--------------------------------------------------------------------------------
| Belarus                          |                 5 |                     5 |
--------------------------------------------------------------------------------
| Poland                           |                 7 |                     9 |
--------------------------------------------------------------------------------
| Romania                          |                 2 |                     6 |
--------------------------------------------------------------------------------
| Slovakia                         |                 2 |                     2 |
--------------------------------------------------------------------------------
| Total                            |                64 |                    86 |
--------------------------------------------------------------------------------


Group consolidated expenses before depreciation and impairment in the 1st half  
of 2010 have decreased 17.0% or 141.4 million kroons (9.0 million euros)        
compared to the expenses from continuing operations in the 1st half of 2009,    
including decrease of Q2 expenses by 12.6% or 50.3 million kroons (3.2 million  
euros) compared to the same period a year ago.  The strongest decline compared  
to the 1st half of 2009 came from personnel expenses 20.1% or 57.7 million      
kroons (3.7 million euros), rental expenses 24.8% or 27.5 million kroons (1.8   
million euros) and gaming tax expenses 6.9% or 14.2 million kroons (0.9 million 
euros).                                                                         

The largest Group expense article before depreciation and impairment is         
personnel expenses including social charges of 229.8 million kroons (14.7       
million euros), followed by gaming tax expenses of 193.0 million kroons (12.3   
million euros), rental expenses of 83.3 million kroons (5.3 million euros) and  
marketing expenses of 68.0 million kroons (4.3 million euros).                  

Group´s operating loss amounted to 8.9 million kroons (0.6 million euros), in   
the same period of 2009 operating loss from continuing operations totalled 141.5
million kroons (9.0 million euros). Consolidated net loss equalled 19.2 million 
kroons (1.2 million euros). In the 1st half of 2009 consolidated net loss from  
continuing operations amounted to 142.2 million kroons (9.1 million euros).     


Estonian segment                                                                

In the 1st half of 2010 the segment external revenue amounted to 201.2 million  
kroons (12.9 million euros), including landbase gaming revenue of 171.7 million 
kroons (11.0 million euros), online gaming revenue of 9.7 million kroons (0.6   
million euros) and other revenue of 19.8 million kroons (1.3 million euros).    

Estonian segment external revenue has grown 7.1% compared to the same period    
last year. Decline of the Estonian gaming market in the 1st half of 2010        
compared to the same period last year composed 6%. Olympic Casino Eesti AS      
market share on Estonian gaming market at the end of June 2010 composed 52%, at 
the end of 1st half of 2009 Olympic Casino Eesti AS market share amounted to    
47%.                                                                            

Estonian segment 2010 H1 EBITDA equalled 33.2 million kroons (2.1 million euros)
and operating loss amounted to 2.6 million kroons (0.2 million euros). In the   
1st half of 2009 Estonian segment has earned an EBIDTA of -18.4 million kroons  
(-1.2 million euros) and operating loss of 66.1 million kroons (4.2 million     
euros).                                                                         

At the end of June, there were 17 Olympic Casinos in Estonia with a total of 700
slot machines and 19 game tables.                                               


Latvian segment                                                                 

In the 1st half of 2010 Latvian segment external revenue amounted to 176.7      
million kroons (11.3 million euros), including gaming revenue of 162.4 million  
kroons (10.4 million euros) and other revenue of 14.3 million kroons (0.9       
million euros). Latvian segment external revenue has decreased 6.2% compared to 
the same period last year. The decline of the gaming market in Latvia in the 1st
half of 2010 composed 24% compared to the same period last year. At the end of  
June 2010 Olympic Casino Latvia SIA market share on the Latvian gaming market   
composed 19%, at the end of the 1st half of 2009 Olympic Casino Latvia SIA      
market share was 13%.                                                           

Latvian segment EBITDA for the 1st half of 2010 equalled 56.7 million kroons    
(3.6 million euros) and operating profit amounted to 24.2 million kroons (1.5   
million euros). In the 1st half of 2009 Latvian segment has earned an EBITDA of 
25.2 million kroons (1.6 million euros) and operating loss of 27.0 million      
kroons (1.7 million euros).                                                     

At the end of the June 2010 there were 21 Olympic casinos in Latvia with a total
of 651 slot machines and 18 game tables.                                        


