MAIN FACTORS THAT INFLUENCED THE RESULT FOR 2008, COMPETITIVENESS OF THE GROUP
AND RESULTS
The Baltic gaming market contracted 20% in the fourth quarter of 2008. Although
October was the most successful month for the Group in 2008, almost all markets
where the Group operates were in strong decline. At the same time the Group has
managed to outperform the market average: during the year the market share of
OEG increased from 42% to 45% in Estonia, from 15% to 16% in Latvia and from 51%
to 54% in Lithuania. For the year as a whole, the biggest income gains were
recorded by the Group companies in Poland and Slovakia.
During 2008 the Group implemented an extensive efficiency program. The Group
closed 10 casinos that had negative cash flows and at the end of 2008 operated
133 casinos in eight countries. During the year the Group reduced the number of
jobs by 288 (approximately 7%) and at the end of the year had 3 924 employees.
Costs related to these activities amounted to 17.7 million kroons (1.1 million
euros) in 2008. The efficiency program implemented in 2008 is expected to have a
positive impact on the Group's earnings in 2009 in the total estimated amount of
166 million kroons (10.6 million euros).
The Group's results in 2008 were strongly affected by fluctuations in foreign
exchange rates (Ukrainian grivna, Polish zloty, Romanian leu) and accounting
losses resulting from re-assessment of several investments that will not have a
direct effect on the Group cash flows. Behind accounted foreign exchange rate
losses were intra-Group loan agreements.
The Group's operating earnings before non-capitalised investment costs, costs
related to optimization of structure and closure of casinos as well as costs
related to the adjustment of investments and changes in foreign exchange rates
were 135.9 million kroons in 2008 (8.7 million euros). However, the Group's
pre-income tax loss for 2008 amounted to 446.1 million kroons (28.5 million
euros) that was influenced by additional one-off costs of implementing the
efficiency program in the amount of 17.7 million kroons (1.1 million euros),
loss from changes in currency exchange rates in the amount of 263.4 million
kroons (16.8 million euros), re-assessment of assets in the amount of 197.1
million kroons (12.6 million euros) and non-capitalised investment costs in the
amount of 104.4 million kroons (6.7 million euros).
SIGNIFICANT CHANGES IN THE OPERATION OF THE GROUP IN Q1 2009
In the first quarter 2009 the Group reduced the remuneration payable to
employees by 20%.
During the first quarter 2009, the Group will additionally close 15 casinos that
have negative cash flows and continue to closely monitor the profitability of
several other casinos. During the same period the number of Group employees will
decrease by 356 positions or approximately 9%.
The Group plans to significantly modify its casino entertainment concept by
transforming most casinos that it operates into casino lounges. As a result of
these changes, casinos will have a wider floor area where customers can spend
leisure time without gaming. In addition, the range of products on offer in
casino bars will be expanded significantly: in addition to the current extensive
drinks' variety there will also be a food menu with favourable prices. The first
casino lounges complying with the new concept will be completed at the beginning
of the second quarter 2009.
In the light of shrinking demand and with the aim of implementing a new concept,
the Group plans to reduce the number of slot machines in most of its casinos
during the first quarter 2009. As a result of this, the fixed costs related to
the gaming tax will fall significantly. In addition, the Group plans to shorten
the opening time of several casinos (before, all casinos operated by Olympic
Casino were opened 24 hours a day).
The Group's rent cost will decline in the course of the first quarter 2009 both
through closure of casinos and fall of rentals of premises in existing casinos.
New agreements reached with owners of various rented premises will have a
positive influence on the cost structure of the Group since the second quarter
of 2009.
Financial highlights 2008:
Revenue: 2 800.8 million kroons
EBITDA from day-to-day operations*: 528.0 million kroons
EBIT from day-to-day operations*: 135.8 million kroons
Extraordinary expenses, incl
Non-capitalized investment expenses: -104.4 million kroons
Structure optimization and closure of casinos: - 17.7 million kroons
Provisions for casinos to be closed within 2009 Q1: -84.2 million kroons
Decline of goodwill: -98.4 million kroons
Decline of real estate investment value: -14.5 million kroons
Influence of currency Exchange rates changes: -263.4 million kroons
Interest revenues and costs net: 0.7 million kroons
Net profit before income tax: -446.1 million kroons
*Ordinary business activity is referred to as business activity excluding
investment activities, structure optimization, casinos closures, investment
value adjustment and currency exchange rates fluctuations.
