Key performance indicators of the Group
Q1 2015 | Q1 2014 | Q1 2013 | ||
Revenues | m€ | 39.2 | 34.9 | 33.3 |
Gaming tax | m€ | 7.5 | 7.0 | 6.8 |
EBITDA | m€ | 8.8 | 8.0 | 8.2 |
EBIT | m€ | 7.0 | 6.1 | 6.1 |
Net profit | m€ | 5.5 | 4.9 | 4.6 |
EBITDA margin | % | 22.5% | 23.0% | 24.8% |
Operating margin | % | 17.8% | 17.4% | 18.4% |
Net margin | % | 14.0% | 14.0% | 13.8% |
Assets | m€ | 135.5 | 122.3 | 113.2 |
Equity | m€ | 115.6 | 107.1 | 97.3 |
ROE | % | 5.2% | 5.0% | 5.1% |
ROA | % | 4.2% | 4.2% | 4.1% |
Current ratio | times | 2.8 | 3.5 | 3.6 |
Casinos at end of period | # | 96 | 82 | 66 |
Casino floor area at end of period | m2 | 31,603 | 27,181 | 25,232 |
Employees | # | 2,656 | 2,505 | 2,381 |
Slot machines at end of period | # | 3,425 | 3,011 | 2,693 |
Gaming tables at end of period | # | 197 | 191 | 184 |
Key developments of the Group during the first quarter of 2015:
- The Group’s consolidated sales revenues for Q1 2015 amounted to EUR 39.1 million, up 12.4% or EUR 4.3 million y‑o‑y.
- Gaming revenues accounted for 93.9% (36.7 m€) and other revenues for 6.1% (2.4 m€) of the Group’s consolidated sales revenues for Q1 2015. A year before the revenue split was 94.0% (32.7 m€) and 6.0% (2.1 m€), respectively.
- The Group’s consolidated EBITDA for Q1 2015 amounted to EUR 8.8 million, a growth of 9.9% from EUR 8.0 million a year before. The Group’s consolidated operating profit increased EUR 0.9 million (+15.1%) to EUR 7.0 million.
- The Group’s consolidated net profit attributable to equity holders of the parent company for Q1 2015 totalled EUR 5.5 million compared to EUR 4.9 million a year ago.
- Group company Olympic Casino Eesti AS has acquired on 4 March 2015 business activities of two operating casinos from the Estonian casino operator Casino Cleopatra OÜ that increases the number of casinos Group owns in Estonia to 20.
- On 14 January 2015 Olympic Entertainment Group AS has established subsidiaries OEG Malta Holding Ltd and OEG Malta Gaming Ltd in Malta. OEG Malta subsidiary has concluded an agreement for providing casino management services and related service to Maltese company Casino Malta Limited and associated companies.
- The general meeting of shareholders held on 16 April 2015 has decided to pay out dividends in amount of EUR 15,179,120.60, that were paid out to shareholders on 4 May 2015.
The Group’s consolidated sales revenues by segments:
‘000€ | Q1 2015 | Q1 2014 | Change |
Estonia | 8,344 | 7,788 | 7.1% |
Latvia | 12,093 | 10,415 | 16.1% |
Lithuania | 5,865 | 5,499 | 6.7% |
Poland | 6,496 | 6,218 | 4.5% |
Slovakia | 3,730 | 3,625 | 2.9% |
Belarus | 285 | 472 | -39.6% |
Italy | 2,301 | 790 | 191.3% |
Total | 39,114 | 34,807 | 12.4% |
At the end of March 2015, the Group had 96 casinos with total floor area of 31,603 m² (+4,422 m2).
Number of casinos by segment:
31 March 2015 | 31 March 2014 | |
Estonia | 20 | 18 |
Latvia | 37 | 38 |
Lithuania | 16 | 12 |
Poland | 2 | 3 |
Slovakia | 7 | 5 |
Belarus | 2 | 4 |
Italy | 12 | 2 |
Total | 96 | 82 |
The Group’s consolidated operating expenses for Q1 2015 amounted to EUR 32.2 million, up 11.7% or EUR 3.4 million y-o-y. The growth was highest in personnel expenses (+1.3 m€, +13.6%), gaming tax (+0.4 m€, +5.9%), rent expenses (+0.3 m€, +8.8%) and other services costs (+1.1 m€, +27.5%). Amortisation and depreciation cost declined the most (-0.1 m€, -6.4%). Personnel expenses (10.8 m€) and gaming tax (7.5 m€) represented the largest cost items accounting for 56.7% of total operating expenses.
