Announcements

OEG's consolidated unaudited results for Q1 2016

Posted on 26.04.2016

Key performance indicators of the Group

    Q1 2016 Q1 2015 Q1 2014
Revenues m€ 45.6 39.2 34.9
Gaming tax m€ 8.4 7.5 7.0
EBITDA m€ 9.0 8.8 8.0
EBIT m€ 6.5 7.0 6.1
Net profit m€ 5.1 5.5 4.9
EBITDA margin % 19.6% 22.5% 23.0%
Operating margin % 14.2% 17.8% 17.4%
Net margin % 11.2% 14.0% 14.0%
         
Assets m€ 169.9 135.5 122.3
Equity m€ 127.2 115.6 107.1
ROE % 4.0% 5.2% 5.0%
ROA % 3.0% 4.2% 4.2%
Current ratio times 1.4 2.8 3.5
         
Casinos at end of period # 124 96 82
Casino floor area at end of period m2 38,415 31,603 27,181
Employees # 3,201 2,656 2,505
         
         
Slot machines at the end of period # 4,183 3,317 2,986
Electronic roulette terminals at the end of period # 142 120 158
Gaming tables at the end of period # 183 171 171
Tournament poker gaming tables at the end of period # 64 55 53

 

Key developments of the Group during the first quarter of 2016:

  • The Group’s consolidated sales revenues for Q1 2016 amounted to EUR 45.4 million, up 16.0% or EUR 6.2 million y‑o‑y.
  • Gaming revenues accounted for 93.7% (42.5 m€) and other revenues for 6.3% (2.8 m€) of the Group’s consolidated sales revenues for Q1 2016. A year before the revenue split was 93.9% (36.7 m€) and 6.1% (2.4 m€), respectively.
  • The Group’s consolidated EBITDA for Q1 2016 amounted to EUR 9.0 million, a growth of 1.6% from EUR 8.8 million a year before. The Group’s consolidated operating profit decreased EUR 0.5 million (-7.0%) to EUR 6.5 million.
  • The Group’s consolidated net profit attributable to equity holders of the parent company for Q1 2016 totalled EUR 5.1 million compared to EUR 5.5 million a year ago.
  • Group company Baina Investments Sp. z o.o. signed the agreement on 14 January 2016 to acquire a 20% holding in the Polish subsidiary Casino Polonia-Wrocław Sp. z o.o., increasing Group holding to 100%.
  • After receiving an approval from the Estonian Competition Authority, on 16 February 2016 Group has completed the acquisition of 100% shareholding in Estonian casino operator AS MC Kasiinod, which is also the 100% owner of the subsidiary OÜ Oma & Hea, which is providing casino bar services. As a result of the completion of the transaction Group now owns 24 casinos in Estonia.
  • The Estonian subsidiaries of Group, Olympic Casino Eesti AS and the casino operating company AS MC Kasiinod which was acquired in winter of 2016, have concluded a merger agreement on 21 March 2016. The merger will be finalised within the current year and during the course of the merger AS MC Kasiinod will merge with Olympic Casino Eesti AS.
  • The Slovak subsidiaries of Group, Olympic Casino Slovakia S.r.o. and Olympic F&B S.r.o., have concluded a merger agreement on 22 March 2016. The merger was finalised in April in current year and during the course of the merger Olympic F&B S.r.o. merged with Olympic Casino Slovakia S.r.o.
  • On 31 March 2016 Group has decided to liquidate its Dutch subsidiary Siquia Holding B.V., which does not have any business activity. The area of activity for the subsidiary was holding activities. The liquidation will be finalised within the current year.

 

The Group’s consolidated sales revenues by segments:

‘000€ Q1 2016 Q1 2015 Change
Estonia 9,530 8,344 14.2%
Latvia 16,024 12,093 32.5%
Lithuania 6,288 5,865 7.2%
Poland 4,573 6,496 -29.6%
Slovakia 3,923 3,730 5.2%
Belarus 122 285 -57.3%
Italy 2,707 2,301 17.7%
Malta 2,186 0 N/A
Total 45,353 39,114 16.0%

 

Number of casinos by segment:

  31 March 2016 31 march 2015
Estonia 24 20
Latvia 57 37
Lithuania 19 16
Poland 1 2
Slovakia 7 7
Belarus 1 2
Italy 14 12
Malta 1  
Total 124 96

 

Overview by markets

Estonia

The sales revenues of Estonian segment for Q1 2016 amounted to EUR 9.5 million (+1.2 m€, +14.2%), EBITDA to EUR 1.4 million (-0.2 m€, -15.3%) and operating profit to EUR 0.8 million (-0.3 m€, -29.2%). Gaming revenue increased 14.0% y-o-y amounting to EUR 9.0 million.

