Key performance indicators of the Group
(in millions of euros)
9 m 2012 | 9 m 2011 | 9 m 2010 | |
Revenue | 98.0 | 93.2 | 81.8 |
EBITDA | 27.7 | 24.0 | 15.5 |
Operating profit | 19.7 | 11.5 | 2.1 |
Net profit | 17.7 | 10.0 | 1.1 |
EBITDA margin | 28.3% | 25.7% | 19.0% |
Operating margin | 20.1% | 12.3% | 2.6% |
Net margin | 18.1% | 10.8% | 1.3% |
ROE | 22.4% | 13.0% | 1.5% |
ROA | 16.2% | 9.4% | 1.1% |
Current ratio | 2.1 | 2.2 | 2.5 |
Number of casinos at year-end | 62 | 63 | 64 |
Casino floor area (m²) at year-end | 23,354 | 23,149 | 24,988 |
Number of slot machines at the period end | 2,479 | 2,447 | 2,445 |
Number of gaming tables at the period end | 182 | 173 | 170 |
Key developments of the Group during the 9-month period of 2012:
- The Group’s consolidated net profit totalled EUR 17.7 million. During the 9-month period of 2011, the Group earned a net profit of EUR 10.0 million.
- The efficiency of the Group’s business operations improved. During the 9-month period of 2012, the Group’s income from gaming transactions and revenues totalled EUR 97.5 million, i.e. 9.8% more than compared to the 9‑month period of 2011. The number of casinos in operation declined by 1 year-over-year.
- At 27 July 2012, the reduction of share capital of Olympic Entertainment Group AS on the basis adopted by resolution of the General Meeting of Shareholders held at 19 April 2012 was entered in the Commercial Register. The Company’s registered share capital was EUR 81,717,932.70 and the new size of share capital is EUR 60,531,802. The share capital is divided into 151,329,505 ordinary shares with the book value of EUR 0.40 each.
- Olympic Entertainment Group AS and the Italian company GHolding agreed on 2 August 2012 to jointly set up and operate medium-sized VLT slot casinos in Italy. Both parties own half of the operating company The Box S.r.l.
During 9-month period of 2012, the Group’s consolidated sales revenue totalled EUR 97.5 million and the revenue totalled EUR 98.0 million, which is 5.1% more than the total revenue of EUR 93.2 million earned during the 9-month period of 2011. The Group’s EBITDA increased from EUR 24.0 million during the 9-month period of 2011 to EUR 27.7 million this year. During the 9-month period of 2012 the operating profit totalled EUR 19.7 million, last year the operating profit totalled EUR 11.5 million.
During the 9-month period of 2012, gaming operations accounted for 92.5% and other revenue 7.5% of the Group’s consolidated revenue, the respective percentages for the 9-month period of 2011 were 88.5% and 11.5%.
Total external income from gaming transactions and revenue (EUR thousands):
Q3 2012 | Change | Percentage of total | Q3 2011 | Percentage of total | |
Estonia | 9,340 | 13.6% | 27.6% | 8,225 | 26.6% |
Latvia | 8,902 | 13.7% | 26.3% | 7,828 | 25.3% |
Lithuania | 5,023 | -2.6% | 14.8% | 5,157 | 16.7% |
Poland | 6,437 | 3.9% | 19.0% | 6,197 | 20.0% |
Slovakia | 3,243 | 18.5% | 9.6% | 2,737 | 8.8% |
Belarus | 906 | 13.4% | 2.7% | 799 | 2.6% |
Romania* | 0 | 0.0% | 0.0% | 0 | 0.0% |
Total | 33,851 | 9.4% | 100.0% | 30,943 | 100.0% |
9m 2012 | Change | Percentage of total | 9m 2011 | Percentage of total | |
Estonia | 25,134 | 14.6% | 25.8% | 21,933 | 24.7% |
Latvia | 24,645 | 16.8% | 25.3% | 21,104 | 23.8% |
Lithuania | 14,383 | 3.4% | 14.8% | 13,914 | 15.7% |
Poland | 19,812 | -1.8% | 20.3% | 20,178 | 22.7% |
Slovakia | 11,002 | 33.6% | 11.3% | 8,236 | 9.3% |
Belarus | 2,481 | 0.9% | 2.5% | 2,459 | 2.8% |
Romania* | 0 | -100.0% | 0.0% | 954 | 1.1% |
Total | 97,457 | 9.8% | 100.0% | 88,778 | 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 Q3 2012, the Group had 62 casinos, with the total floor area of 23,354 m². At the end of Q3 2011, the number of the Group’s casinos was 63 and total floor area was 23,149 m².
