Key performance indicators of the Group
|H1 2014||H1 2013||H1 2012|
|Casinos at end of period||#||93||83||62|
|Casino floor area (m2) at end of period||m2||31,060||26,235||23,480|
|Slot machines at end of period||#||3,337||3,056||2,487|
|Gaming tables at end of period||#||192||189||183|
Key developments of the Group during the first half-year of 2014:
The Group’s consolidated sales revenues by segments:
|‘000€||Q2 2014||Q2 2013||Change||H1 2014||H1 2013||Change|
Number of casinos by segment:
|30 June 2014||30 June 2013|
The Group’s consolidated operating expenses for H1 2014 amounted to EUR 59.6 million, up 8.5% or EUR 4.7 million y-o-y. The growth was highest in personnel expenses (+2.4 m€, +13.9%), rent expenses (+0.7 m€, +13.1%) and other services costs (+0.5 mln eurot, +44.0%). Amortization and depreciation cost declined the most (-0.1 m€, -3.5%). Personnel expenses (19.3 m€) and gaming tax (14.3 m€) represented the largest cost items accounting for 56.3% of total operating expenses.
Overview by markets
The sales revenues of Estonian segment for H1 2014 amounted to EUR 16.2 million (-0.1 m€, -1.0%), EBITDA to EUR 3.9 million (+0.3 m€, +7.8%) and operating profit to EUR 3.0 million (+0.1 m€, +4.1%). Gaming revenue increased 3.8% y-o-y amounting to EUR 15.5 million.
The market share of Olympic Casino Eesti AS in the Estonian land-based gaming market was 55% in Q2 2014, compared to 56% a year ago. Total Estonian gaming market increased by 6% as compared to the H1 2013.
At the end of H1 2014, there were 18 Olympic casinos with 737 slot machines and 19 gaming tables operating in Estonia. As at 30 June 2014, the Estonian operations employed 478 people.
The sales revenues of Latvian segment for H1 2014 amounted to EUR 21.7 million (+5.3 m€, +32.0%), EBITDA to EUR 8.3 million (+1.2 m€, +16.3%) and operating profit to EUR 6.8 million (+0.9 m€, +14.4%). Gaming revenue increased 32.4% y-o-y amounting to EUR 19.9 million.
The market share of Olympic Casino Latvia SIA in the Latvian gaming market was 23% in Q2 2014, compared to 21% a year ago. Total Latvian gaming market increased by 8% as compared to the H1 2013.
As at the end of H1 2014, there were 38 Olympic casinos with 1,066 slot machines and 18 gaming tables operating in Latvia. As at 30 June 2014, there were 690 employees in Latvia.
The sales revenues of Lithuanian segment for H1 2014 amounted to EUR 10.7 million (+0.7 m€, +6.7%), EBITDA to EUR 2.1 million (+0.1 m€, +5.8%) and operating profit to EUR 1.6 million (+0.4 m€, +30.1%). Gaming revenue increased 6.6% y-o-y amounting to EUR 10.1 million.
As at the end of H1 2014, there were 12 Olympic casinos with 428 slot machines and 63 gaming tables operating in Lithuania. As at 30 June 2014, the Lithuanian operations employed 670 people.
The sales revenues of Polish segment for H1 2014 amounted to EUR 12.2 million (-1.4 m€, -10.1%), EBITDA to EUR 1.8 million (-0.9 m€, -32.5%) and operating profit to EUR 1.5 million (-0.6 m€, -28.5%). Gaming revenue decreased 10.4% y-o-y amounting to EUR 12.0 million.
As at the end of H1 2014, there were 2 Olympic casinos with 215 slot machines and 39 gaming tables operating in Poland. As at 30 June 2014, the Polish operations employed 327 people.
The sales revenues of Slovak segment for H1 2014 amounted to EUR 7.7 million (+0.0 m€, +0.4%), EBITDA to EUR 0.6 million (-0.4 m€, -41.4%) and operating profit to EUR 0.0 million (-0.4 m€, -90.6%). Gaming revenue decreased 0.9% y-o-y amounting to EUR 6.9 million.
As at the end of H1 2014, there were 6 Olympic casinos with 269 slot machines and 53 gaming tables operating in Slovakia. As at 30 June 2014, The Slovak operations employed 273 people.
The sales revenues of Belarusian segment for H1 2014 amounted to EUR 1.0 million (-0.3 m€, -23.0%), EBITDA to EUR -0.2 million (-0.3 m€, -398.0%) and operating profit to EUR -0.2 million (-0.2 m€, -1,936.8%). Gaming revenue decreased 22.2% y‑o‑y amounting to EUR 0.9 million.
As at the end of H1 2014, there were 6 Olympic casinos with 245 slot machines operating in Belarus. As at 30 June 2014, the Belarusian operations employed 98 people.