€1 = 15.6466 kroons
The Group's consolidated sales revenue for the year of 2008 totaled 2,788.1
million kroons (178.1 million euros). Total consolidated revenue (sales revenue
and other income) surged to 2,800.8 million kroons (179.0 million euros), 11.3%
up on the 2007 total consolidated revenue of 2,517.4 million kroons (160.9
million euros). In the of 2008 94% of concern consolidated revenues was formed
by gaming operations and 6% of other income. In the year of 2007 gaming revenue
accounted for 93% and other revenues for 7% of consolidated revenue.
External revenue by segments
--------------------------------------------------------------------------------
| | 2008 | Growth | Proportio | 2007 | Proportio |
| | | | n | | n |
--------------------------------------------------------------------------------
| Estonia | 741,825 | -14.3% | 26.5% | 865,977 | 34.4% |
--------------------------------------------------------------------------------
| Latvia | 656,494 | -5.2% | 23.4% | 692,758 | 27.5% |
--------------------------------------------------------------------------------
| Lithuania | 415,332 | -11.7% | 14.8% | 470,480 | 18.7% |
--------------------------------------------------------------------------------
| Ukraine | 333,756 | 77.9% | 11.9% | 187,640 | 7.5% |
--------------------------------------------------------------------------------
| Belarus | 34,363 | 172.4% | 1.2% | 12,617 | 0.5% |
--------------------------------------------------------------------------------
| Polands | 548,715 | 102.6% | 19.6% | 270,838 | 10.8% |
--------------------------------------------------------------------------------
| Romania | 38,914 | 127.4% | 1.4% | 17,114 | 0.6% |
--------------------------------------------------------------------------------
| Slovakia | 31,442 | - | 1.2% | - | - |
--------------------------------------------------------------------------------
| Total | 2,800,84 | 11.3% | 100.0% | 2,517,42 | 100.0% |
| | 1 | | | 4 | |
--------------------------------------------------------------------------------
€1 = 15.6466 kroons
At the end of 2008, the Group had 133 casinos, with a total area of 38,877
square meters. At the end of 2007 the number of casinos was 122 and their total
area was 33,828 m². Within of the current year 21 new casinos were opened and 10
casinos were closed. 15 casinos were renovated- 4 former Kristiine Kasiino´s in
Estonia, 6 former Baltic Gaming casinos in Latvia, 4 former Eldorado casinos in
Ukraine and 1 casino in Poland.
--------------------------------------------------------------------------------
| Number of casinos by segments | |
--------------------------------------------------------------------------------
| | 31 December 2008 | 31 December 2007 | |
--------------------------------------------------------------------------------
| Estonia | 36 | 35 | |
--------------------------------------------------------------------------------
| Latvia | 33 | 38 | |
--------------------------------------------------------------------------------
| Lithuania | 16 | 15 | |
--------------------------------------------------------------------------------
| Ukraine | 24 | 19 | |
--------------------------------------------------------------------------------
| Belarus | 5 | 4 | |
--------------------------------------------------------------------------------
| Poland | 9 | 8 | |
--------------------------------------------------------------------------------
| Romania | 9 | 3 | |
--------------------------------------------------------------------------------
| Slovakia | 1 | - | |
--------------------------------------------------------------------------------
| Total | 133 | 122 | |
--------------------------------------------------------------------------------
Results of 2008 were majorly influenced by decreasing trend of the gaming
markets, which has sharpened in the second half year due to overall difficult
economic situation. Estonian gaming market has decreased by approximately 17% in
comparison with the 2007 and Latvian and Lithuanian markets by 12%. Additional
administrative measures set up on gaming operators in the end of first part of
2008 also partially influence gaming revenues (obligation of casinos´ clients
registration in Lithuania and smoking ban in casinos in Estonia and Lithuania).
