Announcements

OEG unaudited consolidated operating results, 9 months of 2008

Posted on 06.11.2008

Important comments to the unaudited operating results of 9 months of OEG

Impact of the business environment, trends and development activities:

• The third quarter was dominated by the implementation of the Group’s extensive efficiency and restructuring programme.
• The impact of the overall economic slowdown and additional administrative restrictions (smoking bans in casinos in Estonia and Lithuania and obligation to register casino customers in Lithuania) on the Group operations remained strong. July and August turned out to be the most difficult months in the operations of the Group in recent years.
• The operating results of September showed that the growth trend has begun, with the results reaching the level of spring 2008.
• The growth trend continued more strongly in October when the sales results of the Group were comparable with those of December 2007, i.e. before the start of the economic slowdown.
• In terms of income, October was the most successful month of all time for the Group companies in Ukraine, Poland, Belarus and Romania.
• Overall, we expect the fourth quarter of 2008 to be the strongest quarter for the whole year due to several key measures taken in the second and third quarter aimed at restructuring our operations and increasing operating income.
• Development activities continued in the third quarter, as a result of which the Group opened 8 new casinos and recorded in the income statement 33.9 million kroons (2.2 million euros) as non-capitalised expansion-related costs. In nine months the Group opened a total of 19 new casinos and recorded in the income statement 81 million kroons (5.2 million euros) as non-capitalised costs.
• OEG will continue the fulfillment of the expansion and development targets.
Preliminary results of the implementation of the efficiency programme in the third quarter:

• Costs related to the closure of casinos and reduction of the number of employees amounted to 16.7 million kroons (1.1 million euros) in the third quarter.
• In nine months we have closed a total of 10 casinos that had negative cash flow, including 8 in the third quarter. We expect these measures to increase our profit from August until December by up to 30 million kroons (2 million euros).
• In the course of restructuring during 2008, the Group has reduced the number of employees by 288 positions (approximately 7%). The implementation of the efficiency programme will continue in the fourth quarter, with the main focus moving from the Baltic countries on Poland and Ukraine.
• By the end of this year the Group plans to reduce the number of employees by 10% in comparison with the beginning of the year. This is expected to cut costs by 37.5 million kroons (2.4 million euros) between May and December. We expect its positive impact on our income statement in 2009 to reach 94 million kroons (6.0 million euros).
• Measures taken in the second quarter to increase efficiency in Latvia had a positive result already in the third quarter. The operating profit of the Group’s Latvian companies in the third quarter increased almost nine times in comparison with the first quarter, from 2.2 million kroons (0.14 million euros) to 20.1 million kroons (1.3 million euros).

Financial highlights,                                                           
9 months of 2008:

Revenue: 2 078.5 million kroons (year-on-year growth +22.9%)
EBIDTA: 354.9 million kroons (year-on-year decrease -24.9%)
Operating profit: 83.8 million kroons (year-on-year decrease -71.9%)
Operating margin *: 4.0% (9 months of 2007 17.6%)
Profit before tax: 122.9 million kroons (year-on-year decrease -60.3%)
Net profit **: 103.4 million kroons (year-on-year decrease -63.5%)
Net margin ***: 5.0% (9 months of 2007 16.7%)

* Operating margin = operating profit / revenue
** Net profit before minority interest
*** Net margin = net profit / revenue
€1 = 15.6466 kroons

The Group’s consolidated sales revenue for the first 9 months of 2008 totaled 2,065.5 million kroons (132.0 million euros). Total consolidated revenue (sales revenue and other income) surged to 2,078.5 million kroons (132,8 million euros), 22,9% up on the 2007 first 9 months total consolidated revenue of 1,691.5 million kroons (108.1 million euros). In the first 9 months of 2008 94% of concern consolidated revenues was formed by gaming operations and 6% of other income. In the first 9 months of 2007 gaming revenue accounted for 93% and other revenues for 7% of consolidated revenue.

