Announcements

OEG: consolidated unaudited results for Q4 and 12m 2012

Posted on 27.02.2013

Key performance indicators of the Group

(in millions of euros)

  12 m 2012 12 m 2011 12 m 2010
Revenue 135.9 127.3 112.5
EBITDA 38.7 32.0 21.1
Operating profit 28.4 16.4 3.1
Net profit 24.2 13.8 1.1
EBITDA margin 28.5% 25.1% 18.8%
Operating margin 20.9% 12.9% 2.8%
Net margin 17.8% 10.9% 1.0%
ROE 29.4% 17.5% 1.4%
ROA 23.0% 13.3% 1.0%
Current ratio 3.5 2.9 2.5
       
Number of casinos at year-end 63 61 66
Casino floor area (m²) at year-end 24,030 24,014 25,802
       
Number of slot machines at the period end 2,594 2,471 2,519
Number of gaming tables at the period end 178 180 182

  

Key developments of the Group during the 12-month period of 2012:

  • The Group’s consolidated net profit totalled EUR 24.2 million. During the 12-month period of 2011, the Group earned a net profit of EUR 13.8 million.
  • The efficiency of the Group’s business operations improved. During the 12-month period of 2012, the Group’s income from gaming transactions and revenues totalled EUR 134.7 million, i.e. 10.0% more than compared to the 12‑month period of 2011. The number of casinos in operation increased by 2 year-over-year.
  • At 27 July 2012, the reduction of share capital of Olympic Entertainment Group AS on the basis adopted by resolution of the General Meeting of Shareholders held at 19 April 2012 was entered in the Commercial Register. The Company’s registered share capital was EUR 81,717,932.70 and the new size of share capital is EUR 60,531,802. The share capital is divided into 151,329,505 ordinary shares with the book value of EUR 0.40 each.
  • Olympic Entertainment Group AS and the Italian company GHolding agreed on 2 August 2012 to jointly set up and operate medium-sized VLT slot casinos in Italy. Both parties own half of the operating company The Box S.r.l.
  • The Group company The Box S.r.l. signed the agreement on 24 October 2012, where it acquired the Jackpot Game S.r.l in Italy, which operates 2 VLT slot casinos.

During 12-month period of 2012, the Group’s consolidated sales revenue totalled EUR 134.7 million and the revenue totalled EUR 135.9 million, which is 6.8% more than the total revenue of EUR 127.3 million earned during the 12-month period of 2011. The Group’s EBITDA increased from EUR 32.0 million during the 12-month period of 2011 to EUR 38.7 million this year. During the 12-month period of 2012 the operating profit totalled EUR 28.4 million, last year the operating profit totalled EUR 16.4 million.

During the 12-month period of 2012, gaming operations accounted for 92.3% and other revenue 7.7% of the Group’s consolidated revenue, the respective percentages for the 12-month period of 2011 were 89.5% and 10.5%.

 

Total external income from gaming transactions and revenue (EUR thousands): 

  Q4 2012 Change Percentage of total Q4 2011 Percentage of total
Estonia 9,506 7.4% 25.5% 8,851 26.3%
Latvia 8,900 2.2% 23.9% 8,706 25.9%
Lithuania 5,624 4.9% 15.1% 5,363 15.9%
Poland 7,395 0.1% 19.8% 7,388 22.0%
Slovakia 4,188 61.0% 11.2% 2,602 7.7%
Belarus 920 24.2% 2.5% 741 2.2%
Italy 730 - 2.0% 0 0.0%
Romania* 0 - 0.0% 0 0.0%
Total 37,263 10.7% 100.0% 33,651 100.0%

 

 

  2012 Change Percentage of total 2011 Percentage of total
Estonia 34,641 12.5% 25.7% 30,784 25.1%
Latvia 33,545 12.5% 24.9% 29,810 24.3%
Lithuania 20,007 3.8% 14.9% 19,277 15.7%
Poland 27,207 -1.3% 20.2% 27,566 22.5%
Slovakia 15,190 40.2% 11.3% 10,838 8.9%
Belarus 3,401 6.3% 2.5% 3,200 2.6%
Italy 730 - 0.5% 0 0.0%
Romania* 0 - 0.0% 954 0.8%
Total 134,721 10.0% 100.0% 122,429 100.0%

 

* Romanian income from gaming transactions and revenue were recognised until transfer of control to the new owner at 30 June 2011.

