Key performance indicators of the Group
(in millions of euros)
Q1 2012 | Q1 2011 | |
Revenue | 32.2 | 31.1 |
EBITDA | 8.7 | 6.3 |
Operating profit | 5.8 | 0.6 |
Net profit | 5.1 | 0.2 |
EBITDA margin | 27.1% | 20.1% |
Operating margin | 18.0% | 2.0% |
Net margin | 15.9% | 0.6% |
ROE | 6.4% | 0.2% |
ROA | 4.9% | 0.2% |
Current ratio | 2.2 | 2.9 |
Number of casinos at year-end | 61 | 65 |
Casino floor area (m²) at year-end | 23,418 | 24,658 |
Number of slot machines at the period end | 2,446 | 2,494 |
Number of gaming tables at the period end | 183 | 184 |
Underlying formulas:
- EBITDA = earnings before financial expenses, taxes, depreciation and amortisation and impairment losses
- Operating profit = profit before financial expenses and taxes
- Net profit = net profit for the period less non-controlling interests
- EBITDA margin = EBITDA / revenue
- Operating margin = operating profit / revenue
- Net margin = net profit / revenue
- ROE = net profit / average total equity attributable to the shareholders of the parent company
- ROA = net profit / average total assets
- Current ratio = current assets / current liabilities
Key developments of the Group in Q1 2012:
- The Group’s consolidated net profit totalled EUR 5.1 million. In Q1 2011, the Group earned a net profit of EUR 0.2 million.
- The efficiency of the Group’s business operations improved. In Q1 2012, the Group’s income from gaming transactions and revenues totalled EUR 31.7 million, i.e. 8.8% more than compared to Q1 2011. The number of casinos in operation declined by 4, i.e. 6.2% year-over-year.
- At the annual general meeting of the shareholders held on 19 April 2012 it was decided to reduce the share capital of the Company altogether by EUR 21,186,130.70 from EUR 81,717,932.70 to EUR 60,531,802. The share capital is reduced by reducing the calculated value of the shares from EUR 0.54 to EUR 0.40, whereas the number of the shares remains the same (i.e. 151,329,505). The reduction of share capital in the amount of EUR 15,132,950.50 shall be paid to the shareholders within the term set forth by the law. Upon reducing the share capital, EUR 6,053,180.20 shall not be paid to the shareholders but shall be used to cover the accumulated losses.
In Q1 2012, the Group’s consolidated sales revenue totalled EUR 31.7 million and the revenue totalled EUR 32.2 million, which is 3.3% more than the total revenue of EUR 31.1 million earned in Q1 2011. The Group’s EBITDA increased from EUR 6.3 million in Q1 2011 to EUR 8.7 million in Q1 2012. In Q1 2012, the operating profit totalled EUR 5.8 million, in Q1 2011 the operating profit totalled EUR 0.6 million.
In Q1 2012, gaming operations accounted for 92.1% and other revenue 7.9% of the Group’s consolidated revenue, the respective percentages for the Q1 2011 were 87.3% and 12.7%.
Total external income from gaming transactions and revenue (EUR thousands):
Q1 2012 | Change | Percentage of total | Q1 2011 | Percentage of total | |
Estonia | 7,614 | 17.3% | 24.0% | 6,490 | 22.3% |
Latvia | 7,976 | 24.4% | 25.2% | 6,411 | 22.0% |
Lithuania | 4,894 | 10.8% | 15.5% | 4,415 | 15.2% |
Poland | 6,238 | -17.1% | 19.7% | 7,523 | 25.9% |
Slovakia | 4,255 | 75.0% | 13.4% | 2,432 | 8.4% |
Belarus | 690 | -21.4% | 2.2% | 878 | 3.0% |
Romania* | 0 | -100.0% | 0.0% | 944 | 3.2% |
Total | 31,667 | 8.8% | 100.0% | 29,093 | 100.0% |
* Romanian income from gaming transactions and revenue were recognised until transfer of control to the new owner at 30 June 2011.
At the end of Q1 2012, the Group had 61 casinos, with the total floor area of 23,418 m². At the end of Q1 2011, the number of the Group’s casinos was 65 and total floor area was 24,658 m².