At the end of March 2016, there were 24 Olympic casinos with 977 slot machines, 20 electronic roulette terminals, 17 gaming tables and 21 tournament poker gaming tables operating in Estonia. As at 31 March 2016, the Estonian operations employed 551 people.

Latvia

The sales revenues of Latvian segment for Q1 2016 amounted to EUR 16.0 million (+3.9 m€, +32.5%), EBITDA to EUR 6.8 million (+1.6 m€, +30.9%) and operating profit to EUR 5.9 million (+1.5 m€, +32.2%). Gaming revenue increased 32.7% y-o-y amounting to EUR 14.7 million.

At the end of March 2016, there were 57 Olympic casinos with 1,515 slot machines, 8 electronic roulette terminals, 19 gaming tables and 9 tournament poker gaming tables operating in Latvia. As at 31 March 2016, the Latvian operations employed 934 people.

Lithuania

The sales revenues of Lithuanian segment for Q1 2016 amounted to EUR 6.3 million (+0.4 m€, +7.2%), EBITDA to EUR 0.5 million (-0.7 m€, -59.7%) and operating profit to EUR 0.1 million (-0.9 m€, -89.4%). Gaming revenue increased 5.6% y-o-y amounting to EUR 5.9 million.

At the end of March 2016, there were 19 Olympic with 562 slot machines, 8 electronic roulette terminals, 64 gaming tables and 2 tournament poker gaming tables operating in Lithuania. As at 31 March 2016, the Lithuanian operations employed 848 people.

Poland

The sales revenues of Polish segment for Q1 2016 amounted to EUR 4.6 million (-1.9 m€, -29.6%), EBITDA to EUR 0.3 million (-0.6 m€, -69.7%) and operating profit to EUR 0.2 million (-0.6 m€, -77.2%). Gaming revenue decreased 29.3% y-o-y amounting to EUR 4.5 million.

At the end of March 2016, there was 1 Olympic casino with 70 slot machines, 46 electronic roulette terminals, 30 gaming tables and 4 tournament poker gaming tables operating in Poland. As at 31 March 2016, the Polish operations employed 253 people.

Slovakia

The sales revenues of Slovak segment for Q1 2016 amounted to EUR 3.9 million (+0.2 m€, +5.2%), EBITDA to EUR 0.2 million (+0.3 m€) and operating loss to EUR -0.1 million (+0.2 m€). Gaming revenue increased 6.8% y-o-y amounting to EUR 3.4 million.

At the end of March 2016, there were 7 Olympic casinos with 284 slot machines, 42 electronic roulette terminals, 34 gaming tables and 18 tournament poker gaming tables operating in Slovakia. As at 31 March 2016, the Slovak operations employed 316 people.

Belarus

The sales revenues of Belarus segment for Q1 2016 amounted to EUR 0.1 million (-0.2 m€, -57.3%), EBITDA to EUR -0.1 million (+0.04 m€) and operating loss to EUR -0.1 million (+0.04 m€). Gaming revenue decreased 56.6% y‑o‑y amounting to EUR 0.1 million.

At the end of March 2016, there was 1 Olympic casino with 33 slot machines operating in Belarus. As at 31 March 2016, the Belarus operations employed 36 people.

Italy

The sales revenues of Italian segment before deducting the gaming tax of Italy for Q1 2016 amounted to EUR 6.2 million (+1.2 m€, +23.4%), EBITDA to EUR 0.2 million (+0.1 m€, +55.6%) and operating profit to EUR 0.2 million (+0.1 m€, +222.5%).

At the end of March 2016, there were 14 VLT slot casinos with 463 slot machines operating in Italy. As at 31 March 2016, the Italian operations employed 71 people.

Malta

The sales revenues of Maltese segment for Q1 2016 amounted to EUR 2.2 million, EBITDA to EUR -0.3 million and operating loss to EUR -0.5 million.

At the end of March 2016, there was 1 casino with 285 slot machines, 18 electronic roulette terminals, 19 gaming tables and 10 tournament poker gaming tables operating in Malta. As at 31 march 2016, Maltese operations employed 192 people.

 

Financial position

As at 31 March 2016, the total assets of the Group amounted to EUR 169.9 million, up 25.4% or EUR 34.4 million compared to the same period a year ago.