Lithuanian segment                                                              

Lithuanian segment has finished the 1st half of 2010 with an external revenue of
133.3 million kroons (8.5 million euros), including gaming revenue of 125.6     
million kroons (8.0 million euros) and other revenue of 7.7 million kroons (0.5 
million euros). Lithuanian segment external revenue has decreased by 15.8%      
compared to the same period last year. Decline of the gaming market in Lithuania
in the 1st half of 2010 totalled 25% in comparison with the 1st half of 2009. At
the end of June 2010 Olympic Casino Group Baltija UAB market share on Lithuanian
gaming market has grown up to 71%, at the end of June 2009 Olympic Casino Group 
Baltija UAB market share was 62%.                                               

Lithuanian segment EBITDA in the 1st half of 2010 amounted to 22.7 million      
kroons (1.5 million euros) and operating profit equalled 4.9 million kroons (0.3
million euros). In the 1st 6 months of 2009 Lithuanian segment has earned an    
EBITDA of 18.5 million kroons (1.2 million euros) and operating loss of 2.6     
million kroons (0.2 million euros).                                             

At the end of June there were 10 Olympic casinos in Lithuania with a total of   
350 slot machines and 50 game tables.                                           


Belarus segment                                                                 

Belarus segment external revenue for the 1st half of 2010 amounted to 22.5      
million kroons (1.4 million euros), including gaming revenue of 20.3 million    
kroons (1.3 million euros) and other revenue of 2.2 million kroons (0.1 million 
euros). Belarus segment external revenue has grown 9.1% compared to the same    
period a year ago.                                                              

Belarus segment EBITDA for the 1st 6 months of 2010 totalled 5.2 million kroons 
(0.3 million euros) and operating loss equalled 1.9 million kroons (0.1 million 
euros). In the 1st half of 2009 Belarus segment has earned an EBITDA of 1.7     
million kroons (0.1 million euros) and operating loss of 5.7 million kroons (0.4
million euros).                                                                 

At the end of June 2010, 5 Olympic Casinos were operating in Belarus with a     
total of 246 slot machines.                                                     


Polish segment                                                                  

Polish segment has finished the 1st half of 2010 with an external revenue of    
208.0 million kroons (13.3 million euros), including gaming revenue of 203.5    
million kroons (13.0 million euros) and other revenue of 4.5 million kroons (0.3
million euros). External revenue of the Polish segment has decreased by 8.0%    
compared to the same period last year.                                          

Polish segment 2010 6 months EBIDTA totalled 21.8 million kroons (1.4 million   
euros) and operating loss was 16.2 million kroons (1.0 million euros). Operating
loss includes 11.0 million kroons (0.7 million euros) of assets impairment      
expenses connected with closure of 2 casinos. In the 1 half of 2009 Polish      
segment has earned an EBITDA of 16.4 million kroons (1.0 million euros) and     
operating loss of 8.5 million kroons (0.5 million euros).                       

During the 1st half of 2010 1 casino was reopened and 2 casinos were closed in  
Poland. At the end of June there were 7 Olympic casinos in Poland with a total  
of 338 slot machines and 46 game tables.                                        


Romanian segment                                                                

In the 1st half of 2010 Romanian segment external revenue equalled 21.4 million 
kroons (1.4 million euros), including gaming revenue of 15.1 million kroons (1.0
million euros) and other revenue of 6.3 million kroons (0.4 million euros).     
Romanian segment external revenue has declined by 28.5% compared to the 1st half
of 2009 being influenced by the overall decline of Romanian gaming market and   
large winnings´ payouts that have taken place in the 2nd quarter of 2010.       

Romanian segment EBITDA for the 1st half of 2010 composed -15.4 million kroons  
(-1.0 million euros) and operating loss was 22.8 million kroons (1.5 million    
euros). During the 1st 6 months of 2009 Romanian segment has earned an EBITDA of
-17.5 million kroons (-1.1 million euros) and operating loss of 29.7 million    
kroons (1.9 million euros).                                                     

At the end of June 2010 there were 2 Olympic casinos operating in Romania with a
total of 88 slot machines and 13 game tables.                                   


Slovakian segment                                                               

In the 1st half of 2010 Slovakian segment has earned 64.9 million kroons (4.1   
million euros) of external revenue, including gaming revenue of 58.3 million    
kroons (3.7 million euros) and other revenue of 6.6 million kroons (0.4 million 
euros). Slovakian segment external revenue has grown by 23.0% compared to the   
1st half of 2009.                                                               

Slovakian segment EBITDA for the 1st half of 2010 amounted to 11.8 million      
kroons (0.8 million euros) and operating profit was 5.4 million kroons (0.3     
million euros). In the 1st half of 2009 Slovakian segment has earned an EBITDA  
of 4.5 million kroons (0.3 million euros) and operating loss of 1.9 million     
kroons (0.1 million euros).                                                     

At the end of June 2010 there were 2 Olympic casinos operating in Slovakia with 
a total of 102 slot machines and 22 game tables.                                