Number of casinos by segment
31.03.2012 | 31.03.2011 | |
Estonia | 17 | 17 |
Latvia | 21 | 21 |
Lithuania | 10 | 11 |
Poland | 4 | 6 |
Slovakia | 4 | 3 |
Belarus | 5 | 5 |
Romania | 0 | 2 |
Total | 61 | 65 |
In Q1 2012, the Group’s consolidated operating expenses decreased by 13.6% or EUR 4.1 million as compared to the respective expenses in Q1 2011. Depreciation, amortisation and impairment losses decreased the most compared to Q1 2011 by EUR 2.7 million. Staff costs with social security taxes increased the most as compared to Q1 2011 by EUR 0.3 million, rental expenses by EUR 0.2 million and licence fees and gaming taxes by EUR 0.2 million.
Staff costs with social security taxes made up the largest share of the Group’s operating expenses, i.e. EUR 8.0 million, followed by gaming tax expenses of EUR 6.7 million, depreciation, amortisation and impairment losses of EUR 2.9 million, rental expenses of EUR 2.9 million and marketing expenses of EUR 2.2 million.
In Q1 2012, the consolidated net profit attributable to equity holders of the parent company totalled EUR 5.1 million. In Q1 2011, the consolidated net profit attributable to equity holders of the parent company totalled EUR 0.2 million.
Overview by markets
Estonian segment
In Q1 2012, the external revenue of the Estonian segment totalled EUR 7.9 million, of which the income from gaming transactions totalled EUR 6.9 million and other revenue and income totalled EUR 1.0 million. The external revenue of the Estonian segment decreased by 6.9% compared to Q1 2011 (whereas the external sales revenue increased by 17.3%). The market share of Olympic Casino Eesti AS in the Estonian gaming market was 54% at the end of Q1 2012 and 54% at the end of Q1 2011. In Q1 2012, the total Estonian gaming market increased by 16.6% as compared to Q1 2011.
In Q1 2012, the EBITDA of the Estonian segment totalled EUR 1.8 million and the operating profit totalled EUR 1.1 million. In Q1 2011, the EBITDA of the Estonian segment totalled EUR 2.9 million and the operating profit totalled EUR 1.8 million.
At the end of Q1 2012, there were 17 Olympic casinos with 699 slot machines and 21 gaming tables in operation in Estonia.
Latvian segment
In Q1 2012, the external revenue of the Latvian segment totalled EUR 8.1 million, of which the income from gaming transactions totalled EUR 7.3 million and other revenue and income totalled EUR 0.8 million. The external revenue of the Latvian segment increased by 26.1% compared to Q1 2011. The market share of Olympic Casino Latvia SIA in the Latvian gaming market was 21% at the end of Q1 2012 and 20% at the end of Q1 2011. In Q1 2012, the total Latvian gaming market increased by 23.8% as compared to Q1 2011.
In Q1 2012, the EBITDA of the Latvian segment totalled EUR 3.6 million and the operating profit totalled EUR 2.9 million. In Q1 2011, the EBITDA of the Latvian segment totalled EUR 2.4 million and the operating profit totalled EUR 1.4 million.
At the end of Q1 2012, there were 21 Olympic casinos with 646 slot machines and 25 gaming tables in operation in Latvia.
Lithuanian segment
In Q1 2012, the external revenue of the Lithuanian segment totalled EUR 4.9 million, of which the income from gaming transactions totalled EUR 4.6 million and other revenue and income totalled EUR 0.3 million. The external revenue of the Lithuanian segment increased by 10.2% compared to Q1 2011. The market share of Olympic Casino Group Baltija UAB in the Lithuanian gaming market was 68% at the end of Q1 2012 and 73% at the end of Q1 2011. The total Lithuanian gaming market increased by 13.6% as compared to Q1 2011.
In Q1 2012, the EBITDA of the Lithuanian segment totalled EUR 1.1 million and the operating profit totalled EUR 0.7 million. In Q1 2011, the EBITDA of the Lithuanian segment totalled EUR 0.9 million and the operating profit totalled EUR 0.4 million.
At the end of Q1 2012, there were 10 Olympic casinos with 350 slot machines and 52 gaming tables in operation in Lithuania.
Polish segment
In Q1 2012, the external revenue of the Polish segment totalled EUR 6.3 million, of which the income from gaming transactions totalled EUR 6.1 million and other revenue and income totalled EUR 0.2 million. The external revenue of the Polish segment decreased by 16.2% compared to Q1 2011.
