In the first half of 2007, the Group continued vigorous expansion. On 12 April
our Romanian subsidiary Olympic Casino Bucharest S.r.l. signed an agreement
with the local casino operator Empire International Game World, acquiring the
latter's assets and becoming the owner of three casinos in the Romanian capital
Bucharest.
At the beginning of April, we completed the acquisition of Kristiine Kasiino AS
and Casinova OÜ. The operations of Kristiine Kasiino AS and Olympic Casino
Eesti AS were combined in the second quarter and the legal merger of the two
entities was finalised on 18 July when a corresponding entry was made in the
Commercial Register. The purpose of the transaction, which increased our
estimated share in the Estonian gaming market to 45%, was to expand operations
and reinforce our position in the Estonian gaming market. The casinos of
Kristiine Kasiino AS will be refurbished within a year. According to plan, the
revamp will cost around 80 million kroons (€5 million), most of which will be
spent on the acquisition of new gaming equipment.
In April 2007, we established a subsidiary in Slovakia in order to prepare the
ground for penetration of the Slovakian gaming market.
At the end of April, we completed the acquisition of an 80% stake in Casino
Polonia-Wroclaw Sp. z o.o. (“CP”). In May 2007, CP opened a new casino in a
Hilton Hotel in Warsaw. Investments in the new casino totalled around 110
million kroons (€7 million). With its 1500 square metres, 100 slot machines and
20 game tables, Olympic Casino Sunrise is the largest casino in Poland.
Implementation of our expansion plans continues in the second half-year. On 5
July, the Ukrainian subsidiary signed a preliminary agreement on the
acquisition of the leading Ukrainian casino operator Eldorado. The three
entities which are involved in the operation of Eldorado casinos will be
acquired after a final purchase agreement has been signed and the transaction
has been approved by the Ukrainian competition authority. We hope to finalise
the process in autumn 2007. Under the preliminary agreement, the interests
acquired will cost around 144 million kroons (€9.2 million).
In July, we acquired a 97.5% ownership in Kesklinna Hotelli OÜ with a view to
launche a new activity - the development of casino hotels and complexes.
Financial highlights
Q2 2007:
Revenue: 573.3 million kroons (year-on-year growth 52.8%)
Operating profit: 108.6 million kroons (year-on-year growth 49.2%)
Operating margin*: 18.9% (Q2 2006: 19.4%)
Profit before tax: 115.5 million kroons (year-on-year growth 66.7%)
Net profit**: 106.4 million kroons (year-on-year growth 84.4%)
Net margin***: 18.6% (Q2 2006: 15.4%)
I half of 2007:
Revenue: 1034.4 million kroons (year-on-year growth 42.8%)
Operating profit: 196.0 million kroons (year-on-year growth 10.2%)
Operating margin*: 18.9% (I half 2006: 24.6%)
Profit before tax: 212.5 million kroons (year-on-year growth 23.9%)
Net profit**: 189.0 million kroons (year-on-year growth 24.6%)
Net margin***: 18.3% (I half 2006: 20.9%)
* Operating margin = operating profit / revenue
** Net profit before minority interest
** Net margin = net profit / revenue
€1 = 15.6466 kroons
The Group's results for the first six months include the results of Kristiine
Kasiino AS entities (consolidated from 1 April) and Casino Polonia - Wroclaw
Sp. z.o.o. (consolidated from 1 May). Olympic Casino Sunrise, which generates
approximately two thirds of the revenues of CP, began operating at the end of
May. Olympic Casino Bucharest started its activities from 1 June with one
opened gaming hall, two gaming halls are closed for renovation.
The Group's Q2 consolidated revenues totalled 573.3 million kroons (€36.6
million), a strong 52.8% improvement on a year ago.
Q2 operating profit amounted to 108.6 million kroons (€6.9 million) and net
profit to 106.4 million kroons (€6.8 million). Compared with Q2 2006, operating
profit increased by a solid 49.2% and net profit by an exceptional 84.4%. Q2
operating margin was 18.9% and net margin 18.6%.