Number of casinos by segment
30.09.2012 | 30.09.2011 | |
Estonia | 18 | 17 |
Latvia | 21 | 21 |
Lithuania | 10 | 11 |
Poland | 4 | 6 |
Slovakia | 4 | 3 |
Belarus | 5 | 5 |
Total | 62 | 63 |
During the 9-month period of 2012, the Group’s consolidated operating expenses decreased by 4.3% or EUR 3.5 million as compared to the expenses during 9-month period in 2011. Depreciation, amortisation and impairment losses decreased the most compared to the 9-month period in 2011 by EUR 4.5 million. Staff costs with social security taxes increased the most as compared to 9-month period of 2011 by EUR 1.5 million and licence fees and gaming taxes by EUR 1.0 million.
Staff costs with social security taxes made up the largest share of the Group’s operating expenses, i.e. EUR 24.0 million, followed by gaming tax expenses of EUR 20.1 million, depreciation, amortisation and impairment losses of EUR 8.0 million, rental expenses of EUR 7.1 million and marketing expenses of EUR 6.6 million.
During the 9-month period in 2012, the consolidated net profit attributable to equity holders of the parent company totalled EUR 17.7 million. During 9-month period in 2011, the consolidated net profit attributable to equity holders of the parent company totalled EUR 10.0 million.
Overview by markets
Estonian segment
During the 9-month period in 2012, the external revenue of the Estonian segment totalled EUR 25.4 million, of which the income from gaming transactions totalled EUR 22.7 million and other revenue and income totalled EUR 2.7 million. The external revenue of the Estonian segment increased by 6.1% compared to the 9-month period in 2011. The market share of Olympic Casino Eesti AS in the Estonian gaming market was 57% based on Q3 2012 and 55% based on Q3 2011. During the 9-month period in 2012, the total Estonian gaming market increased by 7% as compared to the 9-month period in 2011.
During the 9-month period in 2012, the EBITDA of the Estonian segment totalled EUR 6.6 million and the operating profit totalled EUR 4.5 million. During the 9-month period in 2011, the EBITDA of the Estonian segment totalled EUR 6.1 million and the operating profit totalled EUR 3.2 million.
At the end of Q3 2012, there were 18 Olympic casinos with 739 slot machines and 20 gaming tables operating in Estonia.
Latvian segment
During the 9-month period in 2012, the external revenue of the Latvian segment totalled EUR 24.8 million, of which the income from gaming transactions totalled EUR 22.6 million and other revenue and income totalled EUR 2.2 million. The external revenue of the Latvian segment increased by 17.3% compared to the 9-month period in 2011. The market share of Olympic Casino Latvia SIA in the Latvian gaming market was 20% based on Q3 2012 and 20% based on Q3 2011. During the 9-month period in 2012, the total Latvian gaming market increased by 16% as compared to the 9-month period in 2011.
During the 9-month period in 2012, the EBITDA of the Latvian segment totalled EUR 11.3 million and the operating profit totalled EUR 9.5 million. During the 9-month period in 2011, the EBITDA of the Latvian segment totalled EUR 8.6 million and the operating profit totalled EUR 6.1 million.
At the end of Q3 2012, there were 21 Olympic casinos with 647 slot machines and 25 gaming tables operating in Latvia.
Lithuanian segment
During the 9-month period in 2012, the external revenue of the Lithuanian segment totalled EUR 14.4 million, of which the income from gaming transactions totalled EUR 13.5 million and other revenue and income totalled EUR 0.9 million. The external revenue of the Lithuanian segment increased by 3.2% compared to the 9-month period in 2011. The market share of Olympic Casino Group Baltija UAB in the Lithuanian gaming market was 66% based on Q3 2012 and 68% based on Q3 2011. During the 9-month period in 2012, the total Lithuanian gaming market increased by 7% as compared to the 9‑month period in 2011.
During the 9-month period in 2012, the EBITDA of the Lithuanian segment totalled EUR 3.5 million and the operating profit totalled EUR 2.3 million. During the 9-month period in 2011, the EBITDA of the Lithuanian segment totalled EUR 3.3 million and the operating profit totalled EUR 1.8 million.
At the end of Q3 2012, there were 10 Olympic casinos with 356 slot machines and 52 gaming tables operating in Lithuania.
Polish segment
During the 9-month period in 2012, the external revenue of the Polish segment totalled EUR 19.9 million, of which the income from gaming transactions totalled EUR 19.5 million and other revenue and income totalled EUR 0.4 million. The external revenue of the Polish segment decreased by 11.7% compared to the 9-month period in 2011.
