OEG unaudited consolidated operating results for the first half of 2008 Financial highlights I half of 2008: Revenue: 1395.3 million kroons (year-on-year growth 34.9%) EBIDTA: 269.1 million kroons (year-on-year decrease 11.4%) Operating profit: 99.4 million kroons (year-on-year decrease 49.3%) Operating margin*: 7.1% (I half 2007: 18.9%) Profit before tax: 112.9 million kroons (year-on-year decrease 46.9%) Net profit**: 97.4 million kroons (year-on-year decrease 48.4%) Net margin***: 7.0% (I half 2007: 18.3%) * 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 half-year totalled 1,389.5 million kroons (88.8 million euros). Total consolidated revenue (sales revenue and other income) surged to 1,395.3 million kroons (89.2 million euros), 34.9% up on the first half-year of 2007 total consolidated revenue of 1,034.4 million kroons (66.1 million euros). In the first half-year of 2008 94% of concern consolidated revenue was formed by gaming operations and 6% of other income. In 2007 H1 gaming revenues accounted for 93% and other revenues for 7% of consolidated revenue. -------------------------------------------------------------------------------- | External revenue by segments | | | | -------------------------------------------------------------------------------- | | I half 2008 | Growth | Proportion | I half 2007 | Proportion | -------------------------------------------------------------------------------- | Estonia | 400,344 | -0.7% | 28.7% | 402,988 | 39.0% | -------------------------------------------------------------------------------- | Latvia | 329,503 | 4.1% | 23.6% | 316,397 | 30.6% | -------------------------------------------------------------------------------- | Lithuania | 226,414 | 13.0% | 16.2% | 200,333 | 19.4% | -------------------------------------------------------------------------------- | Ukraine | 151,703 | 119.4% | 10.9% | 69,150 | 6.7% | -------------------------------------------------------------------------------- | Belarus | 12,901 | 261.6% | 0.9% | 3,568 | 0.3% | -------------------------------------------------------------------------------- | Poland | 249,681 | 513.1% | 17.9% | 40,722 | 3.9% | -------------------------------------------------------------------------------- | Romania | 20,460 | - | 1.5% | 1,225 | 0.1% | -------------------------------------------------------------------------------- | Slovakia | 4,266 | - | 0.3% | - | - | -------------------------------------------------------------------------------- | Total | 1,395,272 | 34.9% | 100.0% | 1,034,383 | 100.0% | -------------------------------------------------------------------------------- €1 = 15.6466 kroons At the end of first half-year 2008, the Group had 130 casinos with a total area of 36,617 square metres. At the end of first half-year 2007, the number of casinos was 105 and their total area was 29,200 square metres. The number of operating casinos increased by 25 compared to the same period of last year. During the first half-year, 10 new casinos were opened in Lithuania, Ukraine, Romania and Slovakia and 2 casinos were closed. 14 casinos were renovated - 4 former Kristiine Kasiino´s in Estonia, 6 former Baltic Gaming casinos in Latvia, 3 former Eldorados in Ukraine and 1 casino in Poland. -------------------------------------------------------------------------------- | Number of casinos by | | | | | segments | | | | -------------------------------------------------------------------------------- | | 30 June 2008 | 31 December | 30 June 2007 | | | | 2007 | | -------------------------------------------------------------------------------- | Estonia | 35 | 35 | 35 | -------------------------------------------------------------------------------- | Latvia | 36 | 38 | 36 | -------------------------------------------------------------------------------- | Lithuania | 16 | 15 | 10 | -------------------------------------------------------------------------------- | Ukraine | 23 | 19 | 11 | -------------------------------------------------------------------------------- | Belarus | 4 | 4 | 2 | -------------------------------------------------------------------------------- | Poland | 8 | 8 | 8 | -------------------------------------------------------------------------------- | Romania | 7 | 3 | 3 | -------------------------------------------------------------------------------- | Slovakia | 1 | - | - | -------------------------------------------------------------------------------- | Total | 130 | 122 | 105 | -------------------------------------------------------------------------------- Consolidated operating profit amounted to 99.4 million kroons (6.4 million euros), 49.3% down compared with the first half-year of 2007. Consolidated net profit equalled 97.4 million kroons (6.2 million euros), a 48.5% decrease from the 189.0 million kroons (12.1 million euros) earned in the first half-year of 2007. 