OEG: consolidated unaudited results for Q1 2014

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| Source: Olympic Entertainment Group
multilang-release

Key performance indicators of the Group

    Q1 2014 Q1 2013 Q1 2012
Revenues m€ 34.9 33.3 32.2
Gaming tax m€ 7.0 6.8 6.7
EBITDA m€ 8.0 8.2 8.7
EBIT m€ 6.1 6.1 5.8
Net profit m€ 4.9 4.6 5.1
EBITDA margin % 23.0% 24.8% 27.1%
Operating margin % 17.4% 18.4% 18.0%
Net margin % 14.0% 13.8% 15.9%
         
Assets m€ 122.3 113.2 107.0
Equity m€ 107.1 97.3 87.9
ROE % 5.0% 5.1% 6.4%
ROA % 4.2% 4.1% 4.9%
Current ratio times 3.5 3.6 2.2
         
Casinos at end of period # 82 66 61
Casino floor area at end of period m2 27,181 25,232 23,418
Employees # 2,505 2,381 2,296
         
Slot machines at end of period # 3,011 2,693 2,446
Gaming tables at end of period # 191 184 183

 

Key developments of the Group during the first quarter of 2014:

  • The Group’s consolidated sales revenues for Q1 2014 amounted to EUR 34.8 million, up 5.3% or EUR 1.7 million y‑o‑y.
  • Gaming revenues accounted for 94.0% (32.7 m€) and other revenues for 6.0% (2.1 m€) of the Group’s consolidated sales revenues for Q1 2014. A year before the revenue split was 93.4% (30.9 m€) and 6.6% (2.2 m€), respectively.
  • The Group’s consolidated EBITDA for Q1 2014 amounted to EUR 8.0 million, down 0.2% from EUR 8.2 million a year before. The Group’s consolidated operating profit decreased EUR 0.1 million (-1.0%) to EUR 6.1 million.
  • The Group’s consolidated net profit attributable to equity holders of the parent company for Q1 2014 totalled EUR 4.9 million compared to EUR 4.6 million a year ago.
  • On 23 January 2014 Olympic Entertainment Group AS acquired a 100% shareholding in Slovak VLT slot casino operator company WINWIN Slovakia S.r.o. (renamed to OlyBet Slovakia S.r.o.) and plans to open its first VLT slot casino in Slovakia within the first half of 2014.
  • The annual general meeting of the shareholders held on 25 April 2014 decided to pay dividends in the amount of 15,132,950.50 Euros. Dividends will be paid out to shareholders on 13 May 2014.

 

The Group’s consolidated sales revenue by segments:

‘000€ Q1 2014 Q1 2013 Change
Estonia 7,788 8,108 -3.9%
Latvia 10,415 8,030 29.7%
Lithuania 5,499 5,130 7.2%
Poland 6,218 6,282 -1.0%
Slovakia 3,625 3,919 -7.5%
Belarus 472 691 -31.7%
Italy 790 899 -12.1%
Total 34,807 33,059 5.3%

 

At the end of March 2014, the Group had 82 casinos with total floor area of 27,181 m² (+1,949 m²).

 

Number of casinos by segment:

  31 March 2014 31 March 2013
Estonia 18 18
Latvia 38 21
Lithuania 12 12
Poland 3 3
Slovakia 5 5
Belarus 4 5
Italy 2 2
Total 82 66

 

The Group’s consolidated operating expenses for Q1 2014 amounted to EUR 28.8 million, up 6.2% or EUR 1.7 million y-o-y. The growth was highest in personnel expenses (+1.2 m€, +14.3%), rent expenses (+0.2 m€, +5.0%) and gaming tax (+0.2 m€, +3.7%). Amortisation and depreciation cost declined the most (-0.2 m€, -7.0%). Personnel expenses (9.5 m€) and gaming tax (7.1 m€) represented the largest cost items accounting for 57.4% of total operating expenses.

 

Overview by markets

Estonia

The sales revenues of Estonian segment for Q1 2014 amounted to EUR 7.8 million (-0.3 m€, -3.5%), EBITDA to EUR 1.8 million (+0.0 m€, +0.2%) and operating profit to EUR 1.3 million (-0.1 m€, -5.7%). Gaming revenue increased 0.1% y-o-y amounting to EUR 7.5 million.