Due to decrease of market situation in connection with overall economic
environment decline the management has conducted assets evaluation, which led to
assets value adjustment by a total amount of 197.1 million kroons (12.6 millon
Euros). Management decisions and evaluations are based on historical experience
and prognosis of events of the future periods, including development of overall
economic environment.
Group´s operating profit for the year of 2008 composed -183.3 million kroons
(-11.7 million euros), the operating profit for the year of 2007 totalled 431.5
million kroons (27.6 million euros). Consolidated net loss for the year of 2008
totalled -452.7 million kroons (-28.9 million euros), in 2007 the net profit
amounted 380.7 million kroons (24.3 million euros).
Consolidated expenses for the year of 2008 have grown 41.3% compared to the year
of 2007 and totaled to 2,984.2 million kroons (190.7 million euros). The largest
expense items were personnel expenses including social charges which amounted to
852.9 million kroons (54.5 million euros), followed by gaming tax expenses of
483.3 million kroons (30.9 million euros), depreciation expenses of 483.3
million kroons (30.9 million euros), premises rental expenses of 313.1 million
kroons (20 million euros) and marketing and jackpot expenses of 212.2 million
kroons (13.6 million euros).
In comparison with last year, the strongest cost growth in absolute figures came
from personnel expenses - total 201 million kroons (12.8 million euros) - a
30.8% up on year ago, gaming tax expenses - 153.3 million kroons (9.8 million
euros) - a 46.5% growth, premises rent expenses - 142.2 million kroons (9.1
million euros) - a 83.1% growth and depreciation expenses - total 130.4 million
kroons (8.3 million euros) - a 50.7%,
Estonian segment
In the year of 2008, the segment's external revenue amounted to 741.8 million
kroons (47.4 million euros) including gaming revenue of 681.6 million kroons
(43.6 million euros). Estonian segment has earned 26.5 % of Group's revenues,
while last year segment's proportion was 34.4%. The segment's external revenue
decreased by 14.3 % compared to 2007, 4th quarter revenues decreased 30% in
comparison with the same period last year.
Decrease in revenues reflects the development trend of Estonian gaming market -
according to the Estonian Gaming Operators´ association revenue decrease in 2008
composed approximately 17%. In addition to macroeconomical factors, gaming
revenues were negatively influenced by a smoking ban in casinos since June.
Within the year of 2008 the Group has opened 4 and closed 4 casinos in Estonia.
During the first half of the year 4 former casinos of Kristiine Kasiino were
renovated. At the end of 2008, there were 35 Olympic Casinos in Estonia with a
total of 1,415 slot machines and 22 gaming tables.
Estonian segment's operating profit for the 2008 has decreased by 72.2% in
comparison with 2007 and amounted to 59.0 million kroons (3.8 million euros).
Profit decrease has been primarily caused by slowdown of the revenues.
Extraordinary costs influenced a result by 31.5 million kroons (2.0 million
euros).
Latvian segment
The Latvian segment accounts for 23.4% of the Group's consolidated revenue. In
the 2008, the segment's external revenue amounted to 656.5 million kroons (42.0
million euros) including gaming revenue of 603.7 million kroons (38.6 million
euros). In the 2008, the segment's external revenue decreased by 5.2% compared
to the same period last year. Within 2008 Latvian gaming market has decreased by
12%.
The Latvian segment's operating profit for the 2008 amounted to 29.0 million
kroons (1.9 million euros), 72.1% down compared to the same period of 2007.
Extraordinary costs influenced a result by 37.0 million kroons (2.4 million
euros).
During the year of 2008, 6 former Baltic Gaming casinos were renovated and 5
former Baltic Gaming casinos were closed. At the end of December 2008, the
Latvian segment was operating 33 casinos with a total of 1,112 slot machines and
36 gaming tables.
Lithuanian segment
The Lithuanian segment accounts for 14.8% of the group´s consolidated revenue.
The segment's external revenue amounted to 415.3 million kroons (26.5 million
euros) including gaming revenue of 393.5 million kroons (25.1 million euros). In
comparison with the same period of last year, the revenue decrease composed
7.9%. Within 2008 Lithuanian gaming market has decreased by 12%.