Financial position                                                              

At June 30th 2010, the consolidated balance sheet of Group totaled 1,642.5      
million kroons (105.0 million euros). At 31st December 2009, the consolidated   
balance sheet of Group amounted to 1,776.0 million kroons (113.5 million euros).
Balance sheet volume has decreased by 7.5% within the 1st half of the year,     
which is mostly connected with loan repayment.                                  

Current assets accounted for 498.6 million kroons (31.9 million euros) or 30.4% 
of total assets and non-current assets for 1,143.9 million kroons (73.1 million 
euros) or 69.6% of total assets. Intangible assets accounted for 447.3 million  
kroons (28.6 million euros) or 39.1% non-current assets.                        

At 30th June 2010 Group´s liabilities amounted to 368.3 million kroons (23.5    
million euros) and consolidated equity totalled 1,274.3 million kroons (81.4    
million euros). The largest part of Group´s liabilities were loans in amount of 
170.2 million kroons (10.9 million euros), tax commitments of 52.9 million      
kroons (3.4 million euros) and payables to employees of 46.9 million kroons (3.0
million euros).                                                                 


Investments                                                                     

In the 1st half of 2010 Group´s investments into tangible assets amounted to    
37.3 million kroons (2.4 million euros), including 33.6 million kroons (2.1     
million euros) invested into new gaming equipment. Investment into intangible   
assets within the 1st 6 months of 2010 equalled 4.2 million kroons (0.3 million 
euros).                                                                         

In the 1st half of 2009 a total of 61.5 million kroons (3.9 million euros) was  
invested into tangible and intangible fixed assets. The major part of           
investments was connected with the flagship casino opened in Romanian capital   
Bucharest and the opening of the second casino in Slovakia.                     


Cash flows                                                                      

Group´s operational cash flows during the 1st half of 2010 were 109.5 million   
kroons (7.0 million euros). Cash flows from investing activities were 36.9      
million kroons (2.4 million euros) and cash outflows from financing activities  
were 124.5 million kroons (8.0 million euros). Net cash flows amounted to 21.9  
million kroons (1.4 million euros).                                             

Group´s operational cash flows in the 1st half of 2009 were 27.4 million kroons 
(1.8 million euros). Cash outflows from investing activities composed 120.6     
million kroons (7.7 million euros) and cash flows from financing activities were
33.7 million kroons (2.2 million euros). Net cash outflows were 59.5 million    
kroons (3.8 million euros).                                                     



People                                                                          

At June 30th 2010, the Group employed 2,166 people (30.06.2009 excluding        
Ukraine: 2,689): 453 in Estonia, 486 in Latvia, 514 in Lithuania, 86 in Belarus,
365 in Poland, 141 in Romania and 121 in Slovakia.                              

Employee remuneration expenses including social charges in the 1st half of 2010 
amounted to 229.8 million kroons (14.7 million euros); last year the relevant   
figure was 287.5 million kroons (18.4 million euros).                           

The Group's key financials                                                      
Continuing operations                                                           
--------------------------------------------------------------------------------
|                                    |    6 months |    6 months |      Change |
|                                    |        2010 |        2009 |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue (million kroons)           |       828.0 |       863.9 |       -4.2% |
--------------------------------------------------------------------------------
| EBITDA (million kroons)            |       135.9 |        30.4 |      347.4% |
--------------------------------------------------------------------------------
| Operating loss (million kroons)    |        -8.9 |      -141.5 |      -93.7% |
--------------------------------------------------------------------------------
| Net loss (million kroons)          |       -19.2 |      -142.2 |      -86.5% |
--------------------------------------------------------------------------------
| EBITDA margin                      |       16.4% |        3.5% |             |
--------------------------------------------------------------------------------
| Operating margin                   |       -1.1% |      -16.4% |             |
--------------------------------------------------------------------------------
| Net margin                         |       -2.3% |      -16.5% |             |
--------------------------------------------------------------------------------
| Equity ration                      |       77.6% |       74.2% |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of casinos at the end of    |          64 |          86 |         -22 |
| the period                         |             |             |             |
--------------------------------------------------------------------------------
| Total area of casinos m2 at the    |      25,409 |      30,376 |      -4,967 |
| end of the period                  |             |             |             |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of slots at the end of the  |       2,475 |       3,037 |        -562 |
| period                             |             |             |             |
--------------------------------------------------------------------------------
| Number of game tables at the end   |         168 |         209 |         -41 |
| of the period                      |             |             |             |
--------------------------------------------------------------------------------