External revenue by segments                                                    

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| | 9 months | Growth | Proportion | 9 months of | Proportion |
| | of 2008 | | | 2007 | |
--------------------------------------------------------------------------------
| Estonia | 572,500 | -8.4% | 27.5% | 624,804 | 36.9% |
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| Latvia | 501,147 | 0.6% | 24.1% | 498,105 | 29.4% |
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| Lithuania | 318,760 | 1.9% | 15.3% | 312,672 | 18.5% |
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| Ukraine | 248,335 | 131.1% | 11.9% | 107,451 | 6.4% |
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| Belarus | 21,375 | 208.0% | 1.0% | 6,940 | 0.4% |
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| Poland | 367,858 | 179.6% | 17.7% | 131,566 | 7.8% |
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| Romania | 29,482 | - | 1.4% | 9,979 | 0.6% |
--------------------------------------------------------------------------------
| Slovakia | 19,034 | - | 0.9% | 0 | - |
--------------------------------------------------------------------------------
| Total | 2 078,491 | 22.9% | 100.0% | 1,691,517 | 100.0% |
--------------------------------------------------------------------------------

€1 = 15.6466 kroons

At the end of September 2008, the Group had 131 casinos, with a total area of 38,482 square meters. At the end of September 2007 the number of casinos was 115 and their total area was 32,823 m². Within 9 months of the current year 19 new casinos were opened and 10 casinos were closed. 15 casinos were renovated– 4 former Kristiine Kasiino´s in Estonia, 6 former Baltic Gaming casinos in Latvia, 4 former Eldorado casinos in Ukraine and 1 casino in Poland.

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| Number of casinos by segments | |
--------------------------------------------------------------------------------
| | 30 September 2008 | 31 December 2007 | 30 September 2007 |
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| Estonia | 34 | 35 | 35 |
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| Latvia | 33 | 38 | 36 |
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| Lithuania | 16 | 15 | 12 |
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| Ukraine | 24 | 19 | 18 |
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| Belarus | 5 | 4 | 3 |
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| Poland | 9 | 8 | 8 |
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| Romania | 9 | 3 | 3 |
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| Slovakia | 1 | - | - |
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| Total | 131 | 122 | 115 |
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Results of 2008 first 9 months were majorly influenced by decreasing trend of the gaming markets, which has sharpened in the 3rd quarter due to overall difficult economic situation. Estonian gaming market has decreased by approximately 25% in comparison with the 3rd quarter of 2007 and Latvian and Lithuanian markets by 20%. Additional administrative measures set up on gaming operators in the end of first part of 2008 also partially influence gaming revenues (obligation of casinos´ clients registration in Lithuania and smoking ban in casinos in Estonia and Lithuania).

In the 3rd quarter of 2008 the Group has put into practice an optimization plan, within the frames of which casinos with negative cash flow were closed in Estonia, Latvia and Romania and staff number has been decreased in all the states. Additional compensations to employees connected with optimization and costs of casinos´ closings influenced concern 3rd quarter result negatively by 16.7 million kroons (1.0 million euros). Concern activities aimed for unification of companies’ structure, constant optimization of operating expenses and integration of companies acquired in 2007 into other operations of OEG were also continued in the 3rd quarter.

Within the 3rd quarter 8 new casinos were opened: 3 in Estonia, 1 in Ukraine, 3 in Romania and 1 in Poland. Expenses connected with new casinos´ openings have influenced concern last quarter´s result by 33.9 million kroons (2.2 million euros).

Group´s operating profit for the first 9 months of 2008 composed 83.7 million kroons (5.3 million euros), which is 71.9% less compared to the same period of 2007. Consolidated net profit has decreased 63.5% in comparison with 283.3 million kroons (18.1 million euros) of last year, amounting to 103.4 million kroons (6.6 million euros).

Consolidated expenses for the first 9 months of 2008 have grown 43.1% compared to the 9 months of 2007 and totaled to 1,994.7 million kroons (127.5 million euros). The largest expense items were personnel expenses including social charges which amounted to 635.2 million kroons (40.6 million euros), followed by gaming tax expenses of 352.3 million kroons (22.5 million euros), depreciation and amortisation expense of 271.2 million kroons (17.3 million euros), premises rental expenses of 222.4 million kroons (14.2 million euros) and marketing and jackpot expenses of 164.0 million kroons (10.5 million euros).