Current assets totalled EUR 41.1 million or 24.2% of total assets, and non-current assets EUR 128.9 million or 75.8% of total assets. The liabilities amounted to EUR 42.7 million and equity to EUR 127.2 million. The largest liabilities included intreset bearing loans and borrowings (13.0 m€), suppliers payables and advances (8.7 m€), tax liabilities (7.0 m€) and payables to employees (5.4 m€).

Investments

In the 3 months of 2016, the Group’s expenditures on property, plant and equipment totalled EUR 8.8 million (+3.2 m€, +57.6%), of which EUR 0.6 million was invested into new gaming equipment (-0.4m€, -39.9%) and EUR 8.0 million (+4.4 m€, +82.8%) into construction of hotel and construction and reconstruction of casinos.

Cash flows

In the 3 months of 2016, the Group’s cash flows generated from operating activities amounted to EUR 9.6 million (+0.7 m€, +8.2%) and cash flows used in investing activities to EUR -18.5 million (-15.6 m€). Financing cash flows amounted to EUR +4.9 million (+4.8 m€). Net cash flows totalled EUR -4.0 million (-9.8 m€).

Staff

As at 31 March 2016, the Group employed 3,201 people, up by 545 y-o-y mostly due to expansion in Estonia, Latvia, Lithuania and Malta.

In the 3 months of 2016, total personnel expenses amounted to EUR 12.8 million (+2.0 m€, +19.0%). In the 3 months of 2016, 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 314 thousand (EUR 230 thousand in the 3 months of 2015) and EUR 37 thousand (EUR 37 thousand in the 3 months of 2015), respectively.

 

Consolidated statement of financial position

(EUR thousands) 31.03.2016 31.12.2015
ASSETS    
Current assets    
Cash and cash equivalents 30,697 34,710
Financial investments 1,664 1,835
Receivables and prepayments 6,480 5,537
Prepaid income tax 587 551
Inventories 1,627 1,366
Total current assets 41,055 43,999
     
Non-current assets    
Deferred tax assets 813 801
Financial investments 3,762 3,512
Other long-term receivables and prepayments 980 914
Investment property 288 288
Property, plant and equipment 65,341 58,877
Intangible assets 57,678 53,942
Total non-current assets 128,862 118,334
     
TOTAL ASSETS 169,917 162,333
     
     
LIABILITIES AND EQUITY    
Current liabilities    
Borrowings 227 292
Trade and other payables 26,615 27,680
Income tax payable 1,356 1,058
Provisions 1,491 1,842
Total current liabilities 28,689 30,872
     
Non-current liabilities    
Borrowings 13,562 8,079
Deferred tax liability 455 513
Total non-current liabilities 14,017 8,592
     
TOTAL LIABILITIES 42,706 39,464
     
EQUITY    
Share capital 60,716 60,716
Share premium 258 258
Statutory reserve capital 3,574 3,574
Other reserves 399 329
Translation reserves -976 -1,156
Retained earnings 57,053 51,822
Total equity attributable to equity holders of the parent 121,024 115,543
Non-controlling interest 6,187 7,326
TOTAL EQUITY 127,211 122,869
     
TOTAL LIABILITIES AND EQUITY 169,917 162,333

 

 

Consolidated statement of comprehensive income

(EUR thousands) Q1 2016 Q1 2015
Income from gaming transactions 42,514 36,724
Revenue 2,839 2,390
Other income 294 85
Total revenue and income 45,647 39,199
     
Cost of materials, goods and services -1,111 -893
Other operating expenses -22,574 -18,571
Staff costs -12,826 -10,780
Depreciation, amortisation and impairment -2,463 -1,836
Other expenses -173 -129
Total operating expenses -39,147 -32,209
     
Operating profit 6,500 6,990
     
Interest income 39 17
Interest expense -1 -7
Foreign exchange losses -10 -1
Other finance income and costs -2 -2
Total finance income and costs 26 7
     
Profit from operating activities 6,526 6,997
     
Income tax expense -1,062 -1,179
Net profit for the period 5,464 5,818
Attributable to equity holders of the parent company 5,099 5,470
Attributable to non-controlling interest 365 348
     
     
Other comprehensive income    
Currency translation differences 180 521
Total comprehensive profit for the period 5,644 6,339
Attributable to equity holders of the parent company 5,279 5,991
Attributable to non-controlling interest 365 348
     
     
Basic earnings per share* 3.4 3.6
Diluted earnings per share* 3.4 3.6

     * 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_Q1_2016_ENG.pdf 

« Back to list