During the 9-month period in 2012, the EBITDA of the Polish segment totalled EUR 3.4 million and the operating profit totalled EUR 1.6 million. During the 9-month period in 2011, the EBITDA of the Polish segment totalled EUR 4.7 million and the operating profit totalled EUR 1.9 million.
At the end of Q3 2012, there were 4 Olympic casinos with 307 slot machines and 41 gaming tables operating in Poland.
Slovak segment
During the 9-month period in 2012, the external revenue of the Slovak segment totalled EUR 11.0 million, of which the income from gaming transactions totalled EUR 10.0 million and other revenue and income totalled EUR 1.0 million. The external revenue of the Slovak segment increased by 33.6% compared to the 9-month period in 2011.
During the 9-month period in 2012, the EBITDA of the Slovak segment totalled EUR 2.0 million and the operating profit totalled EUR 1.1 million. During the 9-month period in 2011, the EBITDA of the Slovak segment totalled EUR 1.6 million and the operating profit totalled EUR 0.9 million.
At the end of Q3 2012, there were 4 Olympic casinos with 202 slot machines and 44 gaming tables operating in Slovakia.
Belarus 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.
During the 9-month period in 2012, the external revenue of the Belarusian segment totalled EUR 2.5 million, of which the income from gaming transactions totalled EUR 2.3 million and other revenue and income totalled EUR 0.2 million. The external revenue of the Belarusian segment increased by 2.4% compared to the 9-month period in 2011.
During the 9-month period in 2012, the EBITDA of the Belarusian segment totalled EUR 0.9 million and the operating profit totalled EUR 0.8 million. During the 9-month period in 2011, the EBITDA of the Belarusian segment totalled EUR 0.6 million and the operating profit totalled EUR 0.1 million.
At the end of Q3 2012, there were 5 Olympic casinos with 228 slot machines operating 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 30 September 2012, the consolidated balance sheet total of the Group was EUR 118.1 million (31 December 2011: EUR 101.0 million). The balance sheet total increased by 17.0% during the 9-month period in 2012.
Current assets totalled EUR 65.3 million or 55.3% of total assets, and non-current assets totalled EUR 52.8 million or 44.7% of total assets. At the balance sheet date, the liabilities totalled EUR 32.0 million and the equity totalled EUR 86.1 million. The largest liability items included payables to the shareholders from the reduction of share capital in the amount of EUR 15.1 million, borrowings of EUR 3.9 million, tax liabilities of EUR 4.3 million and payables to employees of EUR 2.5 million.
Investments
During the 9-month period in 2012, the Group’s expenditures on property, plant and equipment totalled EUR 5.7 million, of which EUR 3.1 million was spent on construction and reconstruction of casinos and EUR 2.6 million on new gaming equipment.
During the 9-month period in 2011, expenditures on property, plant and equipment totalled EUR 2.8 million.
Cash flows
During the 9-month period in 2012, the Group’s cash flows generated from operating activities totalled EUR 23.7 million. Cash flows used in investing activities totalled EUR 7.1 million and cash flows used in financing activities totalled EUR 2.3 million. Net cash flows totalled EUR 14.3 million.
During the 9-month period in 2011, the Group’s cash flows generated from operating activities totalled EUR 23.4 million. Cash flows used in investing activities totalled EUR 9.8 million and cash flows used in financing activities totalled EUR 8.3 million. Net cash flows totalled EUR 5.3 million.
Staff
At 30 September 2012, the Group employed 2,310 people (31 December 2011: 2,336): 523 in Estonia, 472 in Latvia, 613 in Lithuania, 375 in Poland, 226 in Slovakia and 101 in Belarus.
During the 9-month period in 2012, employee wages and salaries including social security taxes totalled EUR 24.0 million (9m 2011: EUR 22.4 million). During the 9-month period in 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 641 thousand (9m 2011: EUR 516 thousand) and EUR 117 thousand (9m 2011: EUR 117 thousand), respectively.