In Q1 2012, the EBITDA of the Polish segment totalled EUR 0.9 million and the operating profit totalled EUR 0.2 million. In Q1 2011, the EBITDA of the Polish segment totalled EUR 1.1 million and the operating loss totalled EUR 0.1 million.
At the end of Q1 2012, there were 4 Olympic casinos with 307 slot machines and 41 gaming tables in operation in Poland.
Slovak segment
In Q1 2012, the external revenue of the Slovak segment totalled EUR 4.3 million, of which the income from gaming transactions totalled EUR 3.9 million and other revenue and income totalled EUR 0.4 million. The external revenue of the Slovak segment increased by 75.0% compared to Q1 2011.
In Q1 2012, the EBITDA of the Slovak segment totalled EUR 1.1 million and the operating profit totalled EUR 0.8 million. In Q1 2011, the EBITDA of the Slovak segment totalled EUR 0.4 million and the operating profit totalled EUR 0.1 million.
At the end of Q1 2012, there were 4 Olympic casinos with 216 slot machines and 44 gaming tables in operation in Slovakia.
Belarusian segment
In this interim financial statements, the Belarusian segment is regarded as a hyperinflationary economy that is subject to the accounting policies of IAS 29.
In Q1 2012, the external revenue of the Belarusian segment totalled EUR 0.7 million, of which the income from gaming transactions totalled EUR 0.6 million and other revenue and income totalled EUR 0.1 million. The external revenue of the Belarus segment decreased by 19.5% compared to Q1 2011.
In Q1 2012, the EBITDA of the Belarusian segment totalled EUR 0.2 million and the operating profit totalled EUR 0.1 million. In Q1 2011, the EBITDA of the Belarusian segment totalled EUR 0.3 million and the operating profit totalled EUR 0.1 million.
At the end of Q1 2012, there were 5 Olympic casinos with 228 slot machines in operation in Belarus.
Romanian segment
Olympic Entertainment Group AS signed share purchase agreement on 30 April 2011 with an Israeli entrepreneur for selling all the shares in Romanian subsidiaries Olympic Casino Bucharest S.R.L, Muntenia Food and Beverage S.R.L. and Olympic Exchange S.R.L. As of 30 June 2011 shares of Romanian subsidiaries have been registered to the buyer.
Financial position
At 31 March 2012, the consolidated balance sheet total of the Group was EUR 107.0 million (31 December 2011: EUR 101.0 million). The balance sheet total increased by 6.0% in Q1 2012.
Current assets totalled EUR 53.6 million or 50.1% of total assets, and non-current assets totalled EUR 53.4 million or 49.9% of total assets. At the balance sheet date, the liabilities totalled EUR 19.0 million and the equity totalled EUR 87.9 million. The largest liability items included borrowings of EUR 5.5 million, tax liabilities of EUR 4.9 million and payables to employees of EUR 3.2 million.
Investments
In Q1 2012, the Group’s expenditures on property, plant and equipment totalled EUR 1.4 million, of which EUR 1.0 million was spent on construction and reconstruction of casinos and EUR 0.4 million on new gaming equipment.
In Q1 2011, expenditures on property, plant and equipment totalled EUR 0.4 million.
Cash flows
In Q1 2012, the Group’s cash flows generated from operating activities totalled EUR 8.3 million. Cash flows from investing activities totalled EUR 1.6 million and cash flows used in financing activities totalled EUR 0.8 million. Net cash flows totalled EUR 9.2 million.
In Q1 2011, the Group’s cash flows generated from operating activities totalled EUR 7.3 million. Cash flows used in investing activities totalled EUR 0.5 million and cash flows used in financing activities totalled EUR 0.8 million. Net cash flows totalled EUR 6.0 million.
Staff
At 31 March 2012, the Group employed 2,296 people (31 December 2011: 2,336): 520 in Estonia, 470 in Latvia, 603 in Lithuania, 375 in Poland, 222 in Slovakia and 101 in Belarus.
In Q1 2012, employee wages and salaries including social security taxes totalled EUR 7.9 million (Q1 2011: EUR 7.8 million). In Q1 2012, the members of the Management Board and Supervisory Board of all Group entities were paid remuneration and benefits including social security taxes in the amount of EUR 0.17 million (Q1 2011: EUR 0.15 million) and EUR 0.04 million (Q1 2011: EUR 0.04 million), respectively.