Consolidated revenues for the first half-year totalled 1,034.4 million kroons
(€66.1 million), 42.8% up on the first half of 2006.
The Group's operating profit for the first half of 2007 amounted to 196.0
million kroons (€12.5 million), 23.9% up on a year ago, and net profit surged
to 189.0 million kroons (€12.0 million), 24.6% up on a year ago. Operating
margin and net margin for the first six months of 2007 were 18.9% and 18.3%
respectively.
In Q1 we forecast that thanks to geographical expansion and growth in operating
volumes the first half of 2007 would generate revenues of 1.1 billion kroons
(€70.3 million) and an operating profit of 211 million kroons (€13.5 million).
Compared with the same period in 2006, revenue and operating profit forecasts
were 51.7% and 18.6% larger respectively.
Actual revenue and operating profit proved 6% and 7.1% smaller than projected
respectively. The differences between actual and projected results stemmed from
changes in the opening dates of new casinos.
Our forecasts for 2007 remain revenue of 2.67 billion kroons (€170.5 million),
60% up on 2006, and operating profit of 595 million kroons (€38.0 million), 34%
up on 2006. Forecasts for the current year will not be changed because of
ongoing acquisitions, stronger than expected results in Poland and a positive
trend in revenue growth.
Similarly to prior periods, the bulk , i.e. 95%, of consolidated revenue
resulted from gaming operations, other operations contributed 5%.
Distribution of consolidated revenue by geographical segments (in thousands of
kroons):
I half 2007 Proportion I half 2006 Proportion Revenue growth%
Estonia 402 988 39,0% 290 369 40,1% 38,8%
Latvia 316 397 30,6% 216 419 29,9% 46,2%
Lithuania 200 334 19,4% 179 761 24,8% 11,4%
Ukraine 69 150 6,7% 37 972 5,2% 82,1%
Belarus 3 569 0,3% - - -
Poland 40 721 3,9% - - -
Romania 1 224 0,1% - - -
Total 1 034 383 100% 724 521 100% 42,8%
€1 = 15.6466 kroons
The largest share of the Group's revenue was earned in Estonia. The
contributions of Ukraine and Poland increased notably but the highest
year-on-year growth rates were achieved in Ukraine and Latvia. The decline in
the proportion of Lithuanian revenues and the fact that revenue growth in
Lithuania is lagging behind the Group's average may be attributed to the
temporary closure of the leading casino in Kaunas (the hotel in which the
casino is located is being renovated) and the allocation of the Group's
investments to swiftly developing markets in Ukraine, Poland and Romania.
Consolidated operating expenses for the first half of 2007 totalled 838.4
million kroons (€53.6 million), 53.4% up on the 546.6 million kroons (€34.9
million) incurred a year ago. The largest expense item was labour costs which
extended to 272.5 million kroons (€17.4 million). The next in size were gaming
tax and activity licence expenses of 115 million kroons (€7.3 million),
depreciation and amortisation expenses of 107.7 million kroons (€6.9 million),
marketing expenses of 76 million kroons (€4.9 million) and buildings-related
lease expenses of 66.5 million kroons (€4.3 million). In the income statement,
gaming taxes and marketing and lease expenses are recognised in Other operating
expenses.
The increase in operating expenses is related, above all, to the Group's rapid
expansion and revenue growth. In absolute terms, the largest growth occurred in
labour costs which increased by 99.1 million kroons (€6.3 million), i.e. 57.2%
compared to a year ago. The increase in labour costs may be explained by the
Group's expansion and the opening of new casinos. The growth in gaming tax
expenses is related to the launch of new casinos and an increase in gaming tax
rates in Latvia. Depreciation and amortisation expenses have expanded due to
investment in new casinos, gaming equipment and information technology. The
rise in lease expenses results from the opening of new casinos while the growth
in marketing expenses stems from thriving sales which increase customers' bonus
points, and the costs of promoting new casinos.
Balance sheet and capital expenditures
At 30 June 2007, the consolidated balance sheet of Olympic Entertainment Group
AS stood at 2,378.8 million kroons (€152.0 million), up 3.0% on the 2,309.2
million kroons (€147.6 million) measured at 31 December 2006.