Underlying formulas                                                             


o EBITDA = earnings before financial expenses, taxes, depreciation, amortization
and impairment losses                                                           
o Operating profit = profit before financial expenses and taxes                 
o Net profit = net profit for the period before minority interest               
o EBITDA margin = EBITDA / revenue                                              
o Operating margin = operating profit / revenue                                 
o Net margin = net profit / revenue                                             
o Equity ratio = equity / total assets                                          

1 EUR = 15.6466 EEK                                                             


CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                    

--------------------------------------------------------------------------------
| ASSETS                   |    (In thousands of     |  (In thousands of euro) |
|                          |    Estonian kroons)     |                         |
--------------------------------------------------------------------------------
|                          | 30.06.2010|  31.12.2009 | 30.06.2010|  31.12.2009 |
|                          |           |             |           |             |
--------------------------------------------------------------------------------
| Current assets           |           |             |           |             |
--------------------------------------------------------------------------------
| Cash and cash            |   308,936 |     286,067 |    19,745 |      18,283 |
| equivalents              |           |             |           |             |
--------------------------------------------------------------------------------
| Financial investments    |    54,639 |      48,184 |     3,492 |       3,080 |
--------------------------------------------------------------------------------
| Trade receivables        |     9,742 |       5,473 |       623 |         350 |
--------------------------------------------------------------------------------
| Other receivables and    |    76,563 |      73,977 |     4,893 |       4,728 |
| prepayments              |           |             |           |             |
--------------------------------------------------------------------------------
| Prepaid income tax       |    17,923 |      23,437 |     1,145 |       1,498 |
--------------------------------------------------------------------------------
| Inventories              |    14,633 |      14,068 |       935 |         899 |
--------------------------------------------------------------------------------
| Non-current assets held  |    16,144 |      17,833 |     1,032 |       1,140 |
| for sale                 |           |             |           |             |
--------------------------------------------------------------------------------
| Total current assets     |   498,580 |     469,039 |    31,865 |      29,978 |
--------------------------------------------------------------------------------
| Non-current assets       |           |             |           |             |
--------------------------------------------------------------------------------
| Deferred tax assets      |    25,192 |      21,395 |     1,610 |       1,367 |
--------------------------------------------------------------------------------
| Financial investments    |    14,412 |      61,405 |       921 |       3,924 |
--------------------------------------------------------------------------------
| Other long-term          |    16,788 |      15,983 |     1,073 |       1,021 |
| receivables              |           |             |           |             |
--------------------------------------------------------------------------------
| Investment property      |    22,688 |      23,658 |     1,450 |       1,512 |
--------------------------------------------------------------------------------
| Property, plant and      |   617,584 |     733,757 |    39,471 |      46,896 |
| equipment                |           |             |           |             |
--------------------------------------------------------------------------------
| Intangible assets        |   447,285 |     450,778 |    28,587 |      28,810 |
--------------------------------------------------------------------------------
| Total non-current assets | 1,143,949 |   1,306,976 |    73,112 |      83,530 |
--------------------------------------------------------------------------------
| TOTAL ASSETS             | 1,642,529 |   1,776,015 |   104,977 |     113,508 |
--------------------------------------------------------------------------------
|                          |           |             |           |             |
--------------------------------------------------------------------------------
|                          |           |             |           |             |
--------------------------------------------------------------------------------
| LIABILITIES AND EQUITY   |    (In thousands of     |  (In thousands of euro) |
|                          |    Estonian kroons)     |                         |
--------------------------------------------------------------------------------
|                          | 30.06.2010|  31.12.2009 | 30.06.2010|  31.12.2009 |
|                          |           |             |           |             |
--------------------------------------------------------------------------------
| LIABILITIES              |           |             |           |             |
--------------------------------------------------------------------------------
| Current liabilities      |           |             |           |             |
--------------------------------------------------------------------------------
| Borrowings               |    48,641 |      88,145 |     3,109 |       5,633 |
--------------------------------------------------------------------------------
| Customer advances        |    20,631 |      16,252 |     1,319 |       1,039 |
--------------------------------------------------------------------------------
| Trade payables           |    37,438 |      27,513 |     2,393 |       1,758 |
--------------------------------------------------------------------------------
| Other payables           |     2,795 |       2,896 |       178 |         185 |
--------------------------------------------------------------------------------
| Income tax payable       |     4,195 |         298 |       268 |          19 |
--------------------------------------------------------------------------------
| Other tax liabilities    |    48,694 |      48,695 |     3,112 |       3,112 |
--------------------------------------------------------------------------------
| Other accrued payables   |    59,282 |      54,774 |     3,789 |       3,501 |
--------------------------------------------------------------------------------
| Provisions               |    17,543 |      17,947 |     1,121 |       1,147 |
--------------------------------------------------------------------------------
| Total current            |   239,219 |     256,520 |    15,289 |      16,394 |
| liabilities              |           |             |           |             |
--------------------------------------------------------------------------------
| Non-current liabilities  |           |             |           |             |
--------------------------------------------------------------------------------
| Deferred tax liability   |     7,196 |       4,723 |       460 |         302 |
--------------------------------------------------------------------------------
| Borrowings               |   121,844 |     221,032 |     7,787 |      14,127 |
--------------------------------------------------------------------------------
| Total non-current        |   129,040 |     225,755 |     8,247 |      14,429 |
| liabilities              |           |             |           |             |
--------------------------------------------------------------------------------
| Total liabilities        |   368,259 |     482,275 |    23,536 |      30,823 |
--------------------------------------------------------------------------------
| EQUITY                   |           |             |           |             |
--------------------------------------------------------------------------------
| Share capital            | 1,510,000 |   1,510,000 |    96,507 |      96,507 |
--------------------------------------------------------------------------------
| Share premium            |   227,273 |     227,273 |    14,525 |      14,525 |
--------------------------------------------------------------------------------
| Statutory reserve        |    37,759 |      37,759 |     2,413 |       2,413 |
| capital                  |           |             |           |             |
--------------------------------------------------------------------------------
| Translation reserves     |        99 |         390 |         6 |          25 |
--------------------------------------------------------------------------------
| Retained earnings        |  -562,729 |    -545,450 |   -35,965 |     -34,861 |
--------------------------------------------------------------------------------
| Total equity             | 1,212,402 |   1,229,972 |    77,486 |      78,609 |
| attributable to          |           |             |           |             |
| equity                   |           |             |           |             |
| holders of the           |           |             |           |             |
| parent                   |           |             |           |             |
--------------------------------------------------------------------------------
| Minority interest        |    61,868 |      63,768 |     3,955 |       4,076 |
--------------------------------------------------------------------------------
| Total equity             | 1,274,270 |   1,293,740 |    81,441 |      82,685 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND    | 1,642,529 |   1,776,015 |   104,977 |     113,508 |
| EQUITY                   |           |             |           |             |
--------------------------------------------------------------------------------