In comparison with last year, the strongest cost growth in absolute figures came from personnel expenses – total 192.1 million kroons (12.3 million euros) – a 43,3% up on year ago, gaming tax expenses – 148.0 million kroons (9.5 million euros) – a 73,4% growth, and premises rent expenses – 109.2 million kroons (7.0 million euros) – a 96.5% growth.



Estonian segment

In the first 9 months of 2008, the segment’s external revenue amounted to 572.5 million kroons (36.6 million euros) including gaming revenue of 525.4 million kroons (33.6 million euros). Estonian segment has earned 27.5% of Group’s revenues, while last year segment’s proportion was 36.9%. The segment’s external revenue decreased by 8.4% compared to the first 9 months of 2007, 3rd quarter revenues decreased 22.4% in comparison with the same period last year.

Decrease in revenues reflects the development trend of Estonian gaming market – according to the Estonian Gaming Operators´ association revenue decrease in 2008 composed approximately 20%. In addition to macroeconomical factors, gaming revenues were negatively influenced by a smoking ban in casinos since June.

Within the year of 2008 the Group has opened 3 and closed 4 casinos in Estonia. During the first half of the year 4 former casinos of Kristiine Kasiino were renovated. At the end of September 2008, there were 34 Olympic Casinos in Estonia with a total of 1,391 slot machines and 25 gaming tables.

Estonian segment’s operating profit for the first 9 months of 2008 has decreased by 48.8% in comparison with the same period of 2007 and amounted to 81.2 million kroons (5.2 million euros). Profit decrease has been primarily caused by slowdown of the revenues. Costs connected with casinos reorganization influenced a result by 8.9 million kroons (0.6 million euros).


Latvian segment

The Latvian segment accounts for 24.1% of the Group’s consolidated revenue. In the first 9 months of 2008, the segment’s external revenue amounted to 501.1 million kroons (32.0 million euros) including gaming revenue of 459.8 million kroons (29.4 million euros). In the first 9 months of 2008, the segment’s external revenue grew by 0.6% compared to the same period last year. Within 9 moths of 2008 Latvian gaming market has decreased by 20%.

The Latvian segment’s operating profit for the 9 months of 2008 amounted to 33.9 million kroons (2.2 million euros), 58.4% down compared to the same period of 2007. In connection with the realization of the process of streamlining organizational and staff structures in Latvian subsidiaries during the 2nd and 3rd quarters, the operating profit in the 3rd quarter of the current year has grown up to 20.1 million kroons (1.3 million euros). Costs connected to closing of 4 casinos and staff optimization have influenced 3rd quarter´s profit negatively by 10.4 million kroons (0.7 million euros). The full cost effect of restructuring process will appear at the end of the year.

During the first 9 months of 2008, 6 former Baltic Gaming casinos were renovated and 5 former Baltic Gaming casinos were closed. At the end of September 2008, the Latvian segment was operating 33 casinos with a total of 1,131 slot machines and 39 gaming tables.


Lithuanian segment

The Lithuanian segment accounts for 15.5% of the group´s consolidated revenue. The segment’s external revenue amounted to 318.8 million kroons (20.4 million euros) including gaming revenue of 303.4 million kroons (19.4 million euros). In comparison with the same period of last year, the revenue growth composed 1.9%.


Lithuanian segment operating profit composed 43.1 million kroons (2.8 million euros), 46.6% down compared to the first 9 months of 2007. Lithuanian segment revenues and profit were negatively influenced by casino clients´ registration obligation, which came into force since June, and by total smoking ban at casinos, which came into force with a legal adjustment since July.

At the end of September 2008, the Lithuanian segment was operating 16 casinos with the total of 640 slot machines and 74 gaming tables.