At the end of Q4 2012, the Group had 63 casinos, with the total floor area of 24,030 m². At the end of Q4 2011, the number of the Group’s casinos was 61 and total floor area was 24,014 m².

Number of casinos by segment 

  31.12.2012 31.12.2011
Estonia 18 17
Latvia 21 21
Lithuania 10 10
Poland 3 4
Slovakia 4 4
Belarus 5 5
Italy 2 -
Total 63 61

 

During the 12-month period of 2012, the Group’s consolidated operating expenses decreased by 3.1% or EUR 3.4 million as compared to the expenses during 12-month period in 2011. Depreciation, amortisation and impairment losses decreased the most compared to the 12-month period in 2011 by EUR 5.3 million. Staff costs with social security taxes increased the most as compared to 12-month period of 2011 by EUR 2.5 million and licence fees and gaming taxes by EUR 1.7 million.

Staff costs with social security taxes made up the largest share of the Group’s operating expenses, i.e. EUR 33.0 million, followed by gaming tax expenses of EUR 27.5 million, depreciation, amortisation and impairment losses of EUR 10.4 million, rental expenses of EUR 9.5 million and marketing expenses of EUR 9.1 million.

During the 12-month period in 2012, the consolidated net profit attributable to equity holders of the parent company totalled EUR 24.2 million. During 12-month period in 2011, the consolidated net profit attributable to equity holders of the parent company totalled EUR 13.8 million.

 

Overview by markets

Estonian segment

During the 12-month period in 2012, the external revenue of the Estonian segment totalled EUR 35.4 million, of which the income from gaming transactions totalled EUR 31.5 million and other revenue and income totalled EUR 3.9 million. The external revenue of the Estonian segment increased by 7.9% compared to the 12-month period in 2011. The market share of Olympic Casino Eesti AS in the Estonian gaming market was 57% based on Q4 2012 and 55% based on Q4 2011. During the 12-month period in 2012, the total Estonian gaming market increased by 7% as compared to the 12-month period in 2011.

During the 12-month period in 2012, the EBITDA of the Estonian segment totalled EUR 9.6 million and the operating profit totalled EUR 6.7 million. During the 12-month period in 2011, the EBITDA of the Estonian segment totalled EUR 7.1 million and the operating profit totalled EUR 3.5 million.

At the end of Q4 2012, there were 18 Olympic casinos with 739 slot machines and 20 gaming tables operating in Estonia.

 

Latvian segment

During the 12-month period in 2012, the external revenue of the Latvian segment totalled EUR 33.7 million, of which the income from gaming transactions totalled EUR 30.8 million and other revenue and income totalled EUR 2.9 million. The external revenue of the Latvian segment increased by 12.9% compared to the 12-month period in 2011. The market share of Olympic Casino Latvia SIA in the Latvian gaming market was 21% based on Q4 2012 and 21% based on Q4 2011. During the 12-month period in 2012, the total Latvian gaming market increased by 14% as compared to the 12-month period in 2011.

During the 12-month period in 2012, the EBITDA of the Latvian segment totalled EUR 15.5 million and the operating profit totalled EUR 13.2 million. During the 12-month period in 2011, the EBITDA of the Latvian segment totalled EUR 12.7 million and the operating profit totalled EUR 9.5 million.

At the end of Q4 2012, there were 21 Olympic casinos with 676 slot machines and 24 gaming tables operating in Latvia.

 

Lithuanian segment

During the 12-month period in 2012, the external revenue of the Lithuanian segment totalled EUR 20.0 million, of which the income from gaming transactions totalled EUR 18.7 million and other revenue and income totalled EUR 1.3 million. The external revenue of the Lithuanian segment increased by 3.7% compared to the 12-month period in 2011. The market share of Olympic Casino Group Baltija UAB in the Lithuanian gaming market was 69% based on Q4 2012 and 71% based on Q4 2011. During the 12-month period in 2012, the total Lithuanian gaming market increased by 7% as compared to the 12‑month period in 2011.

During the 12-month period in 2012, the EBITDA of the Lithuanian segment totalled EUR 5.2 million and the operating profit totalled EUR 3.9 million. During the 12-month period in 2011, the EBITDA of the Lithuanian segment totalled EUR 4.7 million and the operating profit totalled EUR 2.5 million.

At the end of Q4 2012, there were 10 Olympic casinos with 358 slot machines and 54 gaming tables operating in Lithuania.