The market share of Olympic Casino Eesti AS in the Estonian land-based gaming market was 55% in Q1 2014 remaining on the same level as a year ago. All in all, total Estonian land-based gaming market decreased in Q1 2014 by 2% as compared to the same period a year ago.

At the end of March 2014, there were 18 Olympic casinos with 737 slot machines and 19 gaming tables operating in Estonia. As at 31 March 2014, the Estonian operations employed 473 people.

Latvia

The sales revenues of Latvian segment for Q1 2014 amounted to EUR 10.4 million (+2.4 m€, +29.7%), EBITDA to EUR 3.8 million (+0.4 m€, +11.6%) and operating profit to EUR 3.1 million (+0.3 m€, +11.3%). Gaming revenue increased 30.6% y-o-y amounting to EUR 9.6 million.

The market share of Latvian operations in the Latvian gaming market was approximately 23% in Q1 2014, up from 20% a year ago. Total Latvian gaming market increased by 2% as compared to the Q1 of 2013.

At the end of March 2014, there were 38 Olympic casinos with 1,040 slot machines and 18 gaming tables operating in Latvia. As at 31 March 2014, there were 660 employees in Latvia.

Lithuania

The sales revenues of Lithuanian segment for Q1 2014 amounted to EUR 5.5 million (+0.4 m€, +7.2%), EBITDA to EUR 1.1 million (-0.1 m€, -5.4%) and operating profit to EUR 0.9 million (+0.0 m€, +3.2%). Gaming revenue increased 7.0% y-o-y amounting to EUR 5.2 million.

At the end of March 2014, there were 12 Olympic casinos with 427 slot machines and 61 gaming tables operating in Lithuania. As at 31 March 2014, the Lithuanian operations employed 671 people.

Poland

The sales revenues of Polish segment for Q1 2014 amounted to EUR 6.2 million (-0.1 m€, -1.0%), EBITDA to EUR 1.0 million (-0.1 m€, -10.3%) and operating profit to EUR 0.8 million (+0.1 m€, +6.4%). Gaming revenue decreased 1.2% y-o-y amounting to EUR 6.1 million.

At the end of March 2014, there were 3 Olympic casinos with 284 slot machines and 40 gaming tables operating in Poland. As at 31 March 2014, the Polish operations employed 336 people.

Slovakia

The sales revenues of Slovak segment for Q1 2014 amounted to EUR 3.6 million (-0.3 m€, -7.5%), EBITDA to EUR 0.2 million (-0.3 m€, -58.9%) and operating loss to EUR 0.1 million (-0.3 m€, -118.4%). Gaming revenue decreased 10.3% y-o-y amounting to EUR 3.2 million.

At the end of March 2014, there were 5 Olympic casinos with 224 slot machines and 53 gaming tables operating in Slovakia. As at 31 March 2014, The Slovak operations employed 272 people.

Belarus

The sales revenues of Belarusian segment for Q1 2014 amounted to EUR 0.5 million (-0.2 m€, -31.7%), EBITDA to EUR -0.1 million (-0.2 m€, -148.5%) and operating loss to EUR 0.1 million (-0.2 m€). Gaming revenue decreased 31.2% y-o-y amounting to EUR 0.4 million.

At the end of March 2014, there were 4 Olympic casinos with 187 slot machines operating in Belarus. As at 31 March 2014, the Belarusian operations employed 86 people.

Italy

The sales revenues of Italian segment before deducting the gaming tax of Italy for Q1 2014 amounted to EUR 1.6 million (‑0.2 m€, -12.7%), EBITDA to EUR 0.1 million (+0.1 m€, +160.5%) and operating profit to EUR 0.1 million.

At the end of March 2014, there were 2 VLT slot casinos with 112 slot machines operating in Italy under Slottery trademark. As at 31 March 2014, there were 7 employees in Italy.

 

Financial position

As at 31 March 2014, the total assets of the Group amounted to EUR 122.3 million, up 3.4% or EUR 4.0 million during Q1 2014.

Current assets totalled EUR 51.2 million or 41.9% of total assets, and non-current assets EUR 71.0 million or 58.1% of total assets. The liabilities amounted to EUR 15.2 million and equity to EUR 107.1 million. The largest liabilities included tax liabilities (4.5 m€), suppliers payable and customer prepayments (4.2 m€) and payables to employees (4.1 m€).