Ukrainian segment

The segment`s external revenue increased 2.3 times compared to the revenues of the 9 months of 2007. The segment`s proportion grew up to 11.9% of the Group’s consolidated revenue. In the 9 months of 2008, the segment’s external revenue amounted to 248.3 million kroons (15.9 million euros) including gaming revenue of 231.8 million kroons (14.8 million euros).

The Ukrainian segment’s operating loss for the 9 months of 2008 amounted to 9.8 million kroons (0.6 million euros). The operating profit of the same period of 2007 year was 14.9 million kroons (1.0 million euros). The segment’s operating result was influenced by expansion costs and expenses related to Eldorado casinos closed for renovation in the total amount of 46.4 million kroons (3.0 million euros).

During the first 9 months of 2008, 5 new casinos were opened and 3 former Eldorado casinos were renovated. At the end of September 2008, the Ukrainian segment was operating 24 casinos with a total of 1,117 slot machines and 25 gaming tables.


Belarus segment

At the end of September 2008, Olympic Casino Bel IP was operating 5 casinos with a total of 261 slot machines in Minsk. In July a fifth Belarus Olympic Casino was opened at Aleksandrov Passazh mall in Minsk.

The Belarus segment accounts for 1% of the Group’s consolidated revenue. During the first 9 months of 2008, revenue has grown 3.1 times compared to the same period of 2007 and amounted to 21.4 million kroons (1.4 million euros). 9 months´ operating loss of Belarus segment was 13.9 million kroons (0.9 million euros).


Polish segment

In the first 9 months of 2008, the Polish segment’s external revenue amounted to 367.9 million kroons (23.5 million euros) accounting for 17.7% of the Group’s consolidated revenue. Within the first 9 months of 2008, revenue has grown 2.8 times compared to the same period last year. The growth in revenues is related to the fact, that Olympic Casino Sunrise at Hilton hotel was opened at the end of the last year´s second quarter.

During the first 9 months, 1 former Casino Polonia casino was renovated and 1 new casino was opened, which related costs negatively affected operating profit by 3.2 million kroons (0.2 million euros). The segment’s operating profit for the first 9 months of 2008 amounted to 3.5 million kroons (0.2 million euros).


At the end of the 3rd quarter, concern was operating 9 casinos with 354 slots and 61 gaming tables in Poland.


Romanian segment

The Romanian segment ended the first 9 months of 2008 with the revenue of 29.5 million kroons (1.9 million euros). During 9 months of 2008 6 new casinos were opened in Romanian capital Bucharest. Preparation works connected with new casinos´ openings, and start-up period of the new casinos have brought along the expenses, which resulted in the operating loss of 41.1 million kroons (2.6 million euros).

At the end of September 2008, concern was operating 9 casinos in Romania with a total of 341 slot machines. Starting from June, the casino located at Sofitel hotel in Bucharest is closed for renovation, reopening is planned for the first quarter of 2009.


Slovakian segment

At the end of June 2008 Group has opened its first casino in Slovakia, at the Radisson SAS Hotel located in the center of Bratislava with 61 slot machines and 11 gaming tables.

Slovakia segment finished the first 9 months of 2008 with revenue of 19.0 million kroons (1.2 million euros) and operating loss of 13.2 million kroons (0.8 million euros).


Balance sheet

At 30 September 2008, the consolidated balance sheet of Group composed 2,928.9 million kroons (187.2 million euros). At 31 December 2007, the consolidated balance sheet of Group amounted to 2,703.9 million kroons (172.8 million euros). The balance sheet volume growth within 9 months composed 8.3%.

Current assets accounted for 488.1 million kroons (31.2 million euros) or 16.7% of total assets and non-current assets for 2,440.8 million kroons (156.0 million euros) or 83.3% of total assets. Intangible assets accounted for 690.5 million kroons (44.1 million euros) or 28.2% of non-current assets.

At 30 September 2008, Group’s consolidated liabilities amounted to 587.3 million kroons (37.5 million euros) and consolidated equity amounted to 2,341.6 million kroons (149.7 million euros). The largest part of liabilities is formed by bank loan for expansion financing in amount of 215.9 million kroons (13.8 million euros) and current liabilities from operations - tax commitments of 72.5 million kroons (4.6 million euros), trade payables in amount of 149.3 million kroons (9.5 million euros), payables to employees of 61.8 million kroons (3.9 million euros).