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                                  

--------------------------------------------------------------------------------
| (In thousands of Estonian   |          |          |           |              |
| kroons)                     |          |          |           |              |
--------------------------------------------------------------------------------
|                             |  Q2 2010 |  Q2 2009 |   6M 2010 |      6M 2009 |
--------------------------------------------------------------------------------
| Continuing operations       |          |          |           |              |
--------------------------------------------------------------------------------
| Revenue and income          |          |          |           |              |
--------------------------------------------------------------------------------
| Income from gaming          |  383,638 |  403,025 |   766,496 |      805,889 |
| transactions                |          |          |           |              |
--------------------------------------------------------------------------------
| Revenue                     |   29,349 |   28,080 |    55,514 |       53,872 |
--------------------------------------------------------------------------------
| Other income                |    3,138 |    2,300 |     6,000 |        4,104 |
--------------------------------------------------------------------------------
| Total revenue and income    |  416,125 |  433,405 |   828,010 |      863,865 |
--------------------------------------------------------------------------------
|                             |          |          |           |              |
--------------------------------------------------------------------------------
| Expenses                    |          |          |           |              |
--------------------------------------------------------------------------------
| Cost of materials, goods    |  -11,134 |  -12,785 |   -20,562 |      -24,623 |
| and services                |          |          |           |              |
--------------------------------------------------------------------------------
| Other operating expenses    | -221,279 | -245,583 |  -440,021 |     -505,908 |
--------------------------------------------------------------------------------
| Personnel expenses          | -115,473 | -135,248 |  -229,783 |     -287,505 |
--------------------------------------------------------------------------------
| Depreciation, amortisation  |  -77,660 |  -87,704 |  -144,840 |     -171,861 |
| and impairment losses       |          |          |           |              |
--------------------------------------------------------------------------------
| Other expenses              |   -1,094 |   -5,628 |    -1,725 |      -15,461 |
--------------------------------------------------------------------------------
| Total expenses              | -426,640 | -486,948 |  -836,931 |   -1,005,358 |
--------------------------------------------------------------------------------
| Operating loss              |  -10,515 |  -53,543 |    -8,921 |     -141,493 |
--------------------------------------------------------------------------------
| Financial income and        |          |          |           |              |
| expenses                    |          |          |           |              |
--------------------------------------------------------------------------------
| Interest income             |    1,065 |    2,456 |     2,083 |        5,326 |
--------------------------------------------------------------------------------
| Interest expense            |   -2,650 |   -5,417 |    -6,311 |      -10,828 |
--------------------------------------------------------------------------------
| Foreign exchange loss       |       96 |       12 |      -167 |        3,709 |
--------------------------------------------------------------------------------
| Other financial income and  |     -340 |      -24 |      -371 |          -74 |
| expenses                    |          |          |           |              |
--------------------------------------------------------------------------------
| Total financial income and  |   -1,829 |   -2,973 |    -4,766 |       -1,867 |
| expenses                    |          |          |           |              |
--------------------------------------------------------------------------------
|                             |          |          |           |              |
--------------------------------------------------------------------------------
| Loss before tax             |  -12,344 |  -56,516 |   -13,687 |     -143,360 |
--------------------------------------------------------------------------------
| Income tax expense          |   -5,272 |    1,576 |    -5,492 |        1,207 |
--------------------------------------------------------------------------------
| NET LOSS FROM CONTINUING    |  -17,616 |  -54,940 |   -19,179 |     -142,153 |
| OPERATIONS FOR THE PERIOD   |          |          |           |              |
--------------------------------------------------------------------------------
|                             |          |          |           |              |
--------------------------------------------------------------------------------
| NET LOSS FROM DISCONTINUED  |        0 | -200,555 |         0 |     -210,792 |
| OPERATIONS FOR THE PERIOD   |          |          |           |              |
