OEG: consolidated unaudited results for Q4 and 12-month period of 2011
Key performance indicators
(in millions of euros)
|
|
2011 |
2010 |
|
Revenue |
127.3 |
112.5 |
|
EBITDA |
32.0 |
21.1 |
|
Operating profit |
16.4 |
3.1 |
|
Net profit |
13.8 |
1.1 |
|
EBITDA margin |
25.1% |
18.8% |
|
Operating margin |
12.9% |
2.8% |
|
Net margin |
10.8% |
1.0% |
|
Equity ratio |
80.9% |
78.7% |
|
|
|
|
|
Number of casinos at period-end |
61 |
66 |
|
Casino area (m2) at period-end |
24,014 |
25,802 |
|
|
|
|
|
Number of slot machines at period-end |
2,471 |
2,519 |
|
Number of gaming tables at period-end |
180 |
182 |
Underlying formulas:
o EBITDA = earnings before financial expenses, taxes, depreciation and amortisation and impairment losses
o Operating profit = profit before financial expenses and taxes
o Net profit = net profit for the period less non-controlling interests
o EBITDA margin = EBITDA / revenue
o Operating margin = operating profit / revenue
o Net margin = net profit / revenue
o Equity ratio = equity / total assets
Overview of the Group’s key events and developments in the year of 2011:
-
In 2011 the consolidated net profit after corporate income tax for the Group totalled 13.8 million euros. In 2010, the Group incurred a net profit of 1.1 million euros.
-
The efficiency of the Group’s business operations improved. In 2011, the Group’s income from gaming transactions and revenues totalled 122.4 million euros, i.e. 9.8% more than for 2010. The number of casinos in operation declined by 5 casinos or 7.6% period-over-period.
-
As planned, the Group has increased its market share. At the end of 2011, the Group’s market share was 54% in Estonia, 21% in Latvia and 71% in Lithuania. At the end of 2010, its market share was 53% in Estonia, 20% in Latvia and 68% in Lithuania.
-
In December the fourth Olympic Casino was opened in Slovakia in the most modern and biggest shopping mall in the city centre of Košice.
-
Olympic Entertainment Group AS signed share purchase agreement on 30 April 2011 with an Israeli entrepreneur for selling all the shares in Romanian subsidiaries Olympic Casino Bucharest S.R.L, Muntenia Food and Beverage S.R.L. and Olympic Exchange S.R.L. As of 30 June 2011 shares of Romanian subsidiaries have been registered to the buyer.
-
On 27 May 2011 and 18 August 2011, the decrease of share capital and the conversion of share capital of Olympic Entertainment Group AS into euros were entered into the Commercial Register based on the resolutions adopted by the General Meeting of Shareholders of the Company held on 5 May 2011. The new amount of the registered share capital of the Company was 90,797,703 euros, which was divided into 151,329,505 ordinary shares with the nominal value of 0.6 euros. According to the resolutions of the General Meeting of Shareholders held on 5 May 2011, the share capital of the Company was reduced by 9,079,770.30 euros from 90,797,703 euros to 81,717,932.70 euros by reducing the calculated value of the shares. The referred resolution entered into force on the day following to the day, when the reduction of the share capital in relation to the conversion into euros and the amendment of the Articles of Association were entered into the Commercial Register, (i.e. on 28 May 2011) pursuant to the resolutions of the General Meeting.
The Group’s consolidated sales revenue for the year of 2011 totalled 122.4 million euros and the revenue totalled 127.3 million euros which is 13.2% more than the total revenue of 112.5 million euros earned within the year of 2010. The Group’s EBITDA increased from 21.1 million euros in 2010 to 32.0 million euros in 2011. In 2011, the operating profit totalled 16.4 million euros; in 2010 the operating profit totalled 3.1 million euros.
In 2011, gaming operations accounted for 89.5% and other revenue 10.5% of the Group’s consolidated revenue, the respective percentages for 2010 were 92.3% and 7.7%.
