Key performance indicators of the Group
| 9M 2015 | 9M 2014 | 9M 2013 | ||
| Revenues | m€ | 121.0 | 110.4 | 105.9 |
| Gaming tax | m€ | 22.3 | 21.2 | 21.4 |
| EBITDA | m€ | 29.2 | 27.1 | 28.6 |
| EBIT | m€ | 23.3 | 20.8 | 22.7 |
| Net profit | m€ | 19.6 | 17.2 | 18.3 |
| EBITDA margin | % | 24.1 | 24.5 | 27.1 |
| Operating margin | % | 19.2 | 18.8 | 21.4 |
| Net margin | % | 16.2 | 15.6 | 17.3 |
| Assets | m€ | 135.3 | 120.7 | 108.9 |
| Equity | m€ | 115.0 | 105.0 | 94.1 |
| ROE | % | 18.8 | 18.2 | 21.4 |
| ROA | % | 15.3 | 15.0 | 16.1 |
| Current ratio | times | 2.5 | 2.9 | 3.1 |
| Casinos at end of period | # | 97 | 97 | 83 |
| Casino floor area at end of period | m2 | 30,343 | 32,119 | 27,230 |
| Employees | # | 2,636 | 2,621 | 2,534 |
| Slot machines at end of period | # | 3,388 | 3,481 | 3,052 |
| Gaming tables at end of period | # | 188 | 193 | 188 |
Key developments of the Group during the 9 months of 2015:
- The Group’s consolidated sales revenues for 9 months 2015 amounted to EUR 120.6 million, up 9.6% or EUR 10.5 million y‑o‑y.
- Gaming revenues accounted for 93.9% (113.3 m€) and other revenues for 6.1% (7.3 m€) of the Group’s consolidated sales revenues for 9 months 2015. A year before the revenue split was 94.0% (103.5 m€) and 6.0% (6.6 m€), respectively.
- The Group’s consolidated EBITDA for 9 months 2015 amounted to EUR 29.2 million, a growth of 8.0% from EUR 27.1 million a year before. The Group’s consolidated operating profit increased EUR 2.5 million (+12.0%) to EUR 23.3 million.
- The Group’s consolidated net profit attributable to equity holders of the parent company for 9 months 2015 totalled EUR 19.6 million compared to EUR 17.2 million a year ago.
- 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.
- 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.
- 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.
- Group company Olympic Casino Latvia SIA signed on 24 July 2015 the agreement to acquire 100% shareholding in Latvian casino operator SIA Garkalns, which is also the 100% owner of the subsidiary SIA Post-Nevada. The purpose of the acquisition is to increase the market share in Latvia. The completion of the transaction is dependent on the ordinary conditions, including the approval from the Latvian Competition Council. On the completion of the transaction Group will own 57 casinos in Latvia.
- Group company Jackpot Game S.r.l. has acquired on 30 July 2015 business activity of operating two VLT slot casinos from the Italian VLT casino operator Pasquale Di Gaetano - Judica Concetta and sons sas. The purpose of the acquisition is to increase the market share in Italy. On the completion of the transaction OEG will own 14 VLT slot casinos in Italy.
- On 31 August 2015 Group company Kesklinna Hotelli OÜ and Swedbank AS concluded a loan agreement with the loan limit of EUR 25,000,000. Loan will be used for financing construction of the Hilton Tallinn Park hotel.
The Group’s consolidated sales revenues by segments:
| ‘000€ | Q3 2015 | Q3 2014 | Change | 9M 2015 | 9M 2014 | Change |
| Estonia | 8,804 | 8,005 | 10.0% | 26,216 | 24,252 | 8.1% |
| Latvia | 14,598 | 12,874 | 13.4% | 40,651 | 34,556 | 17.6% |
| Lithuania | 5,190 | 5,623 | -7.7% | 15,979 | 16,328 | -2.1% |
| Poland | 4,745 | 5,269 | -9.9% | 18,084 | 17,462 | 3.6% |
| Slovakia | 3,921 | 3,914 | 0.2% | 11,726 | 11,650 | 0.7% |
| Belarus | 169 | 483 | -65.0% | 656 | 1,449 | -54.7% |
| Italy | 2,506 | 1,934 | 29.6% | 7,331 | 4,397 | 66.7% |
| Total | 39,933 | 38,102 | 4.8% | 120,643 | 110,094 | 9.6% |
Number of casinos by segment:
| 30 September 2015 | 30 September 2014 | |
| Estonia | 20 | 18 |
| Latvia | 37 | 37 |
| Lithuania | 18 | 15 |
| Poland | 1 | 2 |
| Slovakia | 7 | 7 |
| Belarus | 2 | 6 |
| Italy | 12 | 12 |
| Total | 97 | 97 |
Overview by markets
Estonia
The sales revenues of Estonian segment for 9 months 2015 amounted to EUR 26.2 million (+1.9 m€, +8.1%), EBITDA to EUR 4.6 million (-1.3 m€, -22.6%) and operating profit to EUR 3.1 million (-1.5 m€, -32.2%). Gaming revenue increased 7.7% y-o-y amounting to EUR 25.0 million.