Consolidated statement of financial position
31.03.2012 | 31.12.2011 | |
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 42,590 | 33,413 |
Financial investments | 7,246 | 9,508 |
Receivables and prepayments | 2,524 | 2,606 |
Prepaid income tax | 286 | 397 |
Inventories | 925 | 909 |
Total current assets | 53,571 | 46,833 |
Non-current assets | ||
Deferred tax assets | 1,162 | 1,111 |
Financial investments | 2,941 | 2,937 |
Other long-term receivables | 723 | 712 |
Investment property | 1,795 | 1,795 |
Property, plant and equipment | 18,469 | 19,754 |
Intangible assets | 28,296 | 27,822 |
Total non-current assets | 53,386 | 54,131 |
TOTAL ASSETS | 106,957 | 100,964 |
LIABILITIES AND EQUITY | ||
Current liabilities | ||
Borrowings | 3,112 | 3,113 |
Trade and other payables | 10,219 | 9,870 |
Income tax payable | 1,572 | 1,215 |
Provisions | 1,716 | 1,881 |
Total current liabilities | 16,619 | 16,079 |
Non-current liabilities | ||
Deferred tax liability | 40 | 90 |
Borrowings | 2,360 | 3,136 |
Total non-current liabilities | 2,400 | 3,226 |
TOTAL LIABILITIES | 19,019 | 19,305 |
EQUITY | ||
Share capital | 81,718 | 81,718 |
Share premium | 14,535 | 14,535 |
Statutory reserve capital | 2,470 | 2,470 |
Other reserves | 80 | 53 |
Translation reserves | -908 | -1,776 |
Accumulated losses | -14,808 | -19,930 |
Total equity attributable to equity holders of the parent | 83,087 | 77,070 |
Non-controlling interest | 4,851 | 4,589 |
TOTAL EQUITY | 87,938 | 81,659 |
TOTAL LIABILITIES AND EQUITY | 106,957 | 100,964 |
Consolidated statement of comprehensive income
Q1 2012 | Q1 2011 | |
Continuing operations | ||
Income from gaming transactions | 29,596 | 26,349 |
Revenue | 2,071 | 1,800 |
Other income | 484 | 2,021 |
Total revenue and income | 32,151 | 30,170 |
Cost of materials, goods and services | -664 | -635 |
Other operating expenses | -14,644 | -14,178 |
Staff costs | -8,035 | -7,156 |
Depreciation, amortisation and impairment | -2,901 | -4,186 |
Other expenses | -110 | -326 |
Total operating expenses | -26,354 | -26,481 |
Operating profit | 5,797 | 3,689 |
Interest income | 74 | 75 |
Interest expense | -55 | -126 |
Foreign exchange gains (losses) | -14 | 16 |
Other finance income and costs | 285 | -2 |
Total finance income and costs | 290 | -37 |
Profit from operating activities | 6,087 | 3,652 |
Income tax expense | -703 | -353 |
Net profit for the period from continuing operations | 5,384 | 3,299 |
Net loss for the period from discontinued operations | 0 | -3,096 |
Net profit for the period | 5,384 | 203 |
Attributable to equity holders of the parent company | 5,122 | 183 |
Attributable to non-controlling interest | 262 | 20 |
Other comprehensive income | ||
Currency translation differences | ||
From continuing operations | 868 | -329 |
From discontinuing operations | 0 | 103 |
Total comprehensive profit (-loss) for the period | 6,252 | -23 |
Attributable to equity holders of the parent company | 5,990 | -43 |
Attributable to non-controlling interest | 262 | 20 |
Basic earnings per share* | 3.4 | 0.1 |
From continuing operations | 3.4 | 2.2 |
From discontinuing operations | 0.0 | -2.1 |
Diluted earnings per share* | 3.4 | 0.1 |
From continuing operations | 3.4 | 2.2 |
From discontinuing operations | 0.0 | -2.1 |
* euro cents
For further information, please contact:
Madis Jääger
CEO
Olympic Entertainment Group AS
Tel + 372 667 1250
E-mail madis.jaager@oc.eu
http://www.olympic-casino.com