Investments

In the first 3 months of 2014, the Group’s expenditures on property, plant and equipment totalled EUR 3.6 million (+0.0 m€), of which EUR 1.5 million was invested to new gaming equipment (-0.8m€) and EUR 1.9 million (+0.7 m€) to construction and reconstruction of casinos.

Cash flows

In Q1 of 2014, the Group’s cash flows generated from operating activities amounted to EUR 5.6 million (+1.0 m€) and cash flows used in investing activities to EUR 5.0 million (-11.8 m€). Financing cash flows amounted to EUR ‑0.1 million (‑0.0 m€). Net cash flows totalled EUR 0.5 million (-10.8 m€).

Staff

As at 31 March 2014, the Group employed 2,505 people, up by 117 y-o-y mostly due to expansion in Latvia.

In the first 3 months of 2014, total personnel expenses amounted to EUR 9.5 million (+1.2 m€, +14.3%). 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 225 thousand (222 thousand in Q1 2013) and EUR 39 thousand (EUR 39 thousand in Q1 2013), respectively.

 

Consolidated statement of financial position

(EUR thousands) 31.03.2014 31.12.2013
ASSETS    
Current assets    
Cash and cash equivalents 45,108 44,582
Financial investments 1,147 1,086
Receivables and prepayments 3,480 2,946
Prepaid income tax 357 357
Inventories 1,116 1,001
Total current assets 51,208 49,972
     
Non-current assets    
Deferred tax assets 1,089 1,077
Financial investments 4,140 3,396
Other long-term receivables 658 670
Investment property 1,784 1,784
Property, plant and equipment 28,125 26,513
Intangible assets 35,250 34,865
Total non-current assets 71,046 68,305
     
TOTAL ASSETS 122,254 118,277
     
     
LIABILITIES AND EQUITY    
Current liabilities    
Borrowings 240 240
Trade and other payables 12,870 13,494
Income tax payable 537 776
Provisions 972 1,181
Total current liabilities 14,619 15,691
     
Non-current liabilities    
Deferred tax liability 241 246
Borrowings 312 369
Total non-current liabilities 553 615
     
TOTAL LIABILITIES 15,172 16,306
     
EQUITY    
Share capital 60,532 60,532
Statutory reserve capital 1,210 1,210
Other reserves 247 235
Translation reserves -1,098 -1,204
Retained earnings 41,520 36,782
Total equity attributable to equity holders of the parent 102,411 97,555
Non-controlling interest 4,671 4,416
TOTAL EQUITY 107,082 101,971
     
TOTAL LIABILITIES AND EQUITY 122,254 118,277

 

Consolidated statement of comprehensive income

(EUR thousands) Q1 2014 Q1 2013
     
Income from gaming transactions 32,719 30,884
Revenue 2,088 2,175
Other income 102 225
Total revenue and income 34,909 33,284
     
Cost of materials, goods and services -723 -707
Other operating expenses -16,527 -15,968
Staff costs -9,494 -8,303
Depreciation, amortisation and impairment -1,960 -2,108
Other expenses -131 -61
Total operating expenses -28,835 -27,147
     
Operating profit 6,074 6,137
     
Interest income 29 32
Interest expense -3 -4
Foreign exchange gains (losses) -1 5
Other finance income and costs -1 -621
Total finance income and costs 24 -588
     
Profit from operating activities 6,098 5,549
     
Income tax expense -962 -797
Net profit for the period 5,136 4,752
Attributable to equity holders of the parent company 4,881 4,580
Attributable to non-controlling interest 255 172
     
     
Other comprehensive income:    
Items that may be subsequently reclassified to profit    
     
Currency translation differences 106 -426
Total comprehensive profit for the period 5,242 4,326
Attributable to equity holders of the parent company 4,987 4,154
Attributable to non-controlling interest 255 172
     
     
Basic earnings per share* 3.2 3.0
Diluted earnings per share* 3.2 3.0

* euro cents

 

Madis Jääger
CEO
Olympic Entertainment Group AS
Tel + 372 667 1250
E-mail madis.jaager@oc.eu
http://www.olympic-casino.com