Key performance indicators of the Group
|Q1 2014||Q1 2013||Q1 2012|
|Casinos at end of period||#||82||66||61|
|Casino floor area at end of period||m2||27,181||25,232||23,418|
|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 revenue by segments:
|‘000€||Q1 2014||Q1 2013||Change|
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|
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
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.
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.
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.
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.
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.
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.
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.
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€).
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.
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€).
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
|Cash and cash equivalents||45,108||44,582|
|Receivables and prepayments||3,480||2,946|
|Prepaid income tax||357||357|
|Total current assets||51,208||49,972|
|Deferred tax assets||1,089||1,077|
|Other long-term receivables||658||670|
|Property, plant and equipment||28,125||26,513|
|Total non-current assets||71,046||68,305|
|LIABILITIES AND EQUITY|
|Trade and other payables||12,870||13,494|
|Income tax payable||537||776|
|Total current liabilities||14,619||15,691|
|Deferred tax liability||241||246|
|Total non-current liabilities||553||615|
|Statutory reserve capital||1,210||1,210|
|Total equity attributable to equity holders of the parent||102,411||97,555|
|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|
|Total revenue and income||34,909||33,284|
|Cost of materials, goods and services||-723||-707|
|Other operating expenses||-16,527||-15,968|
|Depreciation, amortisation and impairment||-1,960||-2,108|
|Total operating expenses||-28,835||-27,147|
|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