Lithuanian segment operating profit composed 21.6 million kroons (1.4 million
euros), 84.4% down compared to the 2007. Lithuanian segment revenues and profit
were negatively influenced by casino clients´ registration obligation, which
came into force since June, and by total smoking ban at casinos, which came into
force with a legal adjustment since July. Extraordinary costs influenced a
result by 27.8 million kroons (1.8 million euros).
At the end of December 2008, the Lithuanian segment was operating 16 casinos
with the total of 640 slot machines and 74 gaming tables.
Ukrainian segment
The segment`s external revenue increased 77.9% times compared to the revenues of
2007. The segment`s proportion grew up to 11.9% of the Group's consolidated
revenue. In the 2008, the segment's external revenue amounted to 333.8 million
kroons (21.3 million euros) including gaming revenue of 311.7 million kroons
(19.9 million euros).
The Ukrainian segment's operating loss for the 2008 amounted to 76.7 million
kroons (4.9 million euros). The operating profit of the 2007 year was 20.5
million kroons (1.3 million euros). The segment's operating result was
influenced by expansion costs and extraordinary costs related to revaluation of
assets in the total amount of 106.3 million kroons (6.8 million euros).
During the year of 2008, 5 new casinos were opened and 3 former Eldorado casinos
were renovated. At the end of September 2008, the Ukrainian segment was
operating 24 casinos with a total of 1,138 slot machines and 25 gaming tables.
Belarus segment
At the end of December 2008, Olympic Casino Bel IP was operating 5 casinos with
a total of 261 slot machines in Minsk. In July a fifth Belarus Olympic Casino
was opened at Aleksandrov Passazh mall in Minsk.
The Belarus segment accounts for 1.2% of the Group's consolidated revenue.
During the 2008, revenue has grown 172.4% compared to the year of 2007 and
amounted to 34.2 million kroons (2.2 million euros). 2008 operating loss of
Belarus segment was 16.9 million kroons (1.1 million euros).
Polish segment
In the year of 2008, the Polish segment's external revenue amounted to 548.7
million kroons (35.1 million euros) accounting for 19.6% of the Group's
consolidated revenue. Within the 2008, revenue has grown 2 times compared to the
same period last year. The growth in revenues is related to the fact, that
Olympic Casino Sunrise at Hilton hotel was opened at the end of the last year´s
second quarter.
During 2008, 1 former Casino Polonia casino was renovated and 2 new casinos was
opened, which related costs negatively affected operating profit by 16.6 million
kroons (1.1 million euros). The segment's operating loss for the 2008 amounted
to 40.5 million kroons (2.6 million euros). Polish results were influenced by
growing depreciation expenses connected with unifying of calculation methods
with Concern accounting principles.
At the end of the 4rd quarter, concern was operating 9 casinos with 391 slots
and 61 gaming tables in Poland.
Romanian segment
The Romanian segment ended the year of 2008 with the revenue of 38.9 million
kroons (2.5 million euros). During the 2008 7 new casinos were opened in
Romanian capital Bucharest. Preparation works connected with new casinos´
openings, start-up period of the new casinos and extraordinary costs related to
revaluation of assets have brought along the expenses, which resulted in the
operating loss of 134.5 million kroons (8.6 million euros).
At the end of December 2008, concern was operating 9 casinos in Romania with a
total of 344 slot machines. Starting from June, the casino located at Sofitel
hotel in Bucharest is closed for renovation, reopening is planned for the first
quarter of 2009.
Slovakian segment
At the end of June 2008 Group has opened its first casino in Slovakia, at the
Radisson SAS Hotel located in the center of Bratislava with 61 slot machines and
11 gaming tables. In January 2009 a second Olympic casino was opened in Trnava.
Slovakia segment finished the year of 2008 with revenue of 31.4 million kroons
(2.0 million euros) and operating loss of 24.3 million kroons (1.6 million
euros). The segment's operating result was influenced by expansion costs in the
total amount of 8.1 million kroons (0.5 million euros).
Balance sheet
At 31 December 2008, the consolidated balance sheet of Group composed 2,405.4
million kroons (153.7 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 decline composed 8.3%.