Consolidated statement of financial position
30.09.2012 | 31.12.2011 | |
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 47,702 | 33,413 |
Financial investments | 13,518 | 9,508 |
Receivables and prepayments | 2,882 | 2,606 |
Prepaid income tax | 267 | 397 |
Inventories | 963 | 909 |
Total current assets | 65,332 | 46,833 |
Non-current assets | ||
Deferred tax assets | 1,161 | 1,111 |
Financial investments | 2,948 | 2,937 |
Other long-term receivables | 654 | 712 |
Investment property | 1,804 | 1,795 |
Property, plant and equipment | 17,898 | 19,754 |
Intangible assets | 28,326 | 27,822 |
Total non-current assets | 52,791 | 54,131 |
TOTAL ASSETS | 118,123 | 100,964 |
LIABILITIES AND EQUITY | ||
Current liabilities | ||
Borrowings | 3,110 | 3,113 |
Trade and other payables | 25,507 | 9,870 |
Income tax payable | 881 | 1,215 |
Provisions | 1,536 | 1,881 |
Total current liabilities | 31,034 | 16,079 |
Non-current liabilities | ||
Deferred tax liability | 116 | 90 |
Borrowings | 806 | 3,136 |
Total non-current liabilities | 922 | 3,226 |
TOTAL LIABILITIES | 31,956 | 19,305 |
EQUITY | ||
Share capital | 60,532 | 81,718 |
Share premium | 0 | 14,535 |
Statutory reserve capital | 0 | 2,470 |
Other reserves | 117 | 53 |
Translation reserves | -659 | -1,776 |
Retained earnings / accumulated losses | 20,824 | -19,930 |
Total equity attributable to equity holders of the parent | 80,814 | 77,070 |
Non-controlling interest | 5,353 | 4,589 |
TOTAL EQUITY | 86,167 | 81,659 |
TOTAL LIABILITIES AND EQUITY | 118,123 | 100,964 |
Consolidated statement of comprehensive income
Q3 2012 | Q3 2011 | 9m 2012 | 9m 2011 | |
Continuing operations | ||||
Income from gaming transactions | 31,409 | 28,661 | 90,629 | 81,711 |
Revenue | 2,442 | 2,282 | 6,828 | 6,113 |
Other income | 35 | 432 | 558 | 4,443 |
Total revenue and income | 33,886 | 31,375 | 98,015 | 92,267 |
Cost of materials, goods and services | -763 | -750 | -2,118 | -2,057 |
Other operating expenses | -14,733 | -13,627 | -44,030 | -41,893 |
Staff costs | -7,923 | -7,345 | -23,955 | -21,717 |
Depreciation, amortisation and impairment | -2,392 | -3,240 | -7,959 | -11,031 |
Other expenses | -58 | -678 | -216 | -1,664 |
Total operating expenses | -25,869 | -25,640 | -78,278 | -78,362 |
Operating profit | 8,017 | 5,735 | 19,737 | 13,905 |
Interest income | 63 | 127 | 216 | 280 |
Interest expense | -42 | -108 | -144 | -351 |
Foreign exchange gains (losses) | 8 | 47 | -37 | 160 |
Other finance income and costs | 889 | 377 | 1,412 | 372 |
Total finance income and costs | 918 | 443 | 1,447 | 461 |
Profit from operating activities | 8,935 | 6,178 | 21,184 | 14,366 |
Income tax expense | -1,274 | -625 | -2,714 | -1,582 |
Net profit for the period from continuing operations | 7,661 | 5,553 | 18,470 | 12,784 |
Net profit (loss) for the period from discontinued operations | 0 | 0 | 0 | -2,462 |
Net profit for the period | 7,661 | 5,553 | 18,470 | 10,322 |
Attributable to equity holders of the parent company | 7,337 | 5,606 | 17,696 | 10,034 |
Attributable to non-controlling interest | 324 | -53 | 774 | 288 |
Other comprehensive income | ||||
Currency translation differences | ||||
Continuing operations | 420 | -1,581 | 1,117 | -2,299 |
Discontinued operations | 0 | 0 | 0 | -187 |
Total comprehensive profit for the period | 8,081 | 3,972 | 19,587 | 7,836 |
Attributable to equity holders of the parent company | 7,757 | 4,025 | 18,813 | 7,548 |
Attributable to non-controlling interest | 324 | -53 | 774 | 288 |
Basic earnings per share* | 4.8 | 3.7 | 11.7 | 6.6 |
From continuing operations | 4.8 | 3.7 | 11.7 | 8.2 |
From discontinuing operations | 0.0 | 0.0 | 0.0 | -1.6 |
Diluted earnings per share* | 4.8 | 3.7 | 11.7 | 6.6 |
From continuing operations | 4.8 | 3.7 | 11.7 | 8.2 |
From discontinuing operations | 0.0 | 0.0 | 0.0 | -1.6 |
* euro cents
Madis Jääger
CEO
Olympic Entertainment Group AS
Tel + 372 667 1250
E-mail madis.jaager@oc.eu
http://www.olympic-casino.com