Key performance indicators of the Group
H1 2015 | H1 2014 | H1 2013 | ||
Revenues | m€ | 81.0 | 72.2 | 67.4 |
Gaming tax | m€ | 15.5 | 14.3 | 14.0 |
EBITDA | m€ | 18.4 | 16.7 | 16.7 |
EBIT | m€ | 14.5 | 12.6 | 12.5 |
Net profit | m€ | 11.8 | 10.3 | 9.7 |
EBITDA margin | % | 22.7 | 23.1 | 24.7 |
Operating margin | % | 17.9 | 17.5 | 18.5 |
Net margin | % | 14.6 | 14.3 | 14.3 |
Assets | m€ | 125.0 | 115.4 | 101.0 |
Equity | m€ | 106.8 | 97.8 | 84.7 |
ROE | % | 12.2 | 10.8 | 11.5 |
ROA | % | 9.8 | 8.8 | 9.2 |
Current ratio | times | 2.2 | 2.3 | 2.4 |
Casinos at end of period | # | 96 | 93 | 83 |
Casino floor area at end of period | m2 | 30,263 | 31,060 | 26,235 |
Employees | # | 2,653 | 2,593 | 2,561 |
Slot machines at end of period | # | 3,367 | 3,337 | 3,056 |
Gaming tables at end of period | # | 185 | 192 | 189 |
Key developments of the Group during the first half-year of 2015:
- The Group’s consolidated sales revenues for H1 2015 amounted to EUR 80.7 million, up 12.1% or EUR 8.7 million y‑o‑y.
- Gaming revenues accounted for 94.0% (75.9 m€) and other revenues for 6.0% (4.8 m€) of the Group’s consolidated sales revenues for H1 2015. A year before the revenue split was 94.0% (67.7 m€) and 6.0% (4.3 m€), respectively.
- The Group’s consolidated EBITDA for H1 2015 amounted to EUR 18.4 million, a growth of 10.3% from EUR 16.7 million a year before. The Group’s consolidated operating profit increased EUR 1.9 million (+14.5%) to EUR 14.5 million.
- The Group’s consolidated net profit attributable to equity holders of the parent company for H1 2015 totalled EUR 11.8 million compared to EUR 10.3 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€ | Q2 2015 | Q2 2014 | Change | H1 2015 | H1 2014 | Change |
Estonia | 9,068 | 8,459 | 7.2% | 17,412 | 16,247 | 7.2% |
Latvia | 13,959 | 11,267 | 23.9% | 26,052 | 21,682 | 20.2% |
Lithuania | 4,923 | 5,206 | -5.4% | 10,789 | 10,705 | 0.8% |
Poland | 6,843 | 5,975 | 14.5% | 13,339 | 12,193 | 9.4% |
Slovakia | 4,076 | 4,111 | -0.9% | 7,806 | 7,736 | 0.9% |
Belarus | 203 | 494 | -58.9% | 487 | 966 | -49.6% |
Italy | 2,525 | 1,673 | 50.9% | 4,825 | 2,463 | 95.9% |
Total | 41,597 | 37,185 | 11.9% | 80,710 | 71,992 | 12.1% |
Number of casinos by segment:
30 June 2015 | 30 June 2014 | |
Estonia | 20 | 18 |
Latvia | 37 | 38 |
Lithuania | 17 | 12 |
Poland | 1 | 2 |
Slovakia | 7 | 6 |
Belarus | 2 | 6 |
Italy | 12 | 11 |
Total | 96 | 93 |
The Group’s consolidated operating expenses for H1 2015 amounted to EUR 66.5 million, up 11.6% or EUR 6.9 million y-o-y. The growth was highest in personnel expenses (+2.9 m€, +15.0%), gaming tax (+1.2 m€, +8.3%), rent expenses (+0.4 m€, +6.6%) and other services costs (+1.6 m€, +19.0%). Amortisation and depreciation cost declined the most (-0.1 m€, -3.1%). Personnel expenses (22.2 m€) and gaming tax (15.5 m€) represented the largest cost items accounting for 56.6% of total operating expenses.
Overview by markets
Estonia
The sales revenues of Estonian segment for H1 2015 amounted to EUR 17.4 million (+1.2 m€, +7.2%), EBITDA to EUR 3.1 million (-0.8 m€, -20.4%) and operating profit to EUR 2.2 million (-0.8 m€, -26.0%). Gaming revenue increased 6.7% y-o-y amounting to EUR 16.6 million.
At the end of H1 2015, there were 20 Olympic casinos with 817 slot machines and 20 gaming tables operating in Estonia. As at 30 June 2015, the Estonian operations employed 518 people.