The sales revenues of Italian segment before deducting the gaming tax of Italy for H1 2014 amounted to EUR 5.2 million (+1.5 mln eurot, +40.2%), EBITDA to EUR 0.2 million (+0.02 mln, +10.5%) and operating profit to EUR 0.1 million (+0.0 mln, +23.8%).
In April 2014 Olympic Entertainment Group AS has increased to 70% its holding in The Box S.r.l, a company that manages operations in Italy, which in turn has acquired a 100% holding in VLT operaator Slottery S.r.l. As a result of this transaction at the end of H1 2014, there were 11 VLT slot casinos with 377 slot machines operating in Italy. As at 30 June 2014, the Italian operations employed 57 people.
As at 30 June 2014, the total assets of the Group amounted to EUR 115.4 million, up 14.3% or EUR 14.4 million compared to the same period a year ago.
Current assets totalled EUR 37.0 million or 32.0% of total assets, and non-current assets EUR 78.4 million or 68.0% of total assets. The liabilities amounted to EUR 17.6 million and equity to EUR 97.8 million. The largest liabilities included suppliers payables and advances (5.7 m€), tax liabilities (4.2 m€) and payables to employees (3.8 m€).
In H1 2014, the Group’s expenditures on property, plant and equipment totalled EUR 9.5 million (+3.4 m€, +55.7%), of which EUR 4.2 million was invested into new gaming equipment (+0.5m€, +13.5%) and EUR 4.9 million (+2.5 m€, +104.2%) into construction of hotel and construction and reconstruction of casinos.
In H1 2014, the Group’s cash flows generated from operating activities amounted to EUR 13.2 million (+2.5 m€, +23.9%) and cash flows from investing activities to EUR -13.6 million (-15.8 m€). Financing cash flows amounted to EUR -14.2 million (+3.6 mln eurot, +20.1%). Net cash flows totalled EUR ‑14.6 million (-9.6 m€).
As at 30 June 2014, the Group employed 2,593 people, up by 32 y-o-y mostly due to expansion in Italy.
In H1 2014, total personnel expenses amounted to EUR 19.3 million (+2.4 m€, +13.9%). In H1 2014, 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 449 thousand (447 thousand in H1 2013) and EUR 77 thousand (EUR 78 thousand in H1 2013), respectively.
Consolidated statement of financial position
(in EUR thousands)
|Cash and cash equivalents||30,013||44,582|
|Receivables and prepayments||4,175||2,946|
|Prepaid income tax||447||357|
|Total current assets||36,953||49,972|
|Deferred tax assets||1,099||1,077|
|Other long-term receivables||696||670|
|Property, plant and equipment||31,994||26,513|
|Total non-current assets||78,416||68,305|
|LIABILITIES AND EQUITY|
|Trade and other payables||14,176||13,494|
|Income tax payable||426||776|
|Total current liabilities||16,024||15,691|
|Deferred tax liability||219||246|
|Total non-current liabilities||1,560||615|
|Statutory reserve capital||2,495||1,210|
|Total equity attributable to equity holders of the parent||92,687||97,555|
|TOTAL LIABILITIES AND EQUITY||115,369||118,277|
Consolidated statement of comprehensive income
(in EUR thousands)
|Q2 2014||Q2 2013||H1 2014||H1 2013|
|Income from gaming transactions||34,977||31,766||67,696||62,650|
|Total revenue and income||37,334||34,111||72,243||67,395|
|Cost of materials, goods and services||-794||-742||-1,517||-1,448|
|Other operating expenses||-17,926||-16,278||-34,453||-32,247|
|Depreciation, amortisation and impairment||-2,095||-2,092||-4,055||-4,200|
|Total operating expenses||-30,764||-27,775||-59,599||-54,922|
|Foreign exchange losses||-4||-57||-6||-52|
|Other finance income and costs||0||0||-1||-621|
|Total finance income and costs||0||-38||24||-626|
|Profit from operating activities||6,570||6,298||12,668||11,847|
|Income tax expense||-811||-891||-1,773||-1,688|
|Net profit for the period||5,759||5,407||10,895||10,159|
|Attributable to equity holders of the parent company||5,423||5,079||10,304||9,660|
|Attributable to non-controlling interest||336||328||591||499|
|Other comprehensive income|
|Currency translation differences||-21||-426||84||-852|
|Total comprehensive profit for the period||5,738||4,981||10,979||9,307|
|Attributable to equity holders of the parent company||5,402||4,653||10,388||8,808|
|Attributable to non-controlling interest||336||328||591||499|
|Basic earnings per share*||3.6||3.4||6.8||6.4|
|Diluted earnings per share*||3.6||3.4||6.8||6.4|
* euro cents