Current assets accounted for 460.7 million kroons (29.4 million euros) or 19.2%
of total assets and non-current assets for 1,944.8 million kroons (124.3 million
euros) or 80.8% of total assets. Intangible assets accounted for 508.6 million
kroons (32.5 million euros) or 26.2% of non-current assets.
At 31 December 2008, Group's consolidated liabilities amounted to 559.7 million
kroons (35.8 million euros) and consolidated equity amounted to 2,845.8 million
kroons (118.0 million euros).
People
At 31 December 2008, the Group employed 3,924 people (31 December 2007: 4,004):
752 in Estonia, 780 in Latvia, 794 in Lithuania, 704 in Ukraine, 98 in Belarus,
543 in Poland, 157 in Romania and 96 in Slovakia.
During 2008 employee remuneration expenses including relevant social charges
amounted to 852.9 million kroons (54.5 million euros), in 2007 the responding
figure was 651.9 million kroons (41.7 million euros).
The Group's key financials
--------------------------------------------------------------------------------
| | 2008 | 2007 | Change |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Revenue (kroons, millions) | 2,800.8 | 2,517.4 | 11.3% |
--------------------------------------------------------------------------------
| EBITDA (kroons, millions) | 401.4 | 688.7 | -41.7% |
--------------------------------------------------------------------------------
| Operating profit (kroons, | -183.3 | 431.5 | -142.5% |
| millions) | | | |
--------------------------------------------------------------------------------
| Net profit (kroons, millions) | -452.6 | 380.7 | -218.9% |
--------------------------------------------------------------------------------
| EBITDA margin | 14.3% | 27.3% | |
--------------------------------------------------------------------------------
| Operating margin | -6.5% | 17.1% | |
--------------------------------------------------------------------------------
| Net margin | -16.2% | 15.1% | |
--------------------------------------------------------------------------------
| Equity ratio | 76.7% | 86,4% | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of casinos at end of | 133 | 122 | 11 |
| period | | | |
--------------------------------------------------------------------------------
| Total area of casinos at end of | 38,482 | 33,828 | 5,049 |
| period (in square meters) | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Number of slot machines at end | 5,301 | 4,690 | 611 |
| of period | | | |
--------------------------------------------------------------------------------
| Number of gaming tables at end | 218 | 202 | 16 |
| of period | | | |
--------------------------------------------------------------------------------
Underlying formulas
o EBITDA = earnings before financial expenses, taxes, depreciation, amortisation
and impairment losses
o Operating profit = profit before financial expenses and taxes
o Net profit = net profit for the period before minority interest
o EBITDA margin = EBITDA / revenue
o Operating margin = operating profit / revenue
o Net margin = net profit / revenue
o Equity ratio = equity / total assets
€1 = 15.6466 kroons
--------------------------------------------------------------------------------
| BALANCE SHEET | | | | |
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| (In thousands of Estonian kroons) | | 31 Dec | 31 Dec |
| | | 2008 | 2007 |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | | | 317 295 | 501 800 |
--------------------------------------------------------------------------------
| Short-term financial | | | 0 | 10 929 |
| investments | | | | |
--------------------------------------------------------------------------------
| Trade receivables | | | 4 832 | 14 309 |
--------------------------------------------------------------------------------
| Other receivables and | | | 87 115 | 68 461 |
| prepayments | | | | |
--------------------------------------------------------------------------------
| Prepaid income tax | | | 19 183 | 2 567 |
--------------------------------------------------------------------------------
| Inventories | | | 32 257 | 20 441 |
--------------------------------------------------------------------------------
| Total current assets | | | 460 682 | 618 507 |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Deferred tax assets | | | 13 178 | 3 575 |
--------------------------------------------------------------------------------
| Other financial | | | 15 943 | 7 248 |
| investments | | | | |
--------------------------------------------------------------------------------
| Other long-term | | | 48 050 | 11 955 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Investment property | | | 45 309 | 52 924 |
--------------------------------------------------------------------------------
| Property, plant and | | | 1 313 691 | 1 319 338 |
| equipment | | | | |
--------------------------------------------------------------------------------
| Intangible assets | | | 508 592 | 690 379 |
--------------------------------------------------------------------------------
| Total non-current assets | | | 1 944 763 | 2 085 419 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | | | 2 405 445 | 2 703 926 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| LIABILITIES AND EQUITY | | | | |
--------------------------------------------------------------------------------
