Key performance indicators of the Group
| 2014 | 2013 | 2012 | ||
| Revenues | m€ | 150.7 | 145.8 | 135.9 |
| Gaming tax | m€ | 28.2 | 28.9 | 27.5 |
| EBITDA | m€ | 36.2 | 39.5 | 38.7 |
| EBIT | m€ | 25.8 | 31.8 | 28.4 |
| Net profit | m€ | 21.6 | 25.7 | 24.2 |
| EBITDA margin | % | 24.0 | 27.1 | 28.5 |
| Operating margin | % | 17.1 | 21.8 | 20.9 |
| Net margin | % | 14.3 | 17.7 | 17.8 |
| Assets | m€ | 126.2 | 118.3 | 109.2 |
| Equity | m€ | 109.2 | 102.0 | 93.0 |
| ROE | % | 21.4 | 27.9 | 29.4 |
| ROA | % | 17.7 | 22.6 | 23.0 |
| Current ratio | times | 3.0 | 3.2 | 3.5 |
| Casinos at end of period | # | 98 | 82 | 63 |
| Casino floor area at end of period | m2 | 32,242 | 28,031 | 24,030 |
| Employees | # | 2,665 | 2,515 | 2,277 |
| Slot machines at end of period | # | 3,481 | 3,038 | 2,594 |
| Gaming tables at end of period | # | 195 | 191 | 178 |
Key developments of the Group during the 12 months of 2014:
- The Group’s consolidated sales revenues for 12 months 2014 amounted to EUR 150.3 million, up 3.5% or EUR 5.1 million y‑o‑y.
- Gaming revenues accounted for 93.9% (141.1 m€) and other revenues for 6.1% (9.2 m€) of the Group’s consolidated sales revenues for 12 months 2014. A year before the revenue split was 93.6% (135.9 m€) and 6.4% (9.3 m€), respectively.
- The Group’s consolidated EBITDA for 12 months 2014 amounted to EUR 36.2 million, a decline of -8.6% from EUR 39.5 million a year before. The Group’s consolidated operating profit decreased EUR 6.0 million (-18.8%) to EUR 25.8 million.
- The Group´s consolidated net profit attributable to equity holders of the parent company for 12 months 2014 totalled EUR 21.6 million compared to EUR 25.7 million a year ago.
- On 23 January 2014 Olympic Entertainment Group AS has acquired 100% shareholding in Slovak VLT slot casino operator WINWIN Slovakia S.r.o. (renamed later as OlyBet Slovakia S.r.o.) and has opened its first VLT casino on Slovak market during the second quarter of 2014.
- The general meeting of shareholders held on 25 April 2014 has decided to pay out dividends in amount of EUR 15,132,950.50, that were paid out to shareholders on 13 May 2014.
- On 29 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 Slottery S.r.l.
- In May 2014 Olympic Entertainment Group AS has adopted a decision to restructure its Latvian subsidiaries, which leaded to conversion of Olympic Casino Latvia SIA share capital into euros and its increase. It was also decided to merge OEG Latvian subsidiries Olympic Casino Latvia SIA and Altea SIA. Merger process was completed at 3rd December 2014.
- On 21 July 2014 the supervisory board of Olympic Entertainment Group AS has adopted a resolution to increase the share capital of the Company by EUR 184,680.40 by issuing shares without nominal value. The amount of share capital of the Company after the issuing of new shares is EUR 60,716,482.40. The increase of share capital relates to share option agreements concluded by the Company in 2011 and the exercise of options by option holders.
The Group’s consolidated sales revenues by segments:
| ‘000€ | Q4 2014 | Q4 2013 | Change | 12M 2014 | 12M 2013 | Change |
| Estonia | 8,829 | 9,217 | -4.2% | 33,079 | 35,229 | -6.1% |
| Latvia | 13,268 | 11,775 | 12.7% | 47,825 | 39,267 | 21.8% |
| Lithuania | 5,969 | 6,006 | -0.6% | 22,297 | 21,503 | 3.7% |
| Poland | 5,357 | 7,100 | -24.5% | 22,819 | 27,408 | -16.7% |
| Slovakia | 4,146 | 4,150 | -0.1% | 15,796 | 16,109 | -1.9% |
| Belarus | 448 | 570 | -21.4% | 1,897 | 2,378 | -20.2% |
| Italy | 2,203 | 827 | 166.4% | 6,600 | 3,357 | 96.6% |
| Total | 40,220 | 39,645 | 1.5% | 150,313 | 145,251 | 3.5% |
Number of casinos by segment:
| 31 December 2014 | 31 December 2013 | |
| Estonia | 18 | 18 |
| Latvia | 37 | 38 |
| Lithuania | 16 | 12 |
| Poland | 2 | 3 |
| Slovakia | 7 | 5 |
| Belarus | 6 | 4 |
| Italy | 12 | 2 |
| Total | 98 | 82 |
Overview by markets
Estonia
The sales revenues of Estonian segment for 2014 amounted to EUR 33.1 million (-2.1 m€, -6.1%), EBITDA to EUR 8.0 million (-1.3 m€, -13.6%) and operating profit to EUR 6.4 million (-1.3 m€, -16.5%). Gaming revenue decreased 2.6% y-o-y amounting to EUR 31.6 million.