Investments


In the first 9 months of 2008, the Group’s expenditures on property, plant and equipment totalled 610.7 million kroons (39.0 million euros) including investment in gaming equipment of 414.0 million kroons (26.5 million euros), renovation of casinos in amount of 148.6 million kroons (9.5 million euros), and acquisition of other items of property, plant and equipment in amount of 35.8 million kroons (2.3 million euros). Prepayments for fixed assets at 30 September totalled 12.3 million kroons (0.7 million euros).


Expenditures on intangible assets in the first 9 month amounted to 7.4 million kroons (0.5 million euros).


People

At 30 September 2008, the Group employed 3,849 people (31 December 2007: 4,004): 660 in Estonia, 818 in Latvia, 725 in Lithuania, 747 in Ukraine, 97 in Belarus, 587 in Poland, 123 in Romania and 92 in Slovakia.

During 9 months of 2008 employee remuneration expenses including relevant social charges amounted to 635.2 million kroons (40.6 million euros), in the same period of 2007 the responding figure was 443.1 million kroons (28.3 million euros).

The Group's key financials                                                      
--------------------------------------------------------------------------------
| | 9 months 2008 | 9 months 2007 | Change |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue (kroons, millions) | 2,078.5 | 1,691.5 | 22.9% |
--------------------------------------------------------------------------------
| EBITDA (kroons, millions) | 354.9 | 472.3 | -24.9% |
--------------------------------------------------------------------------------
| Operating profit (kroons, | 83.7 | 297.8 | -71.9% |
| millions) | | | |
--------------------------------------------------------------------------------
| Net profit (kroons, millions) | 122.9 | 309.4 | -60.3% |
--------------------------------------------------------------------------------
| EBITDA margin | 17.1% | 27.9% | -38.8% |
--------------------------------------------------------------------------------
| Operating margin | 4.0% | 17.6% | -77.1% |
--------------------------------------------------------------------------------
| Net margin | 5.9% | 18.3% | -67.7% |
--------------------------------------------------------------------------------
| Equity ratio | 79.9% | 88.9% | -10.1% |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of casinos at end of | 131 | 115 | 16 |
| period | | | |
--------------------------------------------------------------------------------
| Total area of casinos at end of | 38,482 | 32,823 | 5,659 |
| period (in square meters) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of slot machines at end | 5,296 | 4,473 | 823 |
| of period | | | |
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| Number of gaming tables at end | 235 | 203 | 32 |
| of period | | | |
--------------------------------------------------------------------------------



Underlying formulas

o EBITDA = earnings before financial expenses, taxes, depreciation, amortisation
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 = 15.6466 kroons