Current assets amounted to 699.8 million kroons (€44.7 million), accounting for
29.4% of total assets, while non-current assets amounted to 1,679.1 million
kroons (€107.3 million), accounting for 70.6% of total assets. The proportion
of current assets decreased due to the acquisition of subsidiaries, investment
and the distribution of dividends.
Consolidated liabilities totalled 242.6 million kroons (€15.5 million) and
equity equalled 2,136.2 million kroons (€136.5 million). The Group's
liabilities are consisting of regular liabilities arising monthly from common
operating activities. The largest liabilities comprised tax liabilities of 74.1
million kroons (€4.7 million), payables to employees of 55.7 million kroons
(€3.6 million), other accrued expenses 7.8 million kroons (€0.5 million),
trade payables of 36.4 million kroons (€2.3 million). Other liabilities include
finance lease liabilities of 25.5 million kroons (€1.6 million) and 43.1
million kroons (€2.8 million) included the deferred income tax liability,
payables to customers and provisions for winnings.
In the first six months of 2007, the Group's investments excluding business
combinations totalled 262.1 million kroons (€15.5 million). Expenditures on the
renovation of leased premises amounted to 77.1 million kroons (€4.9 million),
equipment acquisitions totalled 151.6 million kroons (€9.7 million), and
expenditures on other items of property, plant and equipment equalled 33.4
million kroons (€2.1 million). Business combinations increased the carrying
amount of property, plant and equipment by 140.8 million kroons (€9.0 million).
Intangible assets increased on account of assets and goodwill of 408.4 million
kroons (€26.1 million) acquired through business combinations. Software-related
investments totalled 1.6 million kroons (€0.1 million).
People
In connection with the opening of new casinos, the number of staff grew from
2,165 on 30 June 2006 to 3,386 on 30 June 2007, a 56% increase. At the end of
June, the Group employed 905 people in Estonia, 913 in Latvia, 742 in
Lithuania, 235 in Ukraine, 63 in Belarus, 400 in Poland and 128 in Romania.
Employee remuneration expenses for the first half of 2007 including social
taxes amounted to 272.5 million kroons (€17.4 million) against 173.3 million
kroons (€11.1 million) a year ago.
Results of casino operators
At the end of June 2007, the Group had 104 casinos with a total area of 29,200
square metres. A year ago, the number of casinos was 71 and their total area
20,282 square metres.
Number of casinos by markets:
30 June 2007 30 June 2006
Estonia 35 19
Latvia 36 38
Lithuania 10 8
Ukraine 11 6
Belarus 2 0
Poland 7 0
Romania 3 0
TOTAL 104 71
OLYMPIC CASINO EESTI AS
The legal merger of Olympic Casino Eesti AS (OCE) and Kristiine Kasiino AS was
successfully completed on 18 July. In Q2 preparations were made for rebranding
the first Kristiine Kasiino casinos and bringing them under the Olympic Casino
brand name. The first refurbished casino in Kristiine Centre was opened on 1
August 2007. Another former Kristiine Kasiino casino in Tallinn Coach Terminal
will reopen its doors in the nearest future and the casino at Mustika Shopping
Centre is also under renovation. The modernization and rebranding of Kristiine
Kasiino casinos should be completed within a year. At the end of June 2007,
there were 35 Olympic casinos in Estonia including 9 outside Tallinn; 24 of the
casinos operated under the Olympic Casino and 11 under the Kristiine Kasiino
brand name. The casinos had a total of 1,259 slot machines and 22 game tables.
OCE ended the first six months of 2007 with revenue of 363.5 million kroons
(€23.2 million), 28.2% up on a year ago. Net profit amounted to 149.5 million
kroons (€9.6 million), 20% up year-on-year. Profit growth was attained thanks
to revenue growth at existing casinos and a successful launch of new casinos.
OLYMPIC CASINO LATVIA SIA
In 2007, the priorities of Olympic Casino Latvia SIA (OCL) include transferring
most of the casinos of Baltic Gaming AS (BG) under the Olympic Casino brand
name (smaller casinos will remain under the Bumerangs name) and completing the
legal merger of the two companies. The legal merger was successfully finalised
on 5 July.