Total external income from gaming transactions and revenue
|
(thousands of euros) |
Q4 2011 |
Change |
Percentage |
Q4 2010 |
Percentage |
|
Estonia |
8,851 |
19.7% |
26.3% |
7,396 |
24.2% |
|
Latvia |
8,706 |
20.6% |
25.9% |
7,220 |
23.7% |
|
Lithuania |
5,363 |
22.6% |
15.9% |
4,376 |
14.4% |
|
Poland |
7,388 |
-6.1% |
22.0% |
7,867 |
25.8% |
|
Slovakia |
2,602 |
2.2% |
7.7% |
2,546 |
8.3% |
|
Belarus |
741 |
-22.4% |
2.2% |
955 |
3.1% |
|
Romania* |
0 |
-100.0% |
0% |
160 |
0.5% |
|
Total |
33,651 |
10.3% |
100.0% |
30,520 |
100.0% |
|
(thousands of euros) |
2011 |
Change |
Percentage |
2010 |
Percentage |
|
Estonia |
30,784 |
12.3% |
25.1% |
27,421 |
24.6% |
|
Latvia |
29,810 |
21.7% |
24.3% |
24,498 |
22.0% |
|
Lithuania |
19,277 |
12.2% |
15.8% |
17,180 |
15.4% |
|
Poland |
27,566 |
-0.8% |
22.5% |
27,783 |
24.9% |
|
Slovakia |
10,838 |
22.0% |
8.9% |
8,886 |
8.0% |
|
Belarus |
3,200 |
0.7% |
2.6% |
3,178 |
2.8% |
|
Romania* |
954 |
-62.3% |
0.8% |
2,529 |
2.3% |
|
Total |
122,429 |
9.8% |
100.0% |
111,475 |
100.0% |
* Romanian income from gaming transactions and revenue was recognised until the control was transferred to the new owner as of 30.06.2011.
At the end of 2011, the Group had 61 casinos, with the total floor area of 24,014 m². At the end of 2010, the number of the Group’s casinos was 66, and their total floor area was 25,802 m².
Number of casinos by segment
|
|
31.12.2011 |
31.12.2010 |
|
Estonia |
17 |
17 |
|
Latvia |
21 |
21 |
|
Lithuania |
10 |
11 |
|
Poland |
4 |
7 |
|
Slovakia |
4 |
3 |
|
Belarus |
5 |
5 |
|
Romania |
0 |
2 |
|
Total |
61 |
66 |
The Group’s consolidated operating expenses for the year of 2011 increased by 1.4% or 1.5 million euros as compared to the respective expenses in 2010. Staff costs increased the most as compared to 2010 of 0.5 million euros, maintenance costs of gaming areas increased by 0.5 million euros and the cost of operating licences and gaming taxes increased by 0.3 million euros.
Staff costs with social security taxes made up the largest share of the Group’s operating expenses, i.e. 30.5 million euros, followed by gaming tax expenses of 25.7 million euros, depreciation, amortisation and impairment of 15.7 million euros, rental expenses of 9.7 million euros and marketing expenses of 9.3 million euros.
In 2011, the consolidated net profit after tax totalled 13.8 million euros. In 2010, the consolidated net profit after tax totalled 1.1 million euros.
Overview by markets
Estonian segment
External revenue of the Estonian segment for the year of 2011 totalled 32.8 million euros, of which the income from gaming transactions 27.9 million euros and other income 4.9 million euros. External revenue of the Estonian segment increased by 18.5% compared to 2010. The market share of Olympic Casino Eesti AS on the Estonian gaming market was 54% at the end of 2011. At the end of 2010, the market share of Olympic Casino Eesti AS was 53%. Total increase in the gaming market in Estonia for the year of 2011 was 6.5% compared to last year.
The EBITDA of the Estonian segment for the year of 2011 totalled 7.1 million euros and the operating profit totalled 3.5 million euros. The EBITDA of the Estonian segment for 2010 totalled 5.4 million euros and the operating profit totalled 0.9 million euros.
At the end of 2011, there were 17 Olympic casinos with 698 slot machines and 20 gaming tables operating in Estonia.
Latvian segment
The external revenue of the Latvian segment for the year of 2011 totalled 29.8 million euros, of which the income from gaming transactions 27.3 million euros and other income 2.5 million euros. External revenue of the Latvian segment increased by 20.2% compared to 2010. The market share of Olympic Casino Latvia SIA on the Latvian gaming market was 21% at the end of 2011. At the end of 2010, the market share of Olympic Casino Latvia SIA was 20%. Total increase in the gaming market in Latvia for the year of 2011 was 16.1% compared to last year.
The EBITDA of the Latvian segment for the year of 2011 totalled 12.7 million euros and the operating profit totalled 9.5 million euros. The EBITDA of the Latvian segment for 2010 totalled 9.0 million euros and the operating profit totalled 4.9 million euros.