--------------------------------------------------------------------------------
| INCOME STATEMENT | | | | |
--------------------------------------------------------------------------------
| (In thousands of Estonian | Q3 2008 | Q3 2007 | 9M 2008 | 9M 2007 |
| kroons) | | | | |
--------------------------------------------------------------------------------
| Revenue | | | | |
--------------------------------------------------------------------------------
| Sales revenue | 675 993 | 654 131 | 2 065 492 | 1 684 993 |
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| Other income | 7 226 | 3 003 | 12 999 | 6 524 |
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| Total revenue | 683 219 | 657 134 | 2 078 491 | 1 691 517 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Expenses | 0 | 0 | 0 | 0 |
--------------------------------------------------------------------------------
| Cost of materials, goods | -13 381 | -15 153 | -49 410 | -40 759 |
| and services used | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -352 | -301 814 | -1 010 656 | -732 848 |
| | 017 | | | |
--------------------------------------------------------------------------------
| Labour costs | -213 | -170 669 | -635 221 | -443 150 |
| | 554 | | | |
--------------------------------------------------------------------------------
| Depreciation and | -101 | -66 869 | -271 170 | -174 566 |
| amortisation | 784 | | | |
--------------------------------------------------------------------------------
| Other expenses | -18 104 | -906 | -28 277 | -2 443 |
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| Total expenses | -698 | -555 411 | -1 994 734 | -1 393 766 |
| | 840 | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Operating profit | -15 621 | 101 723 | 83 757 | 297 751 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Financial income and | | | | |
| expenses | | | | |
--------------------------------------------------------------------------------
| Interest income | 2 318 | 4 848 | 8 529 | 24 240 |
--------------------------------------------------------------------------------
| Interest expense | -1 769 | -272 | -4 860 | -286 |
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| Foreign exchange gains and | 25 091 | -9 325 | 35 475 | -12 263 |
| losses | | | | |
--------------------------------------------------------------------------------
| Net financing costs | 25 640 | -4 749 | 39 144 | 11 691 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Profit from ordinary | 10 019 | 96 974 | 122 901 | 309 442 |
| operations | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Income tax expense | | | | |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE PERIOD | 5 974 | 94 238 | 103 416 | 283 273 |
--------------------------------------------------------------------------------
| Attributable to minority | -1 451 | 1 392 | 4 533 | 7 650 |
| interest | | | | |
--------------------------------------------------------------------------------
| Attributable to equity | 7 425 | 92 846 | 98 883 | 275 623 |
| holders of the parent | | | | |
--------------------------------------------------------------------------------
| Basic earnings per share | 0,05 | 0,61 | 0,65 | 1,83 |
| (EEK) | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per share | 0,05 | 0,61 | 0,65 | 1,83 |
| (EEK) | | | | |
--------------------------------------------------------------------------------



--------------------------------------------------------------------------------
| INCOME STATEMENT | | | | |
--------------------------------------------------------------------------------
| (In thousands of euro) | Q3 2008 | Q3 2007 | 9M 2008 | 9M 2007 |
--------------------------------------------------------------------------------
| Revenue | | | | |
--------------------------------------------------------------------------------
| Sales revenue | 43 204 | 41 807 | 132 009 | 107 691 |
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| Other income | 462 | 192 | 831 | 417 |
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| Total revenue | 43 666 | 41 999 | 132 840 | 108 108 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Expenses | | | | |
--------------------------------------------------------------------------------
| Cost of materials, goods | -855 | -968 | -3 158 | -2 605 |
| and services used | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -22 498 | -19 289 | -64 593 | -46 838 |
--------------------------------------------------------------------------------
| Labour costs | -13 649 | -10 908 | -40 598 | -28 322 |
--------------------------------------------------------------------------------
| Depreciation and | -6 505 | -4 274 | -17 331 | -11 157 |
| amortisation | | | | |
--------------------------------------------------------------------------------
| Other expenses | -1 157 | -58 | -1 807 | -156 |
--------------------------------------------------------------------------------
| Total expenses | -44 664 | -35 497 | -127 487 | -89 078 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Operating profit | -998 | 6 501 | 5 353 | 19 030 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Financial income and | | | | |
| expenses | | | | |
--------------------------------------------------------------------------------
| Interest income | 148 | 310 | 545 | 1 549 |
--------------------------------------------------------------------------------
| Interest expense | -113 | -17 | -311 | -18 |
--------------------------------------------------------------------------------
| Foreign exchange gains and | 1 604 | -596 | 2 267 | -784 |
| losses | | | | |
--------------------------------------------------------------------------------
| Net financing costs | 1 639 | -304 | 2 502 | 747 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Profit from ordinary | 640 | 6 198 | 7 855 | 19 777 |
| operations | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Income tax expense | -259 | -175 | -1 245 | -1 673 |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE PERIOD | 382 | 6 023 | 6 609 | 18 104 |
--------------------------------------------------------------------------------
| Attributable to minority | -93 | 89 | 290 | 489 |
| interest | | | | |
--------------------------------------------------------------------------------
| Attributable to equity | 475 | 5 934 | 6 320 | 17 616 |
| holders of the parent | | | | |
--------------------------------------------------------------------------------
| Basic earnings per share | 0,003 | 0,04 | 0,04 | 0,12 |
| (€) | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per share | 0,003 | 0,04 | 0,04 | 0,12 |
| (€) | | | | |
--------------------------------------------------------------------------------