Latvia
The sales revenues of Latvian segment for H1 2015 amounted to EUR 26.1 million (+4.4 m€, +20.2%), EBITDA to EUR 11.8 million (+3.5 m€, +42.2%) and operating profit to EUR 10.3 million (+3.6 m€, +52.5%). Gaming revenue increased 20.5% y‑o‑y amounting to EUR 24.0 million.
At the end of H1 2015, there were 37 Olympic casinos with 1,057 slot machines and 19 gaming tables operating in Latvia. As at 30 June 2015, the Latvian operations employed 684 people.
Lithuania
The sales revenues of Lithuanian segment for H1 2015 amounted to EUR 10.8 million (+0.1 m€, +0.8%), EBITDA to EUR 1.6 million (-0.5 m€, -24.1%) and operating profit to EUR 1.1 million (-0.5 m€, -32.6%). Gaming revenue increased 1.1% y-o-y amounting to EUR 10.2 million.
At the end of H1 2015, there were 17 Olympic casinos with 537 slot machines and 64 gaming tables operating in Lithuania. As at 30 June 2015, the Lithuanian operations employed 735 people.
Poland
The sales revenues of Polish segment for H1 2015 amounted to EUR 13.3 million (+1.1 m€, +9.4%), EBITDA to EUR 1.7 million (-0.1 m€, -7.2%) and operating profit to EUR 1.3 million (-0.1 m€, -8.4%). Gaming revenue increased 9.4% y-o-y amounting to EUR 13.1 million.
At the end H1 2015, there was 1 Olympic casino with 145 slot machines and 29 gaming tables operating in Poland. As at 30 June 2015, the Polish operations employed 276 people.
Slovakia
The sales revenues of Slovak segment for H1 2015 amounted to EUR 7.8 million (+0.1 m€, +0.9%), EBITDA to EUR 0.1 million (-0.5 m€, -86.2%) and operating loss to EUR -0.4 million (-0.5 m€, -1,218.7%). Gaming revenue decreased 0.4% y-o-y amounting to EUR 6.8 million.
At the end of H1 2015, there were 7 Olympic casinos with 297 slot machines and 53 gaming tables operating in Slovakia. As at 30 June 2015, the Slovak operations employed 328 people.
Belarus
The sales revenues of Belarusian segment for H1 2015 amounted to EUR 0.5 million (-0.5 m€, -49.5%), EBITDA to EUR -0.2 million (+0.0 m€, -21.0%) and operating loss to EUR -0.2 million (+0.1 m€, -28.0%). Gaming revenue decreased 49.9% y‑o‑y amounting to EUR 0.5 million.
At the end of H1 2015, there were 2 Olympic casinos with 76 slot machines operating in Belarus. As at 30 June 2015, the Belarusian operations employed 54 people.
Italy
The sales revenues of Italian segment before deducting the gaming tax of Italy for H1 2015 amounted to EUR 10.6 million (+5.4 m€, +202.1%), EBITDA to EUR 0.4 million (+0.1 m€, +51.1%) and operating profit to EUR 0.2 million (+0.1 m€, +153.6%).
At the end of H1 2015, there were 12 VLT slot casinos with 438 slot machines operating in Italy. As at 30 June 2015, the Italian operations employed 58 people.
Financial position
As at 30 June 2015, the total assets of the Group amounted to EUR 125.0 million, up 8.4% or EUR 9.7 million compared to the same period a year ago.
Current assets totalled EUR 37.1 million or 29.7% of total assets, and non-current assets EUR 87.9 million or 70.3% of total assets. The liabilities amounted to EUR 18.2 million and equity to EUR 106.8 million. The largest liabilities included suppliers payables and advances (5.3 m€), tax liabilities (4.6 m€) and payables to employees (4.3 m€).
Investments
In H1 2015, the Group’s expenditures on property, plant and equipment totalled EUR 11.9 million (+2.5 m€, +25.9%), of which EUR 2.9 million was invested into new gaming equipment (-1.3 m€, -30.2%) and EUR 8.8 million (+3.9 m€, +80.3%) into construction of hotel and construction and reconstruction of casinos.
Cash flows
In H1 2015, the Group’s cash flows generated from operating activities amounted to EUR 16.8 million (+3.6 m€, +27.5%) and cash flows used in investing activities to EUR -9.7 million (+3.9 m€). Financing cash flows amounted to EUR -15.4 million (-1.2 m€). Net cash flows totalled EUR -8.2 million (+6.3 m€).
Staff
As at 30 June 2015, the Group employed 2,653 people, up by 60 y-o-y mostly due to expansion in Italy and Lithuania.