2008 second quarter results were expectedly influenced by slight seasonal volatility, expenses related to expansion and to new casinos opening in amount of 27.5 million kroons (1.8 million euros) and relative weakness of Baltic gaming markets, which partially comes from overall cooling of economic climate, but partially also from additional administrative measures set up on gaming operators. Obligation of casino clients´ registration in Lithuania came into force since June 1st, which reduced a number of visits in June by approximately 15%. According to worldwide experience in such cases previous number of visits re-establishes itself within the period of three till six moths. In addition a complete smoking ban came into force in Lithuania since July 1st and will probably negatively influence third quarter results of Lithuanian subsidiary. In Estonia a smoking ban came into force since June 1st. In comparison with the previous year Estonian gaming market has decreased by approximately 15%. Influenced by overall difficult economic situation, the similar gaming markets´ development trends can be observed in the majority of other states. In spite of difficult market situation in the Baltics, in first half year 2008 OEG concern has continued its aggressive investment and expansion activity on all markets. In addition to opened and renovated casinos on existing markets, a first casino was opened in Slovakia`s capital Bratislava in Radisson SAS hotel, which start has exceeded our expectations. Within the current year 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 are continued. In second quarter, these activities resulted best in Latvian subsidiaries, where the profit has grown over five times in comparison with the first quarter, while revenue numbers remained at the same level. Depending on the development of the overall economic climate we expect margins to start growing not before the end of this year. Consolidated expenses for the first half year 2008 totalled to 1,295.9 million kroons (82.8 million euros), 54.6% up compared to the first half year 2007. The largest expense items were personnel expenses including social charges which amounted to 421.7 million kroons (30.0 million euros), followed by gaming tax expenses of 234.2 million kroons (15.0 million euros), depreciation and amortisation expense of 169.7 million kroons (10.8 million euros), premises rental expenses of 140.9 million kroons (9.0 million euros) and marketing and jackpot expenses of 105.6 million kroons (6.7 million euros). In comparison with last year, the strongest cost growth in absolute figures came from personnel expenses - 149.2 million kroons (9.5 million euros) - a 54.8% up on year ago, gaming tax expenses - 119.2 million kroons (7.6 million euros) - a 103.7% growth, and premises rent expenses - 74.4 million kroons (4.8 million euros) - a 111.8% growth. Estonian segment Due to the Group's expansion, the Estonian segment's contribution to consolidated revenue has declined from 39.0% to 28.7% compared to the same period of a previous year. In the first half-year of 2008, the segment's external revenue amounted to 400.3 million kroons (25.6 million euros) including gaming revenue of 369.4 million kroons (23.6 million euros). In first half-year 2008, the segment's external revenue decreased by 0.7% compared to the same period of last year, growth of gaming revenue was 3%. The decrease in revenues was mostly caused by the decrease in hotel revenues by 4.6 million kroons (0.3 million euros) compared to the first half-year result of the last year. According to the Estonian Gaming Operator Association, in first half-year 2008 the market share of Olympic Casino Eesti AS was 44%. Total revenue of Estonian gaming market has shown a declining trend, decreasing in the second quarter about 11% in comparison with the first quarter and approximately 15% on a half year comparison basis. Gaming revenues were negatively influenced by a smoking ban in casinos since June. At the end of June 2008, there were 35 Olympic Casinos in Estonia with a total of 1,294 slot machines and 24 gaming tables. During the first half of the year, 4 former Kristiine Kasiino facilities were renovated. In first half-year of 2008 the Estonian segment's operating profit has decreased by 22.7% and amounted to 77.5 million kroons (5.0 million euros). Profit decrease has been primarily caused by slowdown of the revenue growth and increase of rental and depreciation expenses. Latvian segment The Latvian segment accounts for 23.6% of the Group's consolidated revenue. In the first half-year of 2008, the segment's external revenue amounted