In the first half of 2007, no new casinos were opened but five former BG
casinos (2 in Ventspils, 1 in Riga and 2 in Daugavpils) were refurbished and
adjusted to Olympic Casino standards. The last preparations are being made for
opening a third refurbished casino in Daugavpils. At the end of June 2007, OCL
operated 36 casinos with a total of 1,128 slot machines and 40 game tables.
OCL's and BG's revenues for the first half of 2007 totalled 300.4 million
kroons (€19.2 million), a 1.5-fold improvement on a year ago. Net profit for
the period amounted to 34.7 million kroons (€2.2 million), a 9.4% decrease from
a year ago. Profit has shrunk because of larger gaming taxes (the rates rose at
the beginning of the year), increasing sales which boost jackpot and bonus
point expenses, the costs of combining BG and OCL, and investment-triggered
growth in depreciation expenses.
OLYMPIC CASINO GROUP BALTIJA UAB
Olympic Casino Group Baltija UAB (OCGB) did not open any new casinos in the
first half of 2007. However, the Lithuanian subsidiary intends to open two new
casinos in September. On 1 March, OCGB's leading casino in Kaunas was closed
for half a year for renovation and refurbishment. At the end of June 2007, OCGB
operated 10 casinos (including the one temporarily closed for renovation) with
398 slot machines and 62 game tables under the Olympic Casino brand name.
OCGB ended the first half of 2007 with revenue of 191.4 million kroons (€12.2
million), 10.6% up year-on-year. Compared with the first half of 2006, net
profit increased by 20.0% to 40.9 million kroons (€2.6 million).
OLYMPIC CASINO UKRAINE TOV
Olympic Casino Ukraine TOV (OCU) opened its tenth casino on Pobeda Prospekt at
the end of April 2007. The eleventh casino in Saksaganskovo street was opened
in June. All of OCU's casinos are located in Kiev. At the end of June 2007,
they had a total of 522 slot machines.
In the middle of July, OCU opened its twelfth casino in 40 Let Oktjabrja street
in Kiev.
OCU ended the first half of 2007 with revenue of 69.1 million kroons (€4.4
million), a 1.8-fold increase on a year ago, and a net profit of 4.8 million
kroons (€0.3 million). Net profit for the first half of 2006 amounted to 2.2
million kroons (€0.1 million). Profit growth may be attributed to strong
revenue growth. Owing to rapid expansion, OCU's profit margin is lower than
that of the other Group entities.
OLYMPIC CASINO BEL IP
Olympic Casino Bel IP, which was established in July 2005, opened its first
casino in the middle of August 2006. The second slot casino was opened on 9 May
2007 in Pritytskovo district in Minsk. At present, Olympic Casino Bel IP is
preparing for the opening of three more Olympic Casinos.
The entity's revenue for the first half of 2007 amounted to 3.6 million kroons
(€0.2 million). Due to expenses incurred in connection with the opening of new
casinos, the reporting period ended in a loss of 11.2 million kroons (€0.7
million).
CASINO POLONIA - WROCLAW SP. Z.O.O
The Group penetrated the Polish gaming market in April 2007 by acquiring a 80%
stake in the Polish casino operator Casino Polonia-Wroclaw Sp.Z.o.o (CP).
Preparations for the project began already in September 2005. With the
transaction, the Group acquired seven Casino Polonia casinos in four Polish
cities - Warsaw, Wroclaw, Szczecin and Gorzow Wielkopolsk. The facilities will
soon be transferred under the Olympic Casino brand name.
On 29 May, CP opened a casino in a five-star Hilton Hotel in Warsaw. CP's
investments in the casino totalled 110 million kroons (€7 million). With its
1,500 square metres, 100 slot machines and 20 game tables, Olympic Casino
Sunrise is the largest casino in Poland.
CP ended the reporting period with revenue of 40.3 million kroons (€2.6
million). Due to investments made for the opening of the casinos, the period
ended in a loss of 7.9 million kroons (€0.5 million).