Overview by markets
Estonia
The sales revenues of Estonian segment for Q1 2015 amounted to EUR 8.3 million (+0.6 m€, +7.1%), EBITDA to EUR 1.6 million (-0.2 m€, -9.4%) and operating profit to EUR 1.2 million (-0.1 m€, -10.3%). Gaming revenue increased 6.4% y-o-y amounting to EUR 7.9 million.
At the end of March 2015, there were 20 Olympic casinos with 817 slot machines and 19 gaming tables operating in Estonia. As at 31 March 2015, the Estonian operations employed 488 people.
Latvia
The sales revenues of Latvian segment for Q1 2015 amounted to EUR 12.1 million (+1.7 m€, +16.1%), EBITDA to EUR 5.2 million (+1.4 m€, +36.0%) and operating profit to EUR 4.5 million (+1.4 m€, +43.7%). Gaming revenue increased 16.0% y-o-y amounting to EUR 11.1 million.
At the end of March 2015, there were 37 Olympic casinos with 1,056 slot machines and 19 gaming tables operating in Latvia. As at 31 March 2015, the Latvian operations employed 692 people.
Lithuania
The sales revenues of Lithuanian segment for Q1 2015 amounted to EUR 5.9 million (+0.4 m€, +6.7%), EBITDA to EUR 1.2 million (+0.1 m€, +7.1%) and operating profit to EUR 1.0 million (+0.1 m€, +10.5%). Gaming revenue increased 7.9% y-o-y amounting to EUR 5.6 million.
At the end of March 2015, there were 16 Olympic casinos with 519 slot machines and 64 gaming tables operating in Lithuania. As at 31 March 2015, the Lithuanian operations employed 737 people.
Poland
The sales revenues of Polish segment for Q1 2015 amounted to EUR 6.5 million (+0.3 m€, +4.5%), EBITDA to EUR 0.8 million (-0.1 m€, -12.2%) and operating profit to EUR 0.7 million (-0.1 m€, -6.5%). Gaming revenue increased 4.5% y-o-y amounting to EUR 6.4 million.
At the end of March 2015, there were 2 Olympic casinos with 210 slot machines and 42 gaming tables operating in Poland. As at 31 March 2014, the Polish operations employed 306 people.
Slovakia
The sales revenues of Slovak segment for Q1 2015 amounted to EUR 3.7 million (+0.1 m€, +2.9%), EBITDA to EUR -0.1 million (-0.3 m€, -116.6%) and operating loss to EUR -0.3 million (-0.2 m€, -531.6%). Gaming revenue increased 0.7% y-o-y amounting to EUR 3.2 million.
At the end of March 2015, there were 7 Olympic casinos with 292 slot machines and 53 gaming tables operating in Slovakia. As at 31 March 2015, the Slovak operations employed 313 people.
Belarus
The sales revenues of Belarusian segment for Q1 2015 amounted to EUR 0.3 million (-0.2 m€, -39.6%), EBITDA to EUR -0.2 million (-0.1 m€, -174.2%) and operating loss to EUR -0.2 million (-0.1 m€, -145.5%). Gaming revenue decreased 40.3% y‑o‑y amounting to EUR 0.3 million.
At the end of March 2015, there were 2 Olympic casinos with 93 slot machines operating in Belarus. As at 31 March 2015, the Belarusian operations employed 64 people.
Italy
The sales revenues of Italian segment before deducting the gaming tax of Italy for Q1 2015 amounted to EUR 5.0 million (+3.4 m€, +210.1%), EBITDA to EUR 0.2 million (+0.0 m€, +1.7%) and operating profit to EUR 0.1 million (-0.0 m€, -17.1%).
At the end of March 2015, there were 12 VLT slot casinos with 438 slot machines operating in Italy. As at 31 March 2015, the Italian operations employed 56 people.
Financial position
As at 31 March 2015, the total assets of the Group amounted to EUR 135.5 million, up 10.8% or EUR 13.2 million compared to the same period a year ago.
Current assets totalled EUR 51.6 million or 38.1% of total assets, and non-current assets EUR 83.9 million or 61.9% of total assets. The liabilities amounted to EUR 19.9 million and equity to EUR 115.6 million. The largest liabilities included suppliers payables and advances (6.2 m€), tax liabilities (5.4 m€) and payables to employees (4.3 m€).
Investments
In the 3 months of 2015, the Group’s expenditures on property, plant and equipment totalled EUR 5.6 million (+2.0 m€, +56.2%), of which EUR 1.1 million was invested into new gaming equipment (-0.4m€, -28.8%) and EUR 4.4 million (+2.5 m€, +129.8%) into construction of hotel and construction and reconstruction of casinos.