--------------------------------------------------------------------------------
|                             |          |          |           |              |
--------------------------------------------------------------------------------
| NET LOSS FOR THE PERIOD     |  -17,616 | -255,495 |   -19,179 |     -352,945 |
--------------------------------------------------------------------------------
|                             |          |          |           |              |
--------------------------------------------------------------------------------
| Other comprehensive income  |          |          |           |              |
| (loss)                      |          |          |           |              |
--------------------------------------------------------------------------------
| Currency translation        |          |          |           |              |
| differences                 |          |          |           |              |
--------------------------------------------------------------------------------
|     continuing operations   |  -23,261 |   16,032 |      -291 |      -34,040 |
--------------------------------------------------------------------------------
|     discontinued operations |        0 |   -1,130 |         0 |       10,210 |
--------------------------------------------------------------------------------
| Total other comprehensive   |  -23,261 |   14,902 |      -291 |      -23,830 |
| income (loss)               |          |          |           |              |
--------------------------------------------------------------------------------
| Total comprehensive loss    |  -40,877 | -240,593 |   -19,470 |     -376,775 |
| for the period              |          |          |           |              |
--------------------------------------------------------------------------------
|                             |          |          |           |              |
--------------------------------------------------------------------------------
| Net loss for the period     |          |          |           |              |
--------------------------------------------------------------------------------
| Minority interest           |   -5,714 |     -261 |    -1,900 |       -1,270 |
--------------------------------------------------------------------------------
| Attributable to equity      |          |          |           |              |
| owners of the parent        |          |          |           |              |
--------------------------------------------------------------------------------
|     continuing operations   |  -11,902 |  -54,679 |   -17,279 |     -140,883 |
--------------------------------------------------------------------------------
|     discontinued operations |        0 | -200,555 |         0 |     -210,792 |
--------------------------------------------------------------------------------
|                             |  -17,616 | -255,495 |   -19,179 |     -352,945 |
--------------------------------------------------------------------------------
| Total comprehensive loss    |          |          |           |              |
| for the period              |          |          |           |              |
--------------------------------------------------------------------------------
| Minority interest           |   -5,714 |     -261 |    -1,900 |       -1,270 |
--------------------------------------------------------------------------------
| Attributable to equity      |          |          |           |              |
| owners of the parent        |          |          |           |              |
--------------------------------------------------------------------------------
|     continuing operations   |  -35,163 |  -38,647 |   -17,570 |     -174,923 |
--------------------------------------------------------------------------------
|     discontinued operations |        0 | -201,685 |         0 |     -200,582 |
--------------------------------------------------------------------------------
|                             |  -40,877 | -240,593 |   -19,470 |     -376,775 |
--------------------------------------------------------------------------------
| Continuing operations       |          |          |           |              |
--------------------------------------------------------------------------------
| Basic loss per share        |    -0.08 |    -0.36 |     -0.11 |        -0.93 |
--------------------------------------------------------------------------------
| Diluted loss per share      |    -0.08 |    -0.36 |     -0.11 |        -0.93 |
--------------------------------------------------------------------------------
|                             |          |          |           |              |
--------------------------------------------------------------------------------
| Discontinued operations     |          |          |           |              |
--------------------------------------------------------------------------------
| Basic earnings (loss) per   |     0.00 |    -1.33 |      0.00 |        -1.40 |
| share                       |          |          |           |              |
--------------------------------------------------------------------------------
| Diluted earnings (loss) per |     0.00 |    -1.33 |      0.00 |        -1.40 |
| share                       |          |          |           |              |
--------------------------------------------------------------------------------