OLYMPIC CASINO BUCHAREST S.R.L.
On 12 April 2007, Olympic Casino Bucharest S.r.l. (OCR) signed an agreement for
the acquisition of the assets of Empire International Game World, one of the
best-known Romanian casino operators. Under the agreement, OCR acquired three
casinos in the Romanian capital, including Napoleon - one of the city's most
luxurious casinos located in Sofitel Hotel in Bucharest's World Trade Centre -
and two slot casinos which are also located in the centre of Bucharest.
Currently only the casino in Sofitel Hotel is open for business (it opened
doors on 1 June). The other two have been temporarily closed for renovations
which should be completed by 1 November. According to plan, the casino in
Sofitel Hotel will be renovated and extended at the end of the year.
In the first half of 2007 OCR generated revenue of 1.2 million kroons (€0.1
million). Redesign of operations gave rise to expenses which caused OCR to end
the period in a loss of 2.2 million kroons (€0.1 million).
The Group's key financials
I half 2007 I half 2006 Change
Revenue (kroons, millions) 1034.4 742.5 42.8%
EBITDA (kroons, millions) 303.7 265.8 14.3%
Operating profit (kroons, millions) 196.0 177.9 10.1%
Net profit (kroons, millions) 189.0 151.7 24.6%
EBITDA margin 29.4% 36.7% -19.9%
Operating margin 18.9% 24.6% -23.2%
Net margin 18.3% 20.9% -12.4%
Equity ratio 89.8% 63.4% 41.6%
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
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT | | | |
--------------------------------------------------------------------------------
| (unaudited, in thousands | | Q2, 2007 | Q2, 2006 | 1st half | 1st half |
| of Estonian kroons) | | | | 2007 | 2006 |
--------------------------------------------------------------------------------
| Revenue | | | | |
--------------------------------------------------------------------------------
| Sales revenue | 571 123 | 373 514 | 1 030 861 | 720 977 |
--------------------------------------------------------------------------------
| Other income | 2 197 | 1 717 | 3 522 | 3 544 |
--------------------------------------------------------------------------------
| Total revenue | 573 320 | 375 231 | 1 034 383 | 724 521 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Expenses | | | | |
--------------------------------------------------------------------------------
| Cost of materials, goods and | -14 461 | -11 804 | -25 606 | -22 302 |
| services used | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -235 431 | -136 779 | -431 034 | -261 231 |
--------------------------------------------------------------------------------
| Labour costs | -153 259 | -93 918 | -272 481 | -173 333 |
--------------------------------------------------------------------------------
| Depreciation and | -60 525 | -32 274 | -107 697 | -61 763 |
| amortisation | | | | |
--------------------------------------------------------------------------------
| Impairment of goodwill | 0 | -26 141 | 0 | -26 141 |
--------------------------------------------------------------------------------
| Other expenses | -1 024 | -1 515 | -1 537 | -1 823 |
--------------------------------------------------------------------------------
| Total expenses | -464 700 | -302 430 | -838 354 | -546 592 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Operating profit | 108 619 | 72 801 | 196 028 | 177 929 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Financial income and | | | | |
| expenses | | | | |
--------------------------------------------------------------------------------
| Interest income | 6 460 | 1 244 | 19 392 | 2 025 |
--------------------------------------------------------------------------------
| Interest expense | -10 | -3 171 | -14 | -5 999 |
--------------------------------------------------------------------------------
| Foreign exchange gains and | 454 | -1 528 | -2 938 | -2 436 |
| losses | | | | |
--------------------------------------------------------------------------------
| Net financing costs | 6 904 | -3 455 | 16 439 | -6 410 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit from ordinary | 115 523 | 69 346 | 212 468 | 171 519 |
| operations | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Income tax expense | -9 168 | -11 603 | -23 433 | -19 779 |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE PERIOD | 106 356 | 57 743 | 189 035 | 151 740 |
--------------------------------------------------------------------------------
| Attributable to minority | 2 912 | 3 452 | 6 258 | 6 470 |
| interest | | | | |
--------------------------------------------------------------------------------
| Attributable to equity | 103 444 | 54 291 | 182 777 | 145 270 |
| holders of the parent | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Basic earnings per share | 0,69 | 0,45 | 1,21 | 1,21 |
| (EEK) | | | | |
--------------------------------------------------------------------------------
| Diluted earnings per share | 0,69 | 0,45 | 1,21 | 1,21 |
| (EEK) | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| CONSOLIDATED INCOME STATEMENT | | | |