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| BALANCE SHEET | | |
--------------------------------------------------------------------------------
| ASSETS | | |
--------------------------------------------------------------------------------
| (In thousands of Estonian kroons) | 30 Sept 2008 | 31 Dec 2007 |
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 316 087 | 501 800 |
--------------------------------------------------------------------------------
| Short-term financial investments | 0 | 10 929 |
--------------------------------------------------------------------------------
| Trade receivables | 7 401 | 14 309 |
--------------------------------------------------------------------------------
| Other receivables and prepayments | 115 842 | 68 461 |
--------------------------------------------------------------------------------
| Prepaid income tax | 12 982 | 2 567 |
--------------------------------------------------------------------------------
| Inventories | 35 872 | 20 441 |
--------------------------------------------------------------------------------
| Total current assets | 488 184 | 618 507 |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Deferred tax assets | 2 808 | 3 575 |
--------------------------------------------------------------------------------
| Other financial investments | 13 919 | 7 248 |
--------------------------------------------------------------------------------
| Other long-term receivables | 23 181 | 11 955 |
--------------------------------------------------------------------------------
| Investment property | 57 909 | 52 924 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 1 652 481 | 1 319 338 |
--------------------------------------------------------------------------------
| Intangible assets | 690 458 | 690 379 |
--------------------------------------------------------------------------------
| Total non-current assets | 2 440 756 | 2 085 419 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 2 928 940 | 2 703 926 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| LIABILITIES AND EQUITY | | |
--------------------------------------------------------------------------------
| (In thousands of Estonian kroons) | 30 Sept 2008 | 31 Dec 2007 |
--------------------------------------------------------------------------------
| LIABILITIES | | |
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Interest-bearing loans and borrowings | 120 666 | 4 682 |
--------------------------------------------------------------------------------
| Customer advances | 19 359 | 12 600 |
--------------------------------------------------------------------------------
| Trade payables | 149 271 | 125 749 |
--------------------------------------------------------------------------------
| Other payables | 9 090 | 9 293 |
--------------------------------------------------------------------------------
| Income tax liability | 4 723 | 13 617 |
--------------------------------------------------------------------------------
| Other tax liabilities | 67 784 | 70 870 |
--------------------------------------------------------------------------------
| Other accrued payables | 66 510 | 73 662 |
--------------------------------------------------------------------------------
| Provisions | 11 649 | 15 297 |
--------------------------------------------------------------------------------
| Total current liabilities | 449 052 | 325 770 |
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 16 580 | 18 280 |
--------------------------------------------------------------------------------
| Interest-bearing loans and borrowings | 121 688 | 24 787 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 138 268 | 43 067 |
--------------------------------------------------------------------------------
| Total liabilities | 587 320 | 368 837 |
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| EQUITY | | |
--------------------------------------------------------------------------------
| Share capital | 1 510 000 | 1 510 000 |
--------------------------------------------------------------------------------
| Share premium | 227 273 | 227 273 |
--------------------------------------------------------------------------------
| Statutory capital reserve | 37 759 | 19 444 |
--------------------------------------------------------------------------------
| Translation reserves | -22 729 | -1 344 |
--------------------------------------------------------------------------------
| Retained earnings | 523 462 | 518 394 |
--------------------------------------------------------------------------------
| Total equity attributable to equity | 2 275 765 | 2 273 768 |
| holders of the parent | | |
--------------------------------------------------------------------------------
| Minority interest | 65 855 | 61 321 |
--------------------------------------------------------------------------------
| Total equity | 2 341 620 | 2 335 089 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY | 2 928 940 | 2 703 926 |
--------------------------------------------------------------------------------