| (In thousands of Estonian kroons) | | 31 Dec | 31 Dec |
| | | 2008 | 2007 |
--------------------------------------------------------------------------------
| LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-bearing loans and | | | 82 802 | 4 682 |
| borrowings | | | | |
--------------------------------------------------------------------------------
| Customer advances | | | 15 266 | 12 600 |
--------------------------------------------------------------------------------
| Trade payables | | | 67 943 | 125 749 |
--------------------------------------------------------------------------------
| Other payables | | | 9 310 | 9 293 |
--------------------------------------------------------------------------------
| Income tax liability | | | 447 | 13 617 |
--------------------------------------------------------------------------------
| Other tax liabilities | | | 87 233 | 70 870 |
--------------------------------------------------------------------------------
| Other accrued payables | | | 74 440 | 73 662 |
--------------------------------------------------------------------------------
| Provisions | | | 12 797 | 15 297 |
--------------------------------------------------------------------------------
| Total current liabilities | | | 350 238 | 325 770 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | | | 14 448 | 18 280 |
--------------------------------------------------------------------------------
| Interest-bearing loans and | | | 194 968 | 24 787 |
| borrowings | | | | |
--------------------------------------------------------------------------------
| Total non-current | | | 209 416 | 43 067 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Total liabilities | | | 559 654 | 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 | | | 34 838 | -1 344 |
--------------------------------------------------------------------------------
| Retained earnings | | | -29 943 | 518 394 |
--------------------------------------------------------------------------------
| Total equity attributable | | | 1 779 927 | 2 273 768 |
| to equity holders of the | | | | |
| parent | | | | |
--------------------------------------------------------------------------------
| Minority interest | | | 65 864 | 61 321 |
--------------------------------------------------------------------------------
| Total equity | | | 1 845 791 | 2 335 089 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND | | | 2 405 445 | 2 703 926 |
| EQUITY | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| BALANCE SHEET | | | | |
--------------------------------------------------------------------------------
| ASSETS | | | | |
--------------------------------------------------------------------------------
| (In thousands of euro) | | | 31 Dec | 31 Dec |
| | | | 2008 | 2007 |
--------------------------------------------------------------------------------
| Current assets | | | | |
--------------------------------------------------------------------------------
| Cash and cash equivalents | | | 20 279 | 32 071 |
--------------------------------------------------------------------------------
| Short-term financial | | | 0 | 698 |
| investments | | | | |
--------------------------------------------------------------------------------
| Trade receivables | | | 309 | 915 |
--------------------------------------------------------------------------------
| Other receivables and | | | 5 568 | 4 375 |
| prepayments | | | | |
--------------------------------------------------------------------------------
| Prepaid income tax | | | 1 226 | 164 |
--------------------------------------------------------------------------------
| Inventories | | | 2 062 | 1 306 |
--------------------------------------------------------------------------------
| Total current assets | | | 29 443 | 39 530 |
--------------------------------------------------------------------------------
| Non-current assets | | | | |
--------------------------------------------------------------------------------
| Deferred tax assets | | | 842 | 229 |
--------------------------------------------------------------------------------
| Other financial | | | 1 019 | 463 |
| investments | | | | |
--------------------------------------------------------------------------------
| Other long-term | | | 3 071 | 764 |
| receivables | | | | |
--------------------------------------------------------------------------------
| Investment property | | | 2 896 | 3 382 |
--------------------------------------------------------------------------------
| Property, plant and | | | 83 960 | 84 321 |
| equipment | | | | |
--------------------------------------------------------------------------------
| Intangible assets | | | 32 505 | 44 123 |
--------------------------------------------------------------------------------
| Total non-current assets | | | 124 293 | 133 283 |
--------------------------------------------------------------------------------
| TOTAL ASSETS | | | 153 736 | 172 812 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| LIABILITIES AND EQUITY | | | | |
--------------------------------------------------------------------------------
| (In thousands of euro) | | | 31 Dec | 31 Dec |
| | | | 2008 | 2007 |
--------------------------------------------------------------------------------
| LIABILITIES | | | | |