to 329.5 million kroons (21.1 million euros) including gaming revenue of 300.4 million kroons (19.2 million euros) and other revenues of 29.1 million kroons (1.9 million euros). In the first half-year of 2008, the segment's external revenue grew by 4.1% compared to the same period last year. Within the period, when Latvian gaming market decreased by 0.3%, Group`s market share grew up from 14.0 % to 15.2%. The Latvian segment's operating profit amounted to 13.8 million kroons (0.9 million euros), 72.2% down compared to the first half-year of 2007. Profit decrease has been caused by increase of operating expenses and slowdown of the revenue growth. In connection with the realization of the process of streamlining organizational structures in Latvian subsidiaries, the operating profit in the second quarter of the current year grew more than five times compared to the first quarter. The full cost effect of restructuring process will appear at the end of the year. During the first half-year, 6 former Baltic Gaming casinos were renovated and 2 former Baltic Gaming casinos were closed. At the end of June 2008, the Latvian segment was operating 36 casinos with a total of 1,268 slot machines and 40 gaming tables. Lithuanian segment The Lithuanian segment's contribution to consolidated revenue has declined from 19.4% to 16.2% compared to the same period of a previous year. In the first half-year of 2008, the segment's external revenue amounted to 226.4 million kroons (14.5 million euros) including gaming revenue of 215.6 million kroons (13.8 million euros) and other revenues of 10.8 million kroons (0.7 million euros). In comparison with the same period of last year, the first half-year revenue growth composed 13.0%. In the first half-year the segments`s operating profit has declined 20.4% compared to the first half-year of 2007 and has reached 41.8 million kroons (2.7 million euros). Lithuanian segment revenues and profit were negatively influenced by casino clients´ registration obligation, which came into force since June. Another negative influence is expected from total smoking ban at casinos, which came into force with a legal adjustment since July. At the end of June 2008, the Lithuanian segment was operating 10 casinos under the Olympic Casino brand 6 under the Bumerangas brand. The casinos have a total of 640 slot machines and 75 gaming tables. Ukrainian segment The segment`s external revenue increased 1.2 times compared to the revenues of first half-year of 2007. The segment`s revenues grew up to 10.9% of the Group's consolidated revenue. In the first half-year of 2008, the segment's external revenue amounted to 151.7 million kroons (9.7 million euros) including gaming revenue of 142.2 million kroons (9.1 million euros) and other revenues of 9.5 million kroons (0.6 million euros). The Ukrainian segment's operating loss for the first half-year of 2008 amounted to 6.3 million kroons (0.4 million euros). The operating loss of the first half year 2007 was 11.0 million kroons (0.7 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 19.4 million kroons (1.2 million euros). During the first half-year, 4 new casinos were opened and 3 former Eldorado casinos were renovated. At the end of June 2008, the Ukrainian segment was operating 23 casinos with a total of 1001 slot machines and 25 gaming tables. Belarusian segment At the end of June 2008, Olympic Casino Bel IP was operating 4 casinos with a total of 199 slot machines in Minsk. The Belarusian segment accounts for less than 1% of the Group's consolidated revenue. During the first half-year of 2008, revenue has grown 2.6 times compared to the first half-year of 2007 and amounted to 12.9 million kroons (0.8 million euros). The operating loss of Belarusian segment was 9.3 million kroons (0.6 million euros). In July a fifth Belarusian Olympic Casino was opened at Aleksandrov Passazh mall in Minsk. Polish segment In the first half-year of 2008, the segment's external revenue amounted to 249.7 million kroons (16.0 million euros), accounting for 17.9% of the Group's consolidated revenue. Within the first half-year of 2008, revenue has grown more than 5 times compared to the first half-year of 2007. The growth in revenues is related to the fact, that Olympic Casino Sunrise in Hilton hotel was opened at the end of the last year´s second quater. During the first half-year, 1 former Casino Polonia casino was renovated, which related costs negatively affected operating profit by 4.2 million kroons (0.3 million euros). The segments`s operating profit amounted to 11.5 million kroons (0.7 million euros). At the end of June, Group was operating 8 casinos with 323 slots and 49 gaming tables in Poland. Romanian segment The Romanian segment finished the first