At the end of September 2015, there were 20 Olympic casinos with 817 slot machines and 20 gaming tables operating in Estonia. As at 30 September 2015, the Estonian operations employed 507 people.
Latvia
The sales revenues of Latvian segment for 9 months 2015 amounted to EUR 40.7 million (+6.1 m€, +17.6%), EBITDA to EUR 19.4 million (+5.0 m€, +34.8%) and operating profit to EUR 17.2 million (+5.3 m€, +44.1%). Gaming revenue increased 17.9% y‑o‑y amounting to EUR 37.4 million.
At the end of September 2015, there were 37 Olympic casinos with 1,066 slot machines and 19 gaming tables operating in Latvia. As at 30 September 2015, the Latvian operations employed 695 people.
Lithuania
The sales revenues of Lithuanian segment for 9 months 2015 amounted to EUR 16.0 million (-0.3 m€, -2.1%), EBITDA to EUR 2.4 million (-1.0 m€, -30.0%) and operating profit to EUR 1.6 million (-1.0 m€, -37.5%). Gaming revenue decreased 2.0% y-o-y amounting to EUR 15.1 million.
At the end of September 2015, there were 18 Olympic casinos with 557 slot machines and 64 gaming tables operating in Lithuania. As at 30 September 2015, the Lithuanian operations employed 726 people.
Poland
The sales revenues of Polish segment for 9 months 2015 amounted to EUR 18.1 million (+0.6 m€, +3.6%), EBITDA to EUR 2.3 million (-0.3 m€, -12.6%) and operating profit to EUR 1.8 million (-0.3 m€, -12.7%). Gaming revenue increased 3.5% y-o-y amounting to EUR 17.8 million.
At the end of September 2015, there was 1 Olympic casino with 145 slot machines and 29 gaming tables operating in Poland. As at 30 September 2015, the Polish operations employed 254 people.
Slovakia
The sales revenues of Slovak segment for 9 months 2015 amounted to EUR 11.7 million (+0.0 m€, +0.7%), EBITDA to EUR 0.4 million (-0.5 m€, -55.2%) and operating loss to EUR -0.4 million (-0.4 m€, -1,089.4%). Gaming revenue decreased 0.1% y-o-y amounting to EUR 10.3 million.
At the end of September 2015, there were 7 Olympic casinos with 291 slot machines and 56 gaming tables operating in Slovakia. As at 30 September 2015, the Slovak operations employed 342 people.
Belarus
The sales revenues of Belarusian segment for 9 months 2015 amounted to EUR 0.7 million (-0.8 m€, -54.8%), EBITDA to EUR -0.3 million (+0.1 m€, -21.9%) and operating loss to EUR -0.3 million (+0.2 m€, -36.8%). Gaming revenue decreased 54.9% y‑o‑y amounting to EUR 0.6 million.
At the end of September 2015, there were 2 Olympic casinos with 74 slot machines operating in Belarus. As at 30 September 2015, the Belarusian operations employed 54 people.
Italy
The sales revenues of Italian segment before deducting the gaming tax of Italy for 9 months 2015 amounted to EUR 16.0 million (+6.6 m€, +70.9%), EBITDA to EUR 0.5 million (+0.3 m€, +170.3%) and operating profit to EUR 0.1 million (+0.2 m€, -210.8%).
At the end of September 2015, there were 12 VLT slot casinos with 438 slot machines operating in Italy. As at 30 September 2015, the Italian operations employed 58 people.
Financial position
As at 30 September 2015, the total assets of the Group amounted to EUR 135.3 million, up 12.1% or EUR 14.6 million compared to the same period a year ago.
Current assets totalled EUR 42.9 million or 31.7% of total assets, and non-current assets EUR 92.4 million or 68.3% of total assets. The liabilities amounted to EUR 20.3 million and equity to EUR 115.0 million. The largest liabilities included suppliers payables and advances (6.0 m€), tax liabilities (4.4 m€) and payables to employees (3.6 m€).
Investments
In 9 months 2015, the Group’s expenditures on property, plant and equipment totalled EUR 18.7 million (+4.7 m€, +33.4%), of which EUR 3.9 million was invested into new gaming equipment (-1.6 m€, -29.7%) and EUR 14.4 million (+6.5 m€, +82.5%) into construction of hotel and construction and reconstruction of casinos.
Cash flows
In 9 months 2015, the Group’s cash flows generated from operating activities amounted to EUR 25.6 million (+3.1 m€, +13.6%) and cash flows used in investing activities to EUR -15.9 million (+2.7 m€). Financing cash flows amounted to EUR ‑13.5 million (+0.6 m€). Net cash flows totalled EUR -3.8 million (+6.3 m€).