In H1 2015, total personnel expenses amounted to EUR 22.2 million (+2.9 m€, +15.0%). In H1 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 434 thousand (EUR 449 thousand in H1 2014) and EUR 74 thousand (EUR 77 thousand in H1 2014), respectively.
Consolidated statement of financial position
(in EUR thousands) | 30.06.2015 | 31.12.2014 |
ASSETS | ||
Current assets | ||
Cash and cash equivalents | 31,890 | 40,117 |
Financial investments | 1,048 | 1,108 |
Receivables and prepayments | 2,775 | 3,276 |
Prepaid income tax | 235 | 483 |
Inventories | 1,165 | 1,163 |
Assets held for sale | 0 | 1,016 |
Total current assets | 37,113 | 47,163 |
Non-current assets | ||
Deferred tax assets | 1,457 | 1,398 |
Financial investments | 4,476 | 4,277 |
Other long-term receivables | 742 | 688 |
Investment property | 268 | 292 |
Property, plant and equipment | 42,376 | 34,368 |
Intangible assets | 38,612 | 38,045 |
Total non-current assets | 87,931 | 79,068 |
TOTAL ASSETS | 125,044 | 126,231 |
LIABILITIES AND EQUITY | ||
Current liabilities | ||
Borrowings | 192 | 253 |
Trade and other payables | 14,691 | 13,121 |
Income tax payable | 411 | 741 |
Provisions | 1,441 | 1,424 |
Total current liabilities | 16,735 | 15,539 |
Non-current liabilities | ||
Borrowings | 1,178 | 1,216 |
Deferred tax liability | 330 | 272 |
Total non-current liabilities | 1,508 | 1,488 |
TOTAL LIABILITIES | 18,243 | 17,027 |
EQUITY | ||
Share capital | 60,716 | 60,716 |
Share premium | 258 | 258 |
Statutory reserve capital | 3,574 | 2,495 |
Other reserves | 165 | 0 |
Translation reserves | -1,173 | -1,420 |
Retained earnings | 37,360 | 41,816 |
Total equity attributable to equity holders of the parent | 100,900 | 103,865 |
Non-controlling interest | 5,901 | 5,339 |
TOTAL EQUITY | 106,801 | 109,204 |
TOTAL LIABILITIES AND EQUITY | 125,044 | 126,231 |
Consolidated statement of comprehensive income
(in EUR thousands) | Q2 2015 | Q2 2014 | H1 2015 | H1 2014 |
Income from gaming transactions | 39,165 | 34,977 | 75,888 | 67,696 |
Revenue | 2,432 | 2,208 | 4,822 | 4,296 |
Other income | 190 | 149 | 275 | 251 |
Total revenue and income | 41,787 | 37,334 | 80,985 | 72,243 |
Cost of materials, goods and services | -884 | -794 | -1,776 | -1,517 |
Other operating expenses | -19,850 | -17,926 | -38,421 | -34,453 |
Staff costs | -11,409 | -9,796 | -22,189 | -19,290 |
Depreciation, amortisation and impairment | -2,095 | -2,095 | -3,931 | -4,055 |
Other expenses | -57 | -153 | -186 | -284 |
Total operating expenses | -34,295 | -30,764 | -66,503 | -59,599 |
Operating profit | 7,492 | 6,570 | 14,482 | 12,644 |
Interest income | 15 | 11 | 31 | 41 |
Interest expense | -7 | -7 | -14 | -10 |
Foreign exchange losses | 15 | -4 | 15 | -6 |
Other finance income and costs | -2 | 0 | -4 | -1 |
Total finance income and costs | 21 | 0 | 28 | 24 |
Profit from operating activities | 7,513 | 6,570 | 14,510 | 12,668 |
Income tax expense | -969 | -811 | -2,148 | -1,773 |
Net profit for the period | 6,544 | 5,759 | 12,362 | 10,895 |
Attributable to equity holders of the parent company | 6,330 | 5,423 | 11,800 | 10,304 |
Attributable to non-controlling interest | 214 | 336 | 562 | 591 |
Other comprehensive income | ||||
Currency translation differences | -274 | -21 | 247 | 84 |
Total comprehensive profit for the period | 6,270 | 5,738 | 12,609 | 10,979 |
Attributable to equity holders of the parent company | 6,056 | 5,402 | 12,047 | 10,388 |
Attributable to non-controlling interest | 214 | 336 | 562 | 591 |
Basic earnings per share* | 4.2 | 3.6 | 7.8 | 6.8 |
Diluted earnings per share* | 4.2 | 3.6 | 7.8 | 6.8 |
* euro cents
Madis Jääger
CEO
Olympic Entertainment Group AS
Tel + 372 667 1250
E-mail madis.jaager@oc.eu
http://www.olympic-casino.com