--------------------------------------------------------------------------------
| (In thousands of euro)     |         |         |               |             |
--------------------------------------------------------------------------------
|                            | Q2 2010 | Q2 2009 |       6M 2010 |     6M 2009 |
--------------------------------------------------------------------------------
| Continuing operations      |         |         |               |             |
--------------------------------------------------------------------------------
| Revenue and income         |         |         |               |             |
--------------------------------------------------------------------------------
| Income from gaming         |  24,519 |  25,758 |        48,988 |      51,506 |
| transactions               |         |         |               |             |
--------------------------------------------------------------------------------
| Revenue                    |   1,876 |   1,795 |         3,548 |       3,443 |
--------------------------------------------------------------------------------
| Other income               |     200 |     147 |           383 |         262 |
--------------------------------------------------------------------------------
| Total revenue and income   |  26,595 |  27,700 |        52,919 |      55,211 |
--------------------------------------------------------------------------------
|                            |         |         |               |             |
--------------------------------------------------------------------------------
| Expenses                   |         |         |               |             |
--------------------------------------------------------------------------------
| Cost of materials, goods   |    -712 |    -817 |   -1,314 |           -1,574 |
| and services               |         |         |          |                  |
--------------------------------------------------------------------------------
| Other operating expenses   | -14,142 | -15,696 |  -28,122 |          -32,333 |
--------------------------------------------------------------------------------
| Personnel expenses         |  -7,380 |  -8,644 |  -14,686 |          -18,375 |
--------------------------------------------------------------------------------
| Depreciation, amortisation |  -4,963 |  -5,605 |   -9,257 |          -10,984 |
| and impairment losses      |         |         |          |                  |
--------------------------------------------------------------------------------
| Other expenses             |     -70 |    -360 |     -110 |             -988 |
--------------------------------------------------------------------------------
| Total expenses             | -27,267 | -31,122 |  -53,489 |          -64,254 |
--------------------------------------------------------------------------------
| Operating loss             |    -672 |  -3,422 |     -570 |           -9,043 |
--------------------------------------------------------------------------------
| Financial income and       |         |         |          |                  |
| expenses                   |         |         |          |                  |
--------------------------------------------------------------------------------
| Interest income            |      68 |     157 |      133 |              340 |
--------------------------------------------------------------------------------
| Interest expense           |    -169 |    -346 |     -403 |             -692 |
--------------------------------------------------------------------------------
| Foreign exchange loss      |       6 |       1 |      -11 |              238 |
--------------------------------------------------------------------------------
| Other financial income and |     -22 |      -2 |      -23 |               -5 |
| expenses                   |         |         |          |                  |
--------------------------------------------------------------------------------
| Total financial income and |    -117 |    -190 |     -304 |             -119 |
| expenses                   |         |         |          |                  |
--------------------------------------------------------------------------------
|                            |         |         |          |                  |
--------------------------------------------------------------------------------
| Loss before tax            |    -789 |  -3,612 |     -874 |           -9,162 |
--------------------------------------------------------------------------------
| Income tax expense         |    -337 |     101 |     -351 |               77 |
--------------------------------------------------------------------------------
| NET LOSS FROM CONTINUING   |  -1,126 |  -3,511 |   -1,225 |           -9,085 |
| OPERATIONS FOR THE PERIOD  |         |         |          |                  |
--------------------------------------------------------------------------------
|                            |         |         |          |                  |
--------------------------------------------------------------------------------
| NET LOSS FROM DISCONTINUED |       0 | -12,818 |        0 |          -13,472 |
| OPERATIONS FOR THE PERIOD  |         |         |          |                  |
--------------------------------------------------------------------------------
|                            |         |         |          |                  |
--------------------------------------------------------------------------------
| NET LOSS FOR THE PERIOD    |  -1,126 | -16,329 |   -1,225 |          -22,557 |
--------------------------------------------------------------------------------