Staff
As at 30 September 2015, the Group employed 2,636 people, up by 15 y-o-y.
In 9 months 2015, total personnel expenses amounted to EUR 32.2 million (+3.7 m€, +12.9%). In 9 months 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 620 thousand (EUR 623 thousand in 9 months 2014) and EUR 111 thousand (EUR 114 thousand in 9 months 2014), respectively.
Consolidated statement of financial position
| (EUR thousands) | 30.09.2015 | 31.12.2014 |
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents | 36,373 | 40,117 |
| Financial investments | 1,045 | 1,108 |
| Receivables and prepayments | 3,652 | 3,276 |
| Prepaid income tax | 557 | 483 |
| Inventories | 1,266 | 1,163 |
| Assets held for sale | 0 | 1,016 |
| Total current assets | 42,893 | 47,163 |
| Non-current assets | ||
| Deferred tax assets | 1,438 | 1,398 |
| Financial investments | 4,481 | 4,277 |
| Other long-term receivables | 491 | 688 |
| Investment property | 268 | 292 |
| Property, plant and equipment | 47,215 | 34,368 |
| Intangible assets | 38,531 | 38,045 |
| Total non-current assets | 92,424 | 79,068 |
| TOTAL ASSETS | 135,317 | 126,231 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Borrowings | 128 | 253 |
| Trade and other payables | 14,355 | 13,121 |
| Income tax payable | 633 | 741 |
| Provisions | 1,748 | 1,424 |
| Total current liabilities | 16,864 | 15,539 |
| Non-current liabilities | ||
| Borrowings | 3,106 | 1,216 |
| Deferred tax liability | 374 | 272 |
| Total non-current liabilities | 3,480 | 1,488 |
| TOTAL LIABILITIES | 20,344 | 17,027 |
| EQUITY | ||
| Share capital | 60,716 | 60,716 |
| Share premium | 258 | 258 |
| Statutory reserve capital | 3,574 | 2,495 |
| Other reserves | 247 | 0 |
| Translation reserves | -1,202 | -1,420 |
| Retained earnings | 45,164 | 41,816 |
| Total equity attributable to equity holders of the parent | 108,757 | 103,865 |
| Non-controlling interest | 6,216 | 5,339 |
| TOTAL EQUITY | 114,973 | 109,204 |
| TOTAL LIABILITIES AND EQUITY | 135,317 | 126,231 |
Consolidated statement of comprehensive income
| (EUR thousands) | Q3 2015 | Q3 2014 | 9M 2015 | 9M 2014 |
| Income from gaming transactions | 37,431 | 35,782 | 113,319 | 103,478 |
| Revenue | 2,502 | 2,320 | 7,324 | 6,616 |
| Other income | 113 | 37 | 388 | 288 |
| Total revenue and income | 40,046 | 38,139 | 121,031 | 110,382 |
| Cost of materials, goods and services | -913 | -866 | -2,690 | -2,383 |
| Other operating expenses | -18,174 | -17,632 | -56,595 | -52,085 |
| Staff costs | -10,032 | -9,253 | -32,220 | -28,543 |
| Depreciation, amortisation and impairment | -2,024 | -2,225 | -5,955 | -6,280 |
| Other expenses | -122 | -29 | -308 | -312 |
| Total operating expenses | -31,265 | -30,005 | -97,768 | -89,603 |
| Operating profit | 8,781 | 8,134 | 23,263 | 20,779 |
| Interest income | 10 | 16 | 41 | 57 |
| Interest expense | -7 | -9 | -21 | -20 |
| Foreign exchange losses | 5 | 0 | 20 | -6 |
| Other finance income and costs | -1 | -1 | -5 | -2 |
| Total finance income and costs | 7 | 6 | 35 | 29 |
| Profit from operating activities | 8,788 | 8,140 | 23,298 | 20,808 |
| Income tax expense | -748 | -1,121 | -2,896 | -2,894 |
| Net profit for the period | 8,040 | 7,019 | 20,402 | 17,914 |
| Attributable to equity holders of the parent company | 7,804 | 6,916 | 19,604 | 17,220 |
| Attributable to non-controlling interest | 236 | 103 | 798 | 694 |
| Other comprehensive income | ||||
| Currency translation differences | -29 | 22 | 218 | 107 |
| Total comprehensive profit for the period | 8,011 | 7,041 | 20,620 | 18,021 |
| Attributable to equity holders of the parent company | 7,775 | 6,938 | 19,822 | 17,327 |
| Attributable to non-controlling interest | 236 | 103 | 798 | 694 |
| Basic earnings per share* | 5.1 | 4.6 | 12.9 | 11.3 |
| Diluted earnings per share* | 5.1 | 4.6 | 12.9 | 11.3 |
* euro cents
Madis Jääger
CEO
Olympic Entertainment Group AS
Tel + 372 667 1250
E-mail madis.jaager@oc.eu
http://www.olympic-casino.com