--------------------------------------------------------------------------------
| (unaudited, in thousands | | Q2, 2007 | Q2, 2006 | 1st half | 1st half |
| of euro) | | | | 2007 | 2006 |
--------------------------------------------------------------------------------
| Revenue | | | | |
--------------------------------------------------------------------------------
| Sales revenue | 36 501 | 23 872 | 65 884 | 46 079 |
--------------------------------------------------------------------------------
| Other income | 140 | 110 | 225 | 227 |
--------------------------------------------------------------------------------
| Total revenue | 36 642 | 23 982 | 66 109 | 46 305 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Expenses | | | | |
--------------------------------------------------------------------------------
| Cost of materials, goods and | -924 | -754 | -1 637 | -1 425 |
| services used | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -15 047 | -8 742 | -27 548 | -16 696 |
--------------------------------------------------------------------------------
| Labour costs | -9 795 | -6 002 | -17 415 | -11 078 |
--------------------------------------------------------------------------------
| Depreciation and | -3 868 | -2 063 | -6 883 | -3 947 |
| amortisation | | | | |
--------------------------------------------------------------------------------
| Impairment of goodwill | 0 | -1 671 | 0 | -1 671 |
--------------------------------------------------------------------------------
| Other expenses | -65 | -97 | -98 | -117 |
--------------------------------------------------------------------------------
| Total expenses | -29 700 | -19 329 | -53 581 | -34 934 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Operating profit | 6 942 | 4 653 | 12 529 | 11 372 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Financial income and | | | | |
| expenses | | | | |
--------------------------------------------------------------------------------
| Interest income | 413 | 79 | 1 239 | 129 |
--------------------------------------------------------------------------------
| Interest expense | -1 | -203 | -1 | -383 |
--------------------------------------------------------------------------------
| Foreign exchange gains and | 29 | -98 | -188 | -156 |
| losses | | | | |
--------------------------------------------------------------------------------
| Net financing costs | 441 | -221 | 1 051 | -410 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Profit from ordinary | 7 383 | 4 432 | 13 579 | 10 962 |
| operations | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| Income tax expense | -586 | -742 | -1 498 | -1 264 |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE PERIOD | 6 797 | 3 690 | 12 082 | 9 698 |
--------------------------------------------------------------------------------
| Attributable to minority | 186 | 221 | 400 | 414 |
| interest | | | | |
--------------------------------------------------------------------------------
| Attributable to equity | 6 611 | 3 470 | 11 682 | 9 284 |
| holders of the parent | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Basic earnings per share (€) | 0,04 | 0,03 | 0,08 | 0,08 |
--------------------------------------------------------------------------------
| Diluted earnings per share | 0,04 | 0,03 | 0,08 | 0,08 |
| (€) | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| CONSOLIDATED BALANCE SHEET | | | |
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| (unaudited, in thousands | | | 30 Jun | 30 Jun | 31 Dec |
| of Estonian kroons) | | | 2007 | 2006 | 2006 |
--------------------------------------------------------------------------------
| Current assets | | | | | |
--------------------------------------------------------------------------------
| Cash and cash | | | 597 215 | 218 762 | 1 234 658 |
| equivalents | | | | | |
--------------------------------------------------------------------------------
| Short-term financial | | | 0 | 354 | 0 |
| investments | | | | | |
--------------------------------------------------------------------------------
| Trade receivables | | | 6 985 | 10 157 | 7 181 |
--------------------------------------------------------------------------------
| Other receivables and | | | 64 184 | 36 212 | 41 902 |
| prepayments | | | | | |
--------------------------------------------------------------------------------
| Prepaid income tax | | | 7 972 | 0 | 6 388 |
--------------------------------------------------------------------------------
| Inventories | | | 23 407 | 26 820 | 10 507 |
--------------------------------------------------------------------------------
| Total current assets | | | 699 763 | 292 305 | 1 300 637 |
--------------------------------------------------------------------------------
| Non-current assets | | | | | |
--------------------------------------------------------------------------------
| Deferred tax assets | | | 1 967 | 2 492 | 3 204 |
--------------------------------------------------------------------------------
| Shares in associates | | | 0 | 11 | 0 |