 

Polish segment

During the 12-month period in 2012, the external revenue of the Polish segment totalled EUR 27.5 million, of which the income from gaming transactions totalled EUR 26.8 million and other revenue and income totalled EUR 0.7 million. The external revenue of the Polish segment decreased by 9.4% compared to the 12-month period in 2011.

During the 12-month period in 2012, the EBITDA of the Polish segment totalled EUR 4.7 million and the operating profit totalled EUR 2.6 million. During the 12-month period in 2011, the EBITDA of the Polish segment totalled EUR 6.2 million and the operating profit totalled EUR 2.7 million.

At the end of Q4 2012, there were 3 Olympic casinos with 264 slot machines and 37 gaming tables operating in Poland.

 

Slovak segment

During the 12-month period in 2012, the external revenue of the Slovak segment totalled EUR 15.2 million, of which the income from gaming transactions totalled EUR 13.8 million and other revenue and income totalled EUR 1.4 million. The external revenue of the Slovak segment increased by 40.1% compared to the 12-month period in 2011.

During the 12-month period in 2012, the EBITDA of the Slovak segment totalled EUR 2.6 million and the operating profit totalled EUR 1.3 million. During the 12-month period in 2011, the EBITDA of the Slovak segment totalled EUR 1.6 million and the operating profit totalled EUR 0.6 million.

At the end of Q4 2012, there were 4 Olympic casinos with 216 slot machines and 43 gaming tables operating in Slovakia.
 

Belarusian segment

In this interim financial statements the Belarusian segment is regarded as a hyperinflationary economy that is subject to the accounting policies of IAS 29.

During the 12-month period in 2012, the external revenue of the Belarusian segment totalled EUR 3.4 million, of which the income from gaming transactions totalled EUR 3.2 million and other revenue and income totalled EUR 0.2 million. The external revenue of the Belarusian segment increased by 6.0% compared to the 12-month period in 2011.

During the 12-month period in 2012, the EBITDA of the Belarusian segment totalled EUR 1.3 million and the operating profit totalled EUR 1.1 million. During the 12-month period in 2011, the EBITDA of the Belarusian segment totalled EUR 0.7 million and the operating profit totalled EUR 0.1 million.

At the end of Q4 2012, there were 5 Olympic casinos with 229 slot machines operating in Belarus.

 

Italian segment

In 2012, the external revenue of the Italian segment before deducting the gaming taxes of Italy totalled EUR 1.3 million. In 2012, the EBITDA of the Italian segment totalled EUR -0.3 million and the operating loss totalled EUR 0.3 million

At the end of Q4 2012, there were 2 VLT slot casinos under the brand Slottery with 112 gaming machines operating in Italy

 

Romanian segment

Olympic Entertainment Group AS signed share purchase agreement on 30 April 2011 with an Israeli entrepreneur for selling all the shares in Romanian subsidiaries Olympic Casino Bucharest S.R.L, Muntenia Food and Beverage S.R.L. and Olympic Exchange S.R.L. As of 30 June 2011 shares of Romanian subsidiaries have been registered to the buyer.

 

Financial position

At 31 December 2012, the consolidated balance sheet total of the Group was EUR 109.2 million (31 December 2011: EUR 101.0 million). The balance sheet amount has increased by 8.1% during the 12-month period in 2012.

Current assets totalled EUR 53.8 million or 49.3% of total assets, and non-current assets totalled EUR 55.4 million or 50.7% of total assets. At the balance sheet date, the liabilities totalled EUR 16.2 million and the equity totalled EUR 93.0 million. The largest liability items included tax liabilities of EUR 4.6 million, payables to suppliers 3.3 million and payables to employees of EUR 3.2 million.

 

Investments

During the 12-month period in 2012, the Group’s expenditures on property, plant and equipment totalled EUR 8.8 million, of which EUR 4.4 million was spent on construction and reconstruction of casinos and EUR 4.1 million on new gaming equipment.

During the 12-month period in 2011, expenditures on property, plant and equipment totalled EUR 3.8 million.

 

Cash flows

During the 12-month period in 2012, the Group’s cash flows generated from operating activities totalled EUR 34.7 million. Cash flows used in investing activities totalled EUR 10.7 million and cash flows used in financing activities totalled EUR 21.4 million. Net cash flows totalled EUR 2.6 million.

During the 12-month period in 2011, the Group’s cash flows generated from operating activities totalled EUR 33.9 million. Cash flows used in investing activities totalled EUR 11.5 million and cash flows used in financing activities totalled EUR 18.1 million. Net cash flows totalled EUR 4.2 million.