Cash flows
In the 3 months of 2015, the Group’s cash flows generated from operating activities amounted to EUR 8.9 million (+3.3 m€, +59.1%) and cash flows used in investing activities to EUR -2.9 million (+2.1 m€). Financing cash flows amounted to EUR -0.2 million (-0.1 m€). Net cash flows totalled EUR 5.8 million (+5.3 m€).
Staff
As at 31 March 2015, the Group employed 2,656 people, up by 151 y-o-y mostly due to expansion in Italy and Lithuania.
In the 3 months of 2015, total personnel expenses amounted to EUR 10.8 million (+1.3 m€, +13.6%). In the 3 months of 2015, 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 230 thousand (EUR 225 thousand in the 3 months of 2014) and EUR 37 thousand (EUR 39 thousand in the 3 months of 2014), respectively.
Consolidated statement of financial position
(EUR thousands) | 31.03.2015 | 31.12.2014 |
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 45,942 | 40,117 |
Financial investments | 1,154 | 1,108 |
Receivables and prepayments | 2,834 | 3,276 |
Prepaid income tax | 483 | 483 |
Inventories | 1,203 | 1,163 |
Assets held for sale | 0 | 1,016 |
Total current assets | 51,616 | 47,163 |
Non-current assets | ||
Deferred tax assets | 1,478 | 1,398 |
Financial investments | 4,406 | 4,277 |
Other long-term receivables | 723 | 688 |
Investment property | 292 | 292 |
Property, plant and equipment | 38,111 | 34,368 |
Intangible assets | 38,864 | 38,045 |
Total non-current assets | 83,874 | 79,068 |
TOTAL ASSETS | 135,490 | 126,231 |
LIABILITIES AND EQUITY | ||
Current liabilities | ||
Borrowings | 253 | 253 |
Trade and other payables | 16,394 | 13,121 |
Income tax payable | 708 | 741 |
Provisions | 1,016 | 1,424 |
Total current liabilities | 18,371 | 15,539 |
Non-current liabilities | ||
Borrowings | 1,166 | 1,216 |
Deferred tax liability | 328 | 272 |
Total non-current liabilities | 1,494 | 1,488 |
TOTAL LIABILITIES | 19,865 | 17,027 |
EQUITY | ||
Share capital | 60,716 | 60,716 |
Share premium | 258 | 258 |
Statutory reserve capital | 2,495 | 2,495 |
Other reserves | 82 | 0 |
Translation reserves | -899 | -1,420 |
Retained earnings | 47,286 | 41,816 |
Total equity attributable to equity holders of the parent | 109,938 | 103,865 |
Non-controlling interest | 5,687 | 5,339 |
TOTAL EQUITY | 115,625 | 109,204 |
TOTAL LIABILITIES AND EQUITY | 135,490 | 126,231 |
Consolidated statement of comprehensive income
(EUR thousands) | Q1 2015 | Q1 2014 |
Income from gaming transactions | 36,724 | 32,719 |
Revenue | 2,390 | 2,088 |
Other income | 85 | 102 |
Total revenue and income | 39,199 | 34,909 |
Cost of materials, goods and services | -893 | -723 |
Other operating expenses | -18,571 | -16,527 |
Staff costs | -10,780 | -9,494 |
Depreciation, amortisation and impairment | -1,836 | -1,960 |
Other expenses | -129 | -131 |
Total operating expenses | -32,209 | -28,835 |
Operating profit | 6,990 | 6,074 |
Interest income | 17 | 29 |
Interest expense | -7 | -3 |
Foreign exchange losses | -1 | -1 |
Other finance income and costs | -2 | -1 |
Total finance income and costs | 7 | 24 |
Profit from operating activities | 6,997 | 6,098 |
Income tax expense | -1,179 | -962 |
Net profit for the period | 5,818 | 5,136 |
Attributable to equity holders of the parent company | 5,470 | 4,881 |
Attributable to non-controlling interest | 348 | 255 |
Other comprehensive income | ||
Currency translation differences | 521 | 106 |
Total comprehensive profit for the period | 6,339 | 5,242 |
Attributable to equity holders of the parent company | 5,991 | 4,987 |
Attributable to non-controlling interest | 348 | 255 |
Basic earnings per share* | 3.6 | 3.2 |
Diluted earnings per share* | 3.6 | 3.2 |
* euro cents
Madis Jääger
CEO
Olympic Entertainment Group AS
Tel + 372 667 1250
E-mail madis.jaager@oc.eu
http://www.olympic-casino.com