--------------------------------------------------------------------------------
| Other financial | | | 18 243 | 20 504 | 18 311 |
| investments | | | | | |
--------------------------------------------------------------------------------
| Other long-term | | | 10 450 | 0 | 42 554 |
| receivables | | | | | |
--------------------------------------------------------------------------------
| Investment property | | | 31 819 | 30 307 | 31 819 |
--------------------------------------------------------------------------------
| Property, plant and | | | 1 067 989 | 652 902 | 770 471 |
| equipment | | | | | |
--------------------------------------------------------------------------------
| Intangible assets | | | 548 618 | 144 839 | 142 206 |
--------------------------------------------------------------------------------
| Total non-current assets | | | 1 679 086 | 851 056 | 1 008 564 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | | | 2 378 849 | 1 143 360 | 2 309 201 |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| LIABILITIES AND EQUITY | | | | | |
--------------------------------------------------------------------------------
| (unaudited, in thousands | | | 30 Jun | 30 Jun | 31 Dec |
| of Estonian kroons) | | | 2007 | 2006 | 2006 |
--------------------------------------------------------------------------------
| LIABILITIES | | | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | | | |
--------------------------------------------------------------------------------
| Interest-bearing loans | | | 6 390 | 78 233 | 174 |
| and borrowings | | | | | |
--------------------------------------------------------------------------------
| Customer advances | | | 16 205 | 4 432 | 15 340 |
--------------------------------------------------------------------------------
| Trade payables | | | 36 396 | 93 724 | 97 139 |
--------------------------------------------------------------------------------
| Income tax liability | | | 18 477 | 14 801 | 20 304 |
--------------------------------------------------------------------------------
| Other tax liabilities | | | 55 580 | 22 297 | 30 330 |
--------------------------------------------------------------------------------
| Other accrued payables | | | 63 567 | 36 232 | 43 515 |
--------------------------------------------------------------------------------
| Provisions | | | 8 978 | 8 545 | 16 213 |
--------------------------------------------------------------------------------
| Total current | | | 205 593 | 258 263 | 223 015 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Non-current liabilities | | | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | | | 17 791 | 8 097 | 12 182 |
--------------------------------------------------------------------------------
| Interest-bearing loans | | | 19 220 | 152 018 | 991 |
| and borrowings | | | | | |
--------------------------------------------------------------------------------
| Total non-current | | | 37 012 | 160 116 | 13 173 |
| liabilities | | | | | |
--------------------------------------------------------------------------------
| Total liabilities | | | 242 605 | 418 378 | 236 188 |
--------------------------------------------------------------------------------
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| Share capital | | | 1 510 000 | 400 | 754 000 |
--------------------------------------------------------------------------------
| Share premium | | | 227 273 | 25 598 | 968 800 |
--------------------------------------------------------------------------------
| Statutory capital | | | 19 444 | 4 | 4 |
| reserve | | | | | |
--------------------------------------------------------------------------------
| Translation reserves | | | -1 229 | -523 | -2 217 |
--------------------------------------------------------------------------------
| Retained earnings | | | 327 845 | 671 379 | 315 308 |
--------------------------------------------------------------------------------
| Total equity | | | 2 083 334 | 696 857 | 2 035 896 |
| attributable to equity | | | | | |
| holders of the parent | | | | | |
--------------------------------------------------------------------------------
| Minority interest | | | 52 910 | 28 125 | 37 118 |
--------------------------------------------------------------------------------
| Total equity | | | 2 136 244 | 724 982 | 2 073 013 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND | | | 2 378 849 | 1 143 360 | 2 309 201 |
| EQUITY | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
--------------------------------------------------------------------------------
| | | | | | |
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| CONSOLIDATED BALANCE SHEET | | | |
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| ASSETS | | | | | |
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| (unaudited, in thousands | | | 30 Jun | 30 Jun | 31 Dec |
| of euro) | | | 2007 | 2006 | 2006 |
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| Current assets | | | | | |
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| Cash and cash | | | 38 169 | 13 981 | 78 909 |