half-year of 2008 with a revenue of 20.5 million kroons (1.3 million euros). Due to the expenses related to the opening of new casinos, the period ended with an operating loss of 22.6 million kroons (1.4 million euros). At the end of June 2008, Group was operating 7 casinos in Romania with a total of 236 slot machines. Starting from June, the casino located at Sofitel hotel in Bucharest is closed for renovation. Balance sheet At 30 June 2008, the consolidated balance sheet of Group composed 2,797.4 million kroons (178.8 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 composed by 1%. Current assets accounted for 522.1 million kroons (33.4 million euros) or 18.7% of total assets and non-current assets for 2,275.3 million kroons (145.4 million euros) or 81.3% of total assets. Intangible assets accounted for 689.1 million kroons (44.0 million euros) or 30.2% of non-current assets. At 30th June, Group´s consolidated liabilities amounted to 423.5 million kroons (27.1 million euros) and consolidated equity amounted to 2,373.9 million kroons (151.7 million euros). The largest part of liabilities is composed by bank loan for expansion financing in amount of 125.2 million kroons (8.0 million euros) and current liabilities from operations - tax commitments of 92.4 million kroons (5.9 million euros), trade payables in amount of 86.3 million kroons (5.5 million euros), payables to employees of 63.3 million kroons (4.0 million euros). Investments In the first half-year of 2008, the Group's expenditures on property, plant and equipment totalled 375.5 million kroons (24.0 million euros) including investment in gaming equipment of 257.8 million kroons (16.5 million euros), renovation of casinos in amount of 95.4 million kroons (6.1 million euros), and acquisition of other items of property, plant and equipment in amount of 18.4 million kroons (1.2 million euros). Expenditures on intangible assets amounted to 3.9 million kroons (0.2 million euros). People At 30 June 2008, the Group employed 4,086 people (31 December 2007: 4,004): 787 in Estonia, 895 in Latvia, 829 in Lithuania, 742 in Ukraine, 91 in Belarus, 541 in Poland, 100 in Romania and 101 in Slovakia. Employee remuneration expenses including relevant social charges amounted to 421.7 million kroons (27.0 million euros), in first half-year of 2007 the responding figure was 272.5 million kroons (17.4 million euros). The Group's key financials -------------------------------------------------------------------------------- | | I half 2008 | I half 2007 | Change | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Revenue (kroons, millions) | 1,395.3 | 1,034.4 | 34.9% | -------------------------------------------------------------------------------- | EBITDA(kroons, millions) | 269.1 | 303.7 | -11.4% | -------------------------------------------------------------------------------- | Operating profit (kroons, | 101.1 | 196.0 | -48.4% | | millions) | | | | -------------------------------------------------------------------------------- | Net profit (kroons, millions) | 99.2 | 189.0 | -47.5% | -------------------------------------------------------------------------------- | EBITDA margin | 19.3% | 29.4% | -34.3% | -------------------------------------------------------------------------------- | Operating margin | 7.2% | 18.9% | -61.8% | -------------------------------------------------------------------------------- | Net margin | 7.1% | 18.3% | -61.1% | -------------------------------------------------------------------------------- | Equity ratio | 84.9% | 89.8% | -5.5% | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Number of casinos at end of | 130 | 105 | +25 | | period | | | | -------------------------------------------------------------------------------- | Total area of casinos at end of | 36,617 | 29,200 | +7,417 | | period (in square metres) | | | | -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- | Number of slots at end of period | 4,961 | 3,724 | +1,237 | -------------------------------------------------------------------------------- | Number of game tables at end of | 213 | 167 | +46 | | 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 -------------------------------------------------------------------------------- | BALANCE SHEET | | | | | -------------------------------------------------------------------------------- | ASSETS | | | | | -------------------------------------------------------------------------------- | (In thousands of Estonian | | | 30 Jun | 31 Dec | | kroons) | | | 2008 | 2007 | -------------------------------------------------------------------------------- | Current assets | | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents | | | 351 051 | 501 800 | -------------------------------------------------------------------------------- | Short-term financial | | | 6 714 | 10 929 | | investments | | | | | -------------------------------------------------------------------------------- | Trade receivables | | | 15 409 | 14 309 | -------------------------------------------------------------------------------- | Other receivables and | | | 118 820 | 68 461 | | prepayments | | | | | -------------------------------------------------------------------------------- | Prepaid income tax | | | 1 755 | 2 567 | -------------------------------------------------------------------------------- | Inventories | | | 28 336 | 20 441 | -------------------------------------------------------------------------------- | Total current assets | | | 522 085 | 618 507 | -------------------------------------------------------------------------------- | Non-current assets | | | | | -------------------------------------------------------------------------------- | Deferred tax assets | | | 3 594 | 3 575 | -------------------------------------------------------------------------------- | Other financial | | | 7 176 | 7 248 | | investments | | | | | -------------------------------------------------------------------------------- | Other long-term | | | 12 729 | 11 955 | | receivables | | | | | -------------------------------------------------------------------------------- | Investment property | | | 57 909 | 52 924 | -------------------------------------------------------------------------------- | Property, plant and | | | 1 504 806 | 1 319 338 | | equipment | | | | | -------------------------------------------------------------------------------- | Intangible assets | | | 689 120 | 690 379 | -------------------------------------------------------------------------------- | Total non-current assets | | | 2 275 334 | 2 085 419 | -------------------------------------------------------------------------------- | TOTAL ASSETS | | | 2 797 419 | 2 703 926 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | LIABILITIES AND EQUITY | | | | | -------------------------------------------------------------------------------- | (In thousands of Estonian | | | 30 Jun | 31 Dec | | kroons) | | | 2008 | 2007 | -------------------------------------------------------------------------------- | LIABILITIES | | | | | -------------------------------------------------------------------------------- | Current liabilities | | | | | -------------------------------------------------------------------------------- | Interest-bearing loans and | | | 82 809 | 4 682 | | borrowings | | | | | -------------------------------------------------------------------------------- | Customer advances | | | 4 475 | 12 600 | -------------------------------------------------------------------------------- | Trade payables | | | 86 329 | 125 749 | -------------------------------------------------------------------------------- | Other payables | | | 9 825 | 9 293 | -------------------------------------------------------------------------------- | Income tax liability | | | 3 083 | 13 617 | -------------------------------------------------------------------------------- | Other tax liabilities | | | 71 459 | 70 870 | -------------------------------------------------------------------------------- | Other accrued payables | | | 67 884 | 73 662 | -------------------------------------------------------------------------------- | Provisions | | | 10 148 | 15 297 | -------------------------------------------------------------------------------- | Total current liabilities | | | 336 011 | 325 770 | -------------------------------------------------------------------------------- | Non-current liabilities | | | | | -------------------------------------------------------------------------------- | Deferred tax liability | | | 17 826 | 18 280 | -------------------------------------------------------------------------------- | Interest-bearing loans and | | | 69 660 | 24 787 | | borrowings | | | | | -------------------------------------------------------------------------------- | Total non-current | | | 87 486 | 43 067 | | liabilities | | | | | -------------------------------------------------------------------------------- | Total liabilities | | | 423 497 | 368 837 | -------------------------------------------------------------------------------- | EQUITY | | | | | -------------------------------------------------------------------------------- | Share capital | | | 1 510 000 | 1 510 000 | -------------------------------------------------------------------------------- | Share premium | | | 227 273 | 227 273 | -------------------------------------------------------------------------------- | Statutory capital reserve | | | 37 759 | 19 444 | -------------------------------------------------------------------------------- | Translation reserves | | | 15 546 | -1 344 | -------------------------------------------------------------------------------- | Retained earnings | | | 516 038 | 518 394 | -------------------------------------------------------------------------------- | Total equity attributable | | | 2 306 616 | 2 273 768 | | to equity holders of the | | | | | | parent | | | | | -------------------------------------------------------------------------------- | Minority interest | | | 67 305 | 61 321 | -------------------------------------------------------------------------------- | Total equity | | | 2 373 921 | 2 335 089 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND | | | 2 797 419 | 2 703 926 | | EQUITY | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | BALANCE SHEET | | | | | -------------------------------------------------------------------------------- | ASSETS | | | | | -------------------------------------------------------------------------------- | (In thousands of euro) | | | 30 Jun | 31 Dec | | | | | 2008 | 2007 | -------------------------------------------------------------------------------- | Current assets | | | | | -------------------------------------------------------------------------------- | Cash and cash equivalents | | | 22 436 | 32 071 | -------------------------------------------------------------------------------- | Short-term financial | | | 429 | 698 | | investments | | | | | -------------------------------------------------------------------------------- | Trade receivables | | | 985 | 915 | -------------------------------------------------------------------------------- | Other receivables and | | | 7 594 | 4 375 | | prepayments | | | | | -------------------------------------------------------------------------------- | Prepaid income tax | | | 112 | 164 | -------------------------------------------------------------------------------- | Inventories | | | 1 811 | 1 306 | -------------------------------------------------------------------------------- | Total current assets | | | 33 367 | 39 530 | -------------------------------------------------------------------------------- | Non-current assets | | | | | -------------------------------------------------------------------------------- | Deferred tax assets | | | 230 | 229 | -------------------------------------------------------------------------------- | Other financial | | | 459 | 463 | | investments | | | | | -------------------------------------------------------------------------------- | Other long-term | | | 814 | 764 | | receivables | | | | | -------------------------------------------------------------------------------- | Investment property | | | 3 701 | 3 382 | -------------------------------------------------------------------------------- | Property, plant and | | | 96 175 | 84 321 | | equipment | | | | | -------------------------------------------------------------------------------- | Intangible assets | | | 44 043 | 44 123 | -------------------------------------------------------------------------------- | Total non-current assets | | | 145 420 | 133 283 | -------------------------------------------------------------------------------- | TOTAL ASSETS | | | 178 788 | 172 812 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | LIABILITIES AND EQUITY | | | | | -------------------------------------------------------------------------------- | (In thousands of euro) | | | 30 Jun | 31 Dec | | | | | 2008 | 2007 | -------------------------------------------------------------------------------- | LIABILITIES | | | | | -------------------------------------------------------------------------------- | Current liabilities | | | | | -------------------------------------------------------------------------------- | Interest-bearing loans and | | | 5 292 | 299 | | borrowings | | | | | -------------------------------------------------------------------------------- | Customer advances | | | 286 | 805 | -------------------------------------------------------------------------------- | Trade payables | | | 5 517 | 8 037 | -------------------------------------------------------------------------------- | Other payables | | | 628 | 594 | -------------------------------------------------------------------------------- | Income tax liability | | | 4 567 | 4 529 | -------------------------------------------------------------------------------- | Other tax liabilities | | | 197 | 870 | -------------------------------------------------------------------------------- | Other accrued payables | | | 4 339 | 4 708 | -------------------------------------------------------------------------------- | Provisions | | | 649 | 978 | -------------------------------------------------------------------------------- | Total current liabilities | | | 21 475 | 20 821 | -------------------------------------------------------------------------------- | Non-current liabilities | | | | | -------------------------------------------------------------------------------- | Deferred tax liability | | | 1 139 | 1 168 | -------------------------------------------------------------------------------- | Interest-bearing loans and | | | 4 452 | 1 584 | | borrowings | | | | | -------------------------------------------------------------------------------- | Total non-current | | | 5 591 | 2 753 | | liabilities | | | | | -------------------------------------------------------------------------------- | Total liabilities | | | 27 066 | 23 573 | -------------------------------------------------------------------------------- | EQUITY | | | | | -------------------------------------------------------------------------------- | Share capital | | | 96 507 | 96 507 | -------------------------------------------------------------------------------- | Share premium | | | 14 525 | 14 525 | -------------------------------------------------------------------------------- | Statutory capital reserve | | | 2 413 | 1 243 | -------------------------------------------------------------------------------- | Translation reserves | | | 994 | -86 | -------------------------------------------------------------------------------- | Retained earnings | | | 32 981 | 33 131 | -------------------------------------------------------------------------------- | Total equity attributable | | | 147 420 | 145 320 | | to equity holders of the | | | | | | parent | | | | | -------------------------------------------------------------------------------- | Minority interest | | | 4 302 | 3 919 | -------------------------------------------------------------------------------- | Total equity | | | 151 721 | 149 239 | -------------------------------------------------------------------------------- | TOTAL LIABILITIES AND | | | 178 788 | 172 812 | | EQUITY | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | INCOME STATEMENT | | | | | -------------------------------------------------------------------------------- | (In thousands of Estonian | Q2 2008 | Q2 2007 | I half | I half | | kroons) | | | 2008 | 2007 | -------------------------------------------------------------------------------- | Revenue | | | | | -------------------------------------------------------------------------------- | Sales revenue | 697 247 | 571 123 | 1 389 499 | 1 030 861 | -------------------------------------------------------------------------------- | Other income | 3 003 | 2 197 | 5 773 | 3 522 | -------------------------------------------------------------------------------- | Total revenue | 700 250 | 573 320 | 1 395 272 | 1 034 383 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Expenses | | | | | -------------------------------------------------------------------------------- | Cost of materials, goods | -18 846 | -14 461 | -36 029 | -25 606 | | and services used | | | | | -------------------------------------------------------------------------------- | Other operating expenses | -354 532 | -235 431 | -658 639 | -431 034 | -------------------------------------------------------------------------------- | Labour costs | -211 214 | -153 259 | -421 667 | -272 481 | -------------------------------------------------------------------------------- | Depreciation and | -88 701 | -60 525 | -169 386 | -107 697 | | amortisation | | | | | -------------------------------------------------------------------------------- | Other expenses | -2 883 | -1 024 | -10 172 | -1 537 | -------------------------------------------------------------------------------- | Total expenses | -676 175 | -464 700 | -1 295 894 | -838 354 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Operating profit | 24 075 | 108 619 | 99 378 | 196 028 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Financial income and | | | | | | expenses | | | | | -------------------------------------------------------------------------------- | Interest income | 2 760 | 6 460 | 6 211 | 19 392 | -------------------------------------------------------------------------------- | Interest expense | -2 780 | -10 | -3 092 | -14 | -------------------------------------------------------------------------------- | Foreign exchange gains and | 24 595 | 454 | 10 385 | -2 938 | | losses | | | | | -------------------------------------------------------------------------------- | Net financing costs | 24 576 | 6 904 | 13 504 | 16 439 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Profit from ordinary | 48 650 | 115 523 | 112 883 | 212 468 | | operations | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Income tax expense | -13 142 | -9 168 | -15 441 | -23 433 | -------------------------------------------------------------------------------- | NET PROFIT FOR THE PERIOD | 35 508 | 106 356 | 97 442 | 189 035 | -------------------------------------------------------------------------------- | Attributable to minority | -166 | 2 912 | 5 984 | 6 258 | | interest | | | | | -------------------------------------------------------------------------------- | Attributable to equity | 35 674 | 103 444 | 91 458 | 182 777 | | holders of the parent | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Basic earnings per share | 0,24 | 0,69 | 0,61 | 1,21 | | (EEK) | | | | | -------------------------------------------------------------------------------- | Diluted earnings per share | 0,24 | 0,69 | 0,61 | 1,21 | | (EEK) | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | INCOME STATEMENT | | | | | -------------------------------------------------------------------------------- | (In thousands of euro) | Q2 2008 | Q2 2007 | I half | I half | | | | | 2008 | 2007 | -------------------------------------------------------------------------------- | Revenue | | | | | -------------------------------------------------------------------------------- | Sales revenue | 44 562 | 36 501 | 88 805 | 65 884 | -------------------------------------------------------------------------------- | Other income | 192 | 140 | 369 | 225 | -------------------------------------------------------------------------------- | Total revenue | 44 754 | 36 642 | 89 174 | 66 109 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Expenses | | | | | -------------------------------------------------------------------------------- | Cost of materials, goods | -1 204 | -924 | -2 303 | -1 637 | | and services used | | | | | -------------------------------------------------------------------------------- | Other operating expenses | -22 659 | -15 047 | -42 095 | -27 548 | -------------------------------------------------------------------------------- | Labour costs | -13 499 | -9 795 | -26 949 | -17 415 | -------------------------------------------------------------------------------- | Depreciation and | -5 669 | -3 868 | -10 826 | -6 883 | | amortisation | | | | | -------------------------------------------------------------------------------- | Other expenses | -184 | -65 | -650 | -98 | -------------------------------------------------------------------------------- | Total expenses | -43 215 | -29 700 | -82 823 | -53 581 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Operating profit | 1 539 | 6 942 | 6 351 | 12 529 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Financial income and | | | | | | expenses | | | | | -------------------------------------------------------------------------------- | Interest income | 176 | 413 | 397 | 1 239 | -------------------------------------------------------------------------------- | Interest expense | -178 | -1 | -198 | -1 | -------------------------------------------------------------------------------- | Foreign exchange gains and | 1 572 | 29 | 664 | -188 | | losses | | | | | -------------------------------------------------------------------------------- | Net financing costs | 1 571 | 441 | 863 | 1 051 | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Profit from ordinary | 3 109 | 7 383 | 7 215 | 13 579 | | operations | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Income tax expense | -840 | -586 | -987 | -1 498 | -------------------------------------------------------------------------------- | NET PROFIT FOR THE PERIOD | 2 269 | 6 797 | 6 228 | 12 082 | -------------------------------------------------------------------------------- | Attributable to minority | -11 | 186 | 382 | 400 | | interest | | | | | -------------------------------------------------------------------------------- | Attributable to equity | 2 280 | 6 611 | 5 845 | 11 682 | | holders of the parent | | | | | -------------------------------------------------------------------------------- | | | | | | -------------------------------------------------------------------------------- | Basic earnings per share | 0,02 | 0,04 | 0,04 | 0,08 | | (€) | | | | | -------------------------------------------------------------------------------- | Diluted earnings per share | 0,02 | 0,04 | 0,04 | 0,08 | | (€) | | | | | -------------------------------------------------------------------------------- Additional information: Andri Avila Member of the Management Board Olympic Entertainment Group Tel + 372 667 1250 E-mail: andri.avila@oc.eu www.olympic-casino.com
OEG unaudited consolidated operating results for the first half of 2008
| Source: Olympic Entertainment Group AS