At the end of 2011, there were 21 Olympic casinos with 646 slot machines and 24 gaming tables operating in Latvia.
Lithuanian segment
The external revenue of the Lithuanian segment for the year of 2011 totalled 19.3 million euros, of which the income from gaming transactions 17.9 million euros and other income 1.4 million euros. External revenue of the Lithuanian segment increased by 12.5% compared to last year. The market share of Olympic Casino Group Baltija UAB on the Lithuanian gaming market was 71% at the end of 2011. At the end of 2010, the market share of Olympic Casino Group Baltija UAB was 68%. Total increase in the gaming market in Lithuania for the year of 2011 was 7.3% compared to last year.
The EBITDA of the Lithuanian segment for the year of 2011 totalled 4.7 million euros and the operating profit totalled 2.5 million euros. The EBITDA of the Lithuanian segment for 2010 totalled 3.2 million euros and the operating profit totalled 0.9 million euros.
At the end of 2011, there were 10 Olympic casinos with 350 slot machines and 53 gaming tables operating in Lithuania.
Polish segment
The external revenue of the Polish segment for the year of 2011 totalled 30.3 million euros, of which the income from gaming transactions 27.1 million euros and other income 3.2 million euros. External revenue of the Polish segment increased by 8.6% compared to last year.
The EBITDA of the Polish segment for the year of 2011 totalled 6.2 million euros and the operating profit totalled 2.7 million euros. The EBITDA of the Polish segment for 2010 totalled 2.7 million euros and the operating loss totalled 1.8 million euros.
At the end of 2011, there were 4 Olympic casinos with 339 slot machines and 41 gaming tables operating in Poland.
Slovak segment
The external revenue of the Slovak segment for the year of 2011 totalled 10.8 million euros, of which the income from gaming transactions 9.9 million euros and other income 0.9 million euros. External revenue of the Slovak segment increased by 20% compared to last year.
The EBITDA of the Slovak segment for the year of 2011 totalled 1.6 million euros and the operating profit totalled 0.6 million euros. The EBITDA of the Slovak segment for 2010 totalled 1.6 million euros and the operating profit totalled 0.8 million euros.
At the end of 2011, there were 4 Olympic casinos with 205 slot machines and 42 gaming tables operating in Slovakia.
Belarusian segment
In the current interim financial statements the Belarusian segment is recognised as an hyperinflationary economy and applying the IAS 29 accounting principles.
The external revenue of the Belarusian segment for the year of 2011 totalled 3.2 million euros, of which the income from gaming transactions 3.0 million euros and other income 0.2 million euros. External revenue of the Belarusian segment stayed at the same level compared to last year.
The EBITDA of the Belarusian segment for the year of 2011 totalled 0.7 million euros and the operating profit totalled 0.1 million euros. The EBITDA of the Belarusian segment for 2010 totalled 0.9 million euros and the operating profit totalled 0.0 million euros.
At the end of 2011, there were 5 Olympic casinos with 233 slot machines operating in Belarus.
Romanian segment
Olympic Entertainment Group AS signed share purchase agreement on 30 April 2011 with an Israeli entrepreneur for selling all the shares in Romanian subsidiaries Olympic Casino Bucharest S.R.L, Muntenia Food and Beverage S.R.L. and Olympic Exchange S.R.L. As of 30 June 2011 shares of Romanian subsidiaries have been registered to the buyer.
Financial position
At 31 December 2011, the consolidated balance sheet total of the Group was 101.0 million euros (31 December 2010: 107.7 million euros). The balance sheet total decreased by 6.2% in 2011.
Current assets accounted for 46.8 million euros or 46.4% of total assets and non-current assets for 54.1 million euros or 53.6% of total assets. At the balance sheet date, consolidated liabilities totalled 19.3 million euros and the consolidated equity amounted to 81.7 million euros. The largest liability items included borrowings of 6.2 million euros, tax liabilities of 4.4 million euros and payables to employees of 2.9 million euros.
Investments
The Group’s expenditures on property, plant and equipment for 2011 totalled 3.8 million euros, of which 2.1 million euros was spent on new gaming equipment, 1.6 million euros was spent on construction and reconstruction of casinos and 0.1 million euros was spent on other property, plant and equipment.
Total expenditures on property, plant and equipment and intangible assets for 2010 totalled 4.4 million euros.