--------------------------------------------------------------------------------
| Current liabilities | | | | |
--------------------------------------------------------------------------------
| Interest-bearing loans and | | | 5 292 | 299 |
| borrowings | | | | |
--------------------------------------------------------------------------------
| Customer advances | | | 976 | 805 |
--------------------------------------------------------------------------------
| Trade payables | | | 4 342 | 8 037 |
--------------------------------------------------------------------------------
| Other payables | | | 595 | 594 |
--------------------------------------------------------------------------------
| Income tax liability | | | 29 | 4 529 |
--------------------------------------------------------------------------------
| Other tax liabilities | | | 5 575 | 870 |
--------------------------------------------------------------------------------
| Other accrued payables | | | 4 758 | 4 708 |
--------------------------------------------------------------------------------
| Provisions | | | 818 | 978 |
--------------------------------------------------------------------------------
| Total current liabilities | | | 22 384 | 20 821 |
--------------------------------------------------------------------------------
| Non-current liabilities | | | | |
--------------------------------------------------------------------------------
| Deferred tax liability | | | 923 | 1 168 |
--------------------------------------------------------------------------------
| Interest-bearing loans and | | | 12 461 | 1 584 |
| borrowings | | | | |
--------------------------------------------------------------------------------
| Total non-current | | | 13 384 | 2 753 |
| liabilities | | | | |
--------------------------------------------------------------------------------
| Total liabilities | | | 35 768 | 23 573 |
--------------------------------------------------------------------------------
| EQUITY | | | | |
--------------------------------------------------------------------------------
| Share capital | | | 96 507 | 96 507 |
--------------------------------------------------------------------------------
| Share premium | | | 14 525 | 14 525 |
--------------------------------------------------------------------------------
| Statutory capital reserve | | | 2 413 | 1 243 |
--------------------------------------------------------------------------------
| Translation reserves | | | 2 227 | -86 |
--------------------------------------------------------------------------------
| Retained earnings | | | -1 914 | 33 131 |
--------------------------------------------------------------------------------
| Total equity attributable | | | 113 758 | 145 320 |
| to equity holders of the | | | | |
| parent | | | | |
--------------------------------------------------------------------------------
| Minority interest | | | 4 209 | 3 919 |
--------------------------------------------------------------------------------
| Total equity | | | 117 968 | 149 239 |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES AND | | | 153 736 | 172 812 |
| EQUITY | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| INCOME STATEMENT | | | | |
--------------------------------------------------------------------------------
| (In thousands of Estonian | Q4 2008 | Q4 2007 | 2008 | 2007 |
| kroons) | | | | |
--------------------------------------------------------------------------------
| Revenue | | | | |
--------------------------------------------------------------------------------
| Sales revenue | 722 350 | 802 305 | 2 788 073 | 2 487 298 |
--------------------------------------------------------------------------------
| Other income | 0 | 23 601 | 12 768 | 30 126 |
--------------------------------------------------------------------------------
| Total revenue | 722 350 | 825 906 | 2 800 841 | 2 517 424 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Expenses | | | | |
--------------------------------------------------------------------------------
| Cost of materials, goods | -16 268 | -19 530 | -65 678 | -60 289 |
| and services used | | | | |
--------------------------------------------------------------------------------
| Other operating expenses | -437 487 | -370 170 | -1 448 143 | -1 103 019 |
--------------------------------------------------------------------------------
| Labour costs | -217 722 | -208 761 | -852 943 | -651 911 |
--------------------------------------------------------------------------------
| Depreciation and | -313 496 | -82 588 | -584 665 | -257 154 |
| amortisation | | | | |
--------------------------------------------------------------------------------
| Other expenses | -4 450 | -11 115 | -32 727 | -13 558 |
--------------------------------------------------------------------------------
| Total expenses | -989 423 | -692 164 | -2 984 156 | -2 085 931 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Operating profit | -267 073 | 133 742 | -183 315 | 431 493 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Financial income and | | | | |
| expenses | | | | |
--------------------------------------------------------------------------------
| Gain on investments in | 0 | 11 | 0 | 11 |
| associates | | | | |
--------------------------------------------------------------------------------