At the end of 2014, there were 18 Olympic casinos with 737 slot machines and 19 gaming tables operating in Estonia. As at 31 December 2014, the Estonian operations employed 476 people.
Latvia
The sales revenues of Latvian segment for 2014 amounted to EUR 47.8 million (+8.6 m€, +21.8%), EBITDA to EUR 20.6 million (+3.6 m€, +21.0%) and operating profit to EUR 17.2 million (+2.5 m€, +17.1%). Gaming revenue increased 21.1% y-o-y amounting to EUR 43.8 million.
At the end of 2014, there were 37 Olympic casinos with 1,059 slot machines and 18 gaming tables operating in Latvia. As at 31 December 2014, the Latvian operations employed 679 people.
Lithuania
The sales revenues of Lithuanian segment for 2014 amounted to EUR 22.3 million (+0.8 m€, +3.7%), EBITDA to EUR 4.4 million (-0.4 m€, -8.9%) and operating profit to EUR 2.9 million (-0.7 m€, -20.1%). Gaming revenue increased 3.6% y-o-y amounting to EUR 21.0 million.
At the end of 2014, there were 16 Olympic casinos with 516 slot machines and 64 gaming tables operating in Lithuania. As at 31 December 2014, the Lithuanian operations employed 715 people.
Poland
The sales revenues of Polish segment for 2014 amounted to EUR 22.8 million (-4.6 m€, -16.7%), EBITDA to EUR 3.2 million (-2.4 m€, -42.6%) and operating profit to EUR 2.1 million (-2.4 m€, -54.1%). Gaming revenue decreased 17.0% y-o-y amounting to EUR 22.4 million.
At the end of 2014, there were 2 Olympic casinos with 210 slot machines and 41 gaming tables operating in Poland. As at 31 December 2014, the Polish operations employed 335 people.
Slovakia
The sales revenues of Slovak segment for 2014 amounted to EUR 15.8 million (-0.3 m€, -1.9%), EBITDA to EUR 0.5 million (-1.8 m€, -78.5%) and operating loss to EUR -0.6 million (-1.7 m€, -158.0%). Gaming revenue decreased 3.4% y-o-y amounting to EUR 14.0 million.
At the end of 2014, there were 7 Olympic casinos with 308 slot machines and 53 gaming tables operating in Slovakia. As at 31 December 2014, the Slovak operations employed 306 people.
Belarus
The sales revenues of Belarusian segment for 2014 amounted to EUR 1.9 million (-0.5 m€, -20.2%), EBITDA to EUR -0.6 million (-0.7 m€, -544.1%) and operating loss to EUR -1.8 million (-1.9 m€, -3,799.7%). Gaming revenue decreased 20.3% y‑o‑y amounting to EUR 1.8 million.
At the end of 2014, there were 6 Olympic casinos with 227 slot machines operating in Belarus. As at 31 December 2014, the Belarusian operations employed 96 people.
Italy
The sales revenues of Italian segment before deducting the gaming tax of Italy for 2014 amounted to EUR 14.0 million (+6.9 m€, +98.1%), EBITDA to EUR 0.0 million (-0.4 m€, -99.0%) and operating loss to EUR -0.4 million (-0.5 m€, -508.7%).
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 2014, there were 12 VLT slot casinos with 424 slot machines operating in Italy. As at 31 December 2014, the Italian operations employed 58 people.
Financial position
As at 31 December 2014, the total assets of the Group amounted to EUR 126.2 million, up 6.7% or EUR 7.9 million compared to the same period a year ago.
Current assets totalled EUR 47.2 million or 37.4% of total assets, and non-current assets EUR 79.0 million or 62.6% of total assets. The liabilities amounted to EUR 17.0 million and equity to EUR 109.2 million. The largest liabilities included suppliers payables and advances (5.0 m€), tax liabilities (4.3 m€) and payables to employees (3.9 m€).
Investments
In the 12 months of 2014, the Group’s expenditures on property, plant and equipment totalled EUR 18.3 million (+4.0 m€, +28.0%), of which EUR 6.4 million was invested into new gaming equipment (-0.5m€, -7.2%) and EUR 11.2 million (+4.6 m€, +69.7%) into construction of hotel and construction and reconstruction of casinos.
Cash flows
In the 12 months of 2014, the Group’s cash flows generated from operating activities amounted to EUR 32.5 million (-0.7 m€, -2.1%) and cash flows used in investing activities to EUR -22.9 million (-16.1 m€). Financing cash flows amounted to EUR -14.1 million (+3.7 mln eurot, +26.6%). Net cash flows totalled EUR ‑4.5 million (-13.1 m€).