| equivalents | | | | | |
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| Short-term financial | | | 0 | 23 | 0 |
| investments | | | | | |
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| Trade receivables | | | 446 | 649 | 459 |
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| Other receivables and | | | 4 102 | 2 314 | 2 678 |
| prepayments | | | | | |
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| Prepaid income tax | | | 509 | 0 | 408 |
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| Inventories | | | 1 496 | 1 714 | 672 |
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| Total current assets | | | 44 723 | 18 682 | 83 126 |
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| Non-current assets | | | | | |
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| Deferred tax assets | | | 126 | 159 | 205 |
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| Shares in associates | | | 0 | 1 | 0 |
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| Other financial | | | 1 166 | 1 310 | 1 170 |
| investments | | | | | |
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| Other long-term | | | 668 | 0 | 2 720 |
| receivables | | | | | |
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| Investment property | | | 2 034 | 1 937 | 2 034 |
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| Property, plant and | | | 68 257 | 41 728 | 49 242 |
| equipment | | | | | |
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| Intangible assets | | | 35 063 | 9 257 | 9 089 |
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| Total non-current assets | | | 107 313 | 54 392 | 64 459 |
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| TOTAL ASSETS | | | 152 036 | 73 074 | 147 585 |
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| | | | | | |
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| LIABILITIES AND EQUITY | | | | | |
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| (unaudited, in thousands | | | 30 Jun | 30 Jun | 31 Dec |
| of euro) | | | 2007 | 2006 | 2006 |
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| LIABILITIES | | | | | |
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| Current liabilities | | | | | |
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| Interest-bearing loans | | | 408 | 5 000 | 11 |
| and borrowings | | | | | |
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| Customer advances | | | 1 036 | 283 | 980 |
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| Trade payables | | | 2 326 | 5 990 | 6 208 |
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| Income tax liability | | | 1 181 | 946 | 1 298 |
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| Other tax liabilities | | | 3 552 | 1 425 | 1 938 |
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| Other accrued payables | | | 4 063 | 2 316 | 2 781 |
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| Provisions | | | 574 | 546 | 1 036 |
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| Total current | | | 13 140 | 16 506 | 14 253 |
| liabilities | | | | | |
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| Non-current liabilities | | | | | |
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| Deferred tax liability | | | 1 137 | 518 | 779 |
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| Interest-bearing loans | | | 1 228 | 9 716 | 63 |
| and borrowings | | | | | |
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| Total non-current | | | 2 365 | 10 233 | 842 |
| liabilities | | | | | |
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| Total liabilities | | | 15 505 | 26 739 | 15 095 |
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| EQUITY | | | | | |
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| Share capital | | | 96 507 | 26 | 48 189 |
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| Share premium | | | 14 525 | 1 636 | 61 918 |
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| Statutory capital | | | 1 243 | 0 | 0 |
| reserve | | | | | |
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| Translation reserves | | | -79 | -33 | -142 |
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| Retained earnings | | | 20 953 | 42 909 | 20 152 |
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| Total equity | | | 133 149 | 44 537 | 130 117 |
| attributable to equity | | | | | |
| holders of the parent | | | | | |
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| Minority interest | | | 3 382 | 1 797 | 2 372 |
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| Total equity | | | 136 531 | 46 335 | 132 490 |
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| TOTAL LIABILITIES AND | | | 152 036 | 73 074 | 147 585 |
| EQUITY | | | | | |
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Additional information:
Andri Avila
Olympic Entertainment Group
Member of the Management Board
tel +372 667 1250
e-mail: andri.avila@oc.eu
www.olympic-casino.com
Unaudited consolidated operating results for the first half of 2007
| Source: Olympic Entertainment Group AS