|                            |         |         |          |                  |
--------------------------------------------------------------------------------
| Other comprehensive income |         |         |          |                  |
| (loss)                     |         |         |          |                  |
--------------------------------------------------------------------------------
| Currency translation       |         |         |          |                  |
| differences                |         |         |          |                  |
--------------------------------------------------------------------------------
|     continuing operations  |  -1,487 |   1,025 |      -19 |           -2,176 |
--------------------------------------------------------------------------------
|    discontinued operations |       0 |     -73 |        0 |              653 |
--------------------------------------------------------------------------------
| Total other comprehensive  |  -1,487 |     952 |      -19 |           -1,523 |
| income (loss)              |         |         |          |                  |
--------------------------------------------------------------------------------
| Total comprehensive loss   |  -2,613 | -15,377 |   -1,244 |          -24,080 |
| for the period             |         |         |          |                  |
--------------------------------------------------------------------------------
|                            |         |         |          |                  |
--------------------------------------------------------------------------------
| Net loss for the period    |         |         |          |                  |
--------------------------------------------------------------------------------
| Minority interest          |    -365 |     -17 |     -121 |              -81 |
--------------------------------------------------------------------------------
| Attributable to equity     |         |         |          |                  |
| owners of the parent       |         |         |          |                  |
--------------------------------------------------------------------------------
|     continuing operations  |    -761 |  -3,494 |   -1,104 |           -9,004 |
--------------------------------------------------------------------------------
|    discontinued operations |       0 | -12,818 |        0 |          -13,472 |
--------------------------------------------------------------------------------
|                            |  -1,126 | -16,329 |   -1,225 |          -22,557 |
--------------------------------------------------------------------------------
| Total comprehensive loss   |         |         |          |                  |
| for the period             |         |         |          |                  |
--------------------------------------------------------------------------------
| Minority interest          |    -365 |     -17 |      121 |              -81 |
--------------------------------------------------------------------------------
| Attributable to equity     |         |         |          |                  |
| owners of the parent       |         |         |          |                  |
--------------------------------------------------------------------------------
|     continuing operations  |  -2,248 |  -2,470 |   -1,365 |          -11,180 |
--------------------------------------------------------------------------------
|    discontinued operations |       0 | -12,890 |        0 |          -12,820 |
--------------------------------------------------------------------------------
|                            |  -2,613 | -15,377 |   -1,244 |          -24,080 |
--------------------------------------------------------------------------------
| Continuing operations      |         |         |          |                  |
--------------------------------------------------------------------------------
| Basic loss per share       |   -0.01 |   -0.02 |    -0.01 |            -0.06 |
--------------------------------------------------------------------------------
| Diluted loss per share     |   -0.01 |   -0.02 |    -0.01 |            -0.06 |
--------------------------------------------------------------------------------
|                            |         |         |          |                  |
--------------------------------------------------------------------------------
| Discontinued operations    |         |         |          |                  |
--------------------------------------------------------------------------------
| Basic earnings (loss) per  |    0.00 |   -0.08 |     0.00 |            -0.09 |
| share                      |         |         |          |                  |
--------------------------------------------------------------------------------
| Diluted earnings (loss)    |    0.00 |   -0.08 |     0.00 |            -0.09 |
| per share                  |         |         |          |                  |
--------------------------------------------------------------------------------



Additional information:                                                         

Kristi Ojakäär                                                                  
CFO                                                                             
Olympic Entertainment Group AS                                                  
Tel + 372 667 1250                                                              
E-post: kristi.ojakaar@oc.eu                                                    
http://www.olympic-casino.com



1. olympic_interim_ q2_2010_eng.pdf 
(https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=314718)

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