Staff
As at 31 December 2014, the Group employed 2,665 people, up by 150 y-o-y mostly due to expansion in Italy and Lithuania.
In the 12 months of 2014, total personnel expenses amounted to EUR 39.0 million (+3.1 m€, +8.7%). In the 12 months of 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 793 thousand (823 thousand in the 12 months of 2013) and EUR 151 thousand (EUR 157 thousand in the 12 months of 2013), respectively.
Consolidated statement of financial position
| (EUR thousands) | 31.12.2014 | 31.12.2013 |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 40,117 | 44,582 |
| Financial investments | 1,108 | 1,086 |
| Receivables and prepayments | 3,276 | 2,946 |
| Prepaid income tax | 483 | 357 |
| Inventories | 1,163 | 1,001 |
| Assets held for sale | 1,016 | 0 |
| Total current assets | 47,163 | 49,972 |
| Non-current assets | ||
| Deferred tax assets | 1,398 | 1,077 |
| Financial investments | 4,277 | 3,396 |
| Other long-term receivables | 688 | 670 |
| Investment property | 292 | 1,784 |
| Property, plant and equipment | 34,368 | 26,513 |
| Intangible assets | 38,045 | 34,865 |
| Total non-current assets | 79,068 | 68,305 |
| TOTAL ASSETS | 126,231 | 118,277 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Borrowings | 253 | 240 |
| Trade and other payables | 13,121 | 13,494 |
| Income tax payable | 741 | 776 |
| Provisions | 1,424 | 1,181 |
| Total current liabilities | 15,539 | 15,691 |
| Non-current liabilities | ||
| Deferred tax liability | 272 | 246 |
| Borrowings | 1,216 | 369 |
| Total non-current liabilities | 1,488 | 615 |
| TOTAL LIABILITIES | 17,027 | 16,306 |
| EQUITY | ||
| Share capital | 60,716 | 60,532 |
| Share premium | 258 | 0 |
| Statutory reserve capital | 2,495 | 1,210 |
| Other reserves | 0 | 235 |
| Translation reserves | -1,420 | -1,204 |
| Retained earnings | 41,816 | 36,782 |
| Total equity attributable to equity holders of the parent | 103,865 | 97,555 |
| Non-controlling interest | 5,339 | 4,416 |
| TOTAL EQUITY | 109,204 | 101,971 |
| TOTAL LIABILITIES AND EQUITY | 126,231 | 118,277 |
Consolidated statement of comprehensive income
| (EUR thousands) | Q4 2014 | Q4 2013 | 2014 | 2013 |
| Income from gaming transactions | 37,600 | 37,285 | 141,077 | 135,921 |
| Revenue | 2,620 | 2,360 | 9,236 | 9,330 |
| Other income | 58 | 287 | 347 | 568 |
| Total revenue and income | 40,278 | 39,932 | 150,660 | 145,819 |
| Cost of materials, goods and services | -959 | -816 | -3,342 | -3,044 |
| Other operating expenses | -19,421 | -18,010 | -71,507 | -66,826 |
| Staff costs | -10,440 | -9,875 | -38,982 | -35,878 |
| Depreciation, amortisation and impairment | -4,064 | -1,780 | -10,344 | -7,763 |
| Change in the fair value of investment property | -12 | -1 | -12 | -1 |
| Other expenses | -365 | -333 | -678 | -524 |
| Total operating expenses | -35,261 | -30,815 | -124,865 | -114,036 |
| Operating profit | 5,017 | 9,117 | 25,795 | 31,783 |
| Interest income | 31 | 42 | 89 | 163 |
| Interest expense | -8 | -4 | -28 | -17 |
| Foreign exchange losses | 8 | -1 | 3 | -59 |
| Other finance income and costs | -2 | -1 | -4 | -623 |
| Total finance income and costs | 29 | 36 | 60 | -536 |
| Profit from operating activities | 5,046 | 9,153 | 25,855 | 31,247 |
| Income tax expense | -532 | -1,444 | -3,426 | -4,323 |
| Net profit for the period | 4,514 | 7,709 | 22,429 | 26,924 |
| Attributable to equity holders of the parent company | 4,376 | 7,402 | 21,597 | 25,694 |
| Attributable to non-controlling interest | 138 | 307 | 832 | 1,230 |
| Other comprehensive income | ||||
| Currency translation differences | -323 | 83 | -216 | -504 |
| Total comprehensive profit for the period | 4,191 | 7,792 | 22,213 | 26,420 |
| Attributable to equity holders of the parent company | 4,053 | 7,485 | 21,381 | 25,190 |
| Attributable to non-controlling interest | 138 | 307 | 832 | 1,230 |
| Basic earnings per share* | 2.9 | 4.9 | 14.2 | 17.0 |
| Diluted earnings per share* | 2.9 | 4.9 | 14.2 | 17.0 |
* euro cents
Madis Jääger
CEO
Olympic Entertainment Group AS
Tel + 372 667 1250
E-mail madis.jaager@oc.eu
http://www.olympic-casino.com