 

Staff

At 31 December 2012, the Group employed 2,277 people (31 December 2011: 2,336): 520 in Estonia, 480 in Latvia, 626 in Lithuania, 320 in Poland, 226 in Slovakia, 98 in Belarus and 7 in Italy.

During the 12-month period in 2012, employee wages and salaries including social security taxes totalled EUR 33.0 million (12m 2011: EUR 30.5 million). In 2012, 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 (2011: EUR 640 thousand) and EUR 157 thousand (2011: EUR 157 thousand), respectively.

 

Consolidated statement of financial position

  31.12.2012 31.12.2011
ASSETS    
Current assets    
Cash and cash equivalents 35,973 33,413
Financial investments 13,773 9,508
Receivables and prepayments 2,730 2,606
Prepaid income tax 280 397
Inventories 1,036 909
Total current assets 53,792 46,833
     
Non-current assets    
Deferred tax assets 1,038 1,111
Financial investments 2,035 2,937
Other long-term receivables 712 712
Investment property 1,785 1,795
Property, plant and equipment 19,611 19,754
Intangible assets 30,226 27,822
Total non-current assets 55,407 54,131
     
TOTAL ASSETS 109,199 100,964
     
     
LIABILITIES AND EQUITY    
Current liabilities    
Borrowings 241 3,113
Trade and other payables 12,827 9,870
Income tax payable 827 1,215
Provisions 1,585 1,881
Total current liabilities 15,480 16,079
     
Non-current liabilities    
Deferred tax liability 140 90
Borrowings 596 3,136
Total non-current liabilities 736 3,226
     
TOTAL LIABILITIES 16,216 19,305
     
EQUITY    
Share capital 60,532 81,718
Share premium 0 14,535
Statutory reserve capital 0 2,470
Other reserves 141 53
Translation reserves -700 -1,776
Retained earnings / accumulated losses 27,327 -19,930
Total equity attributable to equity holders of the parent 87,300 77,070
Non-controlling interest 5,683 4,589
TOTAL EQUITY 92,983 81,659
     
TOTAL LIABILITIES AND EQUITY 109,199 100,964

 

  

Consolidated statement of comprehensive income

  Q4 2012 Q4 2011 2012 2011
Continuing operations        
Income from gaming transactions 34,856 31,359 125,479 113,070
Revenue 2,407 2,292 9,242 8,405
Other income 666 449 1,224 4,892
Total revenue and income 37,929 34,100 135,945 126,367
         
Cost of materials, goods and services -796 -786 -2,907 -2,843
Other operating expenses -16,998 -15,018 -61,036 -56,911
Staff costs -9,050 -8,094 -33,005 -29,812
Depreciation, amortisation and impairment -2,421 -3,250 -10,380 -14,281
Change in the fair value of investment property 107 166 107 166
Other expenses -112 -2,197 -327 -3,861
Total operating expenses -29,270 -29,179 -107,548 -107,542
         
Operating profit 8,659 4,921 28,397 18,825
         
Interest income 134 79 351 359
Interest expense -13 -83 -157 -435
Foreign exchange gains (losses) -10 -55 -47 107
Other finance income and costs -975 108 436 480
Total finance income and costs -864 49 583 511
         
Profit from operating activities 7,795 4,970 28,980 19,336
         
Income tax expense -1,247 -905 -3,961 -2,487
Net profit for the period from continuing operations 6,548 4,065 25,019 16,849
         
Net loss for the period from discontinued operations 0 0 0 -2,462
         
Net profit for the period 6,548 4,065 25,019 14,387
Attributable to equity holders of the parent company 6,502 3,796 24,199 13,830
Attributable to non-controlling interest 46 269 820 557
         
         
Other comprehensive income        
Currency translation differences        
Continuing operations -40 -30 1,076 -2,329
Discontinued operations 0 0 0 -187
Total comprehensive profit for the period 6,508 4,035 26,095 11,871
Attributable to equity holders of the parent company 6,462 3,766 25,275 11,314
Attributable to non-controlling interest 46 269 820 557
         
         
Basic earnings per share* 4.3 2.5 16.0 9.1
From continuing operations 4.3 2.5 16.0 10.7
From discontinuing operations 0.0 0.0 0.0 -1.6
         
Diluted earnings per share* 4.3 2.5 16.0 9.1
From continuing operations 4.3 2.5 16.0 10.7
From discontinuing operations 0.0 0.0 0.0 -1.6

* 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_2012_ENG.pdf

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