| Interest income | 2 328 | 3 551 | 10 858 | 27 791 |
--------------------------------------------------------------------------------
| Interest expense | -5 740 | -318 | -10 601 | -604 |
--------------------------------------------------------------------------------
| Foreign exchange gains and | -298 472 | -22 025 | -262 996 | -34 289 |
| losses | | | | |
--------------------------------------------------------------------------------
| Net financing costs | -301 884 | -18 781 | -262 739 | -7 091 |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Profit from ordinary | -568 957 | 114 961 | -446 054 | 424 402 |
| operations | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Income tax expense | | | | |
--------------------------------------------------------------------------------
| NET PROFIT FOR THE PERIOD | -556 065 | 97 379 | -452 647 | 380 650 |
--------------------------------------------------------------------------------
| Attributable to minority | -9 | 6 707 | 4 525 | 14 356 |
| interest | | | | |
--------------------------------------------------------------------------------
| Attributable to equity | -556 056 | 90 672 | -457 172 | 366 294 |
| holders of the parent | | | | |
--------------------------------------------------------------------------------
| | | | | |
--------------------------------------------------------------------------------
| Basic earnings per share | -3,68 | 0,60 | -3,03 | 2,43 |
| (EEK) | | | | |
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| Diluted earnings per share | -3,68 | 0,60 | -3,03 | 2,43 |
| (EEK) | | | | |
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| | | | | |
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| | | | | |
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| INCOME STATEMENT | | | | |
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| (In thousands of euro) | Q4 2008 | Q4 2007 | 2008 | 2007 |
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| Revenue | | | | |
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| Sales revenue | 46 167 | 51 277 | 178 190 | 158 967 |
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| Other income | 0 | 1 508 | 816 | 1 925 |
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| Total revenue | 46 167 | 52 785 | 179 006 | 160 893 |
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| | | | | |
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| Expenses | | | | |
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| Cost of materials, goods | -1 040 | -1 248 | -4 198 | -3 853 |
| and services used | | | | |
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| Other operating expenses | -27 961 | -23 658 | -92 553 | -70 496 |
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| Labour costs | -13 915 | -13 342 | -54 513 | -41 665 |
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| Depreciation and | -20 036 | -5 278 | -37 367 | -16 435 |
| amortisation | | | | |
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| Other expenses | -284 | -710 | -2 092 | -867 |
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| Total expenses | -63 236 | -44 237 | -190 722 | -133 315 |
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| | | | | |
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| Operating profit | -17 069 | 8 548 | -11 716 | 27 577 |
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| | | | | |
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| Financial income and | | | | |
| expenses | | | | |
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| Gain on investments in | 0 | 1 | 0 | 1 |
| associates | | | | |
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| Interest income | 149 | 227 | 694 | 1 776 |
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| Interest expense | -367 | -20 | -678 | -39 |
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| Foreign exchange gains and | -19 076 | -1 408 | -16 809 | -2 191 |
| losses | | | | |
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| Net financing costs | -19 294 | -1 200 | -16 792 | -453 |
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| | | | | |
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| Profit from ordinary | -36 363 | 7 347 | -28 508 | 27 124 |
| operations | | | | |
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| | | | | |
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| Income tax expense | 824 | -1 124 | -421 | -2 796 |
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| NET PROFIT FOR THE PERIOD | -35 539 | 6 224 | -28 929 | 24 328 |
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| Attributable to minority | -1 | 429 | 289 | 918 |
| interest | | | | |
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| Attributable to equity | -35 538 | 5 795 | -29 219 | 23 410 |
| holders of the parent | | | | |
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| | | | | |
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| Basic earnings per share | -0,24 | 0,04 | -0,19 | 0,16 |
| (€) | | | | |
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| Diluted earnings per share | -0,24 | 0,04 | -0,19 | 0,16 |
| (€) | | | | |
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Additional information:
Andri Avila
CEO
Olympic Entertainment Group
Tel + 372 667 1250
E-mail: andri.avila@oc.eu
www.olympic-casino.com