--------------------------------------------------------------------------------
| BALANCE SHEET | | |
--------------------------------------------------------------------------------
| ASSETS | | |
--------------------------------------------------------------------------------
| (In thousands of euro) | 30 Sept 2008 | 31 Dec 2007 |
--------------------------------------------------------------------------------
| Current assets | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | 20 202 | 32 071 |
--------------------------------------------------------------------------------
| Short-term financial investments | 0 | 698 |
--------------------------------------------------------------------------------
| Trade receivables | 473 | 915 |
--------------------------------------------------------------------------------
| Other receivables and prepayments | 7 404 | 4 375 |
--------------------------------------------------------------------------------
| Prepaid income tax | 830 | 164 |
--------------------------------------------------------------------------------
| Inventories | 2 293 | 1 306 |
--------------------------------------------------------------------------------
| Total current assets | 31 201 | 39 530 |
--------------------------------------------------------------------------------
| Non-current assets | | |
--------------------------------------------------------------------------------
| Deferred tax assets | 179 | 229 |
--------------------------------------------------------------------------------
| Other financial investments | 890 | 463 |
--------------------------------------------------------------------------------
| Other long-term receivables | 1 482 | 764 |
--------------------------------------------------------------------------------
| Investment property | 3 701 | 3 382 |
--------------------------------------------------------------------------------
| Property, plant and equipment | 105 613 | 84 321 |
--------------------------------------------------------------------------------
| Intangible assets | 44 128 | 44 123 |
--------------------------------------------------------------------------------
| Total non-current assets | 155 993 | 133 283 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | 187 193 | 172 812 |
--------------------------------------------------------------------------------
| | | |
--------------------------------------------------------------------------------
| LIABILITIES AND EQUITY | | |
--------------------------------------------------------------------------------
| (In thousands of euro) | 30 Sept 2008 | 31 Dec 2007 |
--------------------------------------------------------------------------------
| LIABILITIES | | |
--------------------------------------------------------------------------------
| Current liabilities | | |
--------------------------------------------------------------------------------
| Interest-bearing loans and borrowings | 7 712 | 299 |
--------------------------------------------------------------------------------
| Customer advances | 1 237 | 805 |
--------------------------------------------------------------------------------
| Trade payables | 9 540 | 8 037 |
--------------------------------------------------------------------------------
| Other payables | 581 | 594 |
--------------------------------------------------------------------------------
| Income tax liability | 302 | 4 529 |
--------------------------------------------------------------------------------
| Other tax liabilities | 4 332 | 870 |
--------------------------------------------------------------------------------
| Other accrued payables | 4 251 | 4 708 |
--------------------------------------------------------------------------------
| Provisions | 745 | 978 |
--------------------------------------------------------------------------------
| Total current liabilities | 28 700 | 20 821 |
--------------------------------------------------------------------------------
| Non-current liabilities | | |
--------------------------------------------------------------------------------
| Deferred tax liability | 1 060 | 1 168 |
--------------------------------------------------------------------------------
| Interest-bearing loans and borrowings | 7 777 | 1 584 |
--------------------------------------------------------------------------------
| Total non-current liabilities | 8 837 | 2 753 |
--------------------------------------------------------------------------------
| Total liabilities | 37 537 | 23 573 |
--------------------------------------------------------------------------------
| EQUITY | | |
--------------------------------------------------------------------------------
| Share capital | 96 507 | 96 507 |
--------------------------------------------------------------------------------
| Share premium | 14 525 | 14 525 |
--------------------------------------------------------------------------------
| Statutory capital reserve | 2 413 | 1 243 |
--------------------------------------------------------------------------------
| Translation reserves | -1 453 | -86 |
--------------------------------------------------------------------------------
| Retained earnings | 33 455 | 33 131 |
--------------------------------------------------------------------------------
| Total equity attributable to equity | 145 448 | 145 320 |
| holders of the parent | | |
--------------------------------------------------------------------------------
| Minority interest | 4 209 | 3 919 |
--------------------------------------------------------------------------------
| Total equity | 149 657 | 149 239 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND EQUITY | 187 193 | 172 812 |
--------------------------------------------------------------------------------


Additional information:

Andri Avila
CEO
Olympic Entertainment Group
Tel + 372 667 1250
E-mail: andri.avila@oc.eu
www.olympic-casino.com

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