Cash flows
The Group’s cash flows generated from operating activities for 2011 totalled 33.9 million euros. Cash flows used in investing activities totalled 11.5 million euros and cash flows used in financing activities totalled 18.1 million euros. Net cash flows totalled 4.2 million euros.
The Group’s cash flows generated from operating activities for 2010 totalled 20.1 million euros. Cash flows used in investing activities totalled 0.3 million euros and cash flows used in financing activities totalled 9.3 million euros. Net cash flows totalled 10.5 million euros.
Staff
At 31 December 2011, the Group employed 2,336 people (31 December 2010: 2,397): 525 in Estonia, 484 in Latvia, 607 in Lithuania, 391 in Poland, 214 in Slovakia and 115 in Belarus.
Employee wages and salaries including social security taxes in the Group amounted to 30.5 million euros (2010: 30.0 million euros). The remuneration and benefits of all the members of the Group’s Management Board including social security taxes for 2011 totalled 0.56 million euros (2010: 0.52 million euros) and all the members of the Group’s Supervisory Board totalled 0.16 million euros (2010: 0.16 million euros).
Consolidated statement of financial position
|
|
31.12.2011 |
31.12.2010 |
|
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
33,413 |
28,960 |
|
Financial investments |
9,508 |
3,937 |
|
Receivables and prepayments |
2,606 |
4,959 |
|
Prepaid income tax |
397 |
734 |
|
Inventories |
909 |
1,416 |
|
Non-current assets held for sale |
0 |
1,105 |
|
Total current assets |
46,833 |
41,111 |
|
|
|
|
|
Non-current assets |
|
|
|
Deferred tax assets |
1,111 |
1,098 |
|
Financial investments |
2,937 |
927 |
|
Other long-term receivables |
712 |
949 |
|
Investment property |
1,795 |
1,414 |
|
Property, plant and equipment |
19,754 |
33,135 |
|
Intangible assets |
27,822 |
29,062 |
|
Total non-current assets |
54,131 |
66,585 |
|
|
|
|
|
TOTAL ASSETS |
100,964 |
107,696 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities |
|
|
|
Borrowings |
3,113 |
3,109 |
|
Trade and other payables |
9,870 |
10,782 |
|
Income tax payable |
1,215 |
833 |
|
Provisions |
1,881 |
1,694 |
|
Total current liabilities |
16,079 |
16,418 |
|
|
|
|
|
Non-current liabilities |
|
|
|
Deferred tax liability |
90 |
313 |
|
Borrowings |
3,136 |
6,231 |
|
Total non-current liabilities |
3,226 |
6,544 |
|
|
|
|
|
TOTAL LIABILITIES |
19,305 |
22,962 |
|
|
|
|
|
EQUITY |
|
|
|
Share capital |
81,718 |
96,717 |
|
Share premium |
14,535 |
14,535 |
|
Statutory reserve capital |
2,470 |
2,413 |
|
Other reserves |
53 |
0 |
|
Translation reserves |
-1,776 |
740 |
|
Accumulated losses |
-19,930 |
-33,703 |
|
Total equity attributable to equity holders of the parent |
77,070 |
80,702 |
|
Non-controlling interest |
4,589 |
4,032 |
|
TOTAL EQUITY |
81,659 |
84,734 |
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
100,964 |
107,696 |
Consolidated statement of financial position
|
|
Q4 2011 |
Q4 2010 |
2011 |
2010 |
|
Continuing operations |
|
|
|
|
|
Income from gaming transactions |
31,359 |
28,446 |
113,070 |
102,008 |
|
Revenue |
2,292 |
1,914 |
8,405 |
6,938 |
|
Other income |
449 |
451 |
4,892 |
910 |
|
Total revenue and income |
34,100 |
30,811 |
126,367 |
109,856 |
|
|
|
|
|
|
|
Cost of materials, goods and services |
-786 |
-721 |
-2,843 |
-2,424 |
|
Other operating expenses |
-15,018 |
-15,172 |
-56,911 |
-55,473 |
|
Staff costs |
-8,094 |
-8,034 |
-29,812 |
-28,884 |
|
Depreciation, amortisation and impairment |
-3,250 |
-4,321 |
-14,821 |
-17,068 |
|
Change in fair value of investment property |
166 |
-36 |
166 |
-36 |
|
Other expenses |
-2,197 |
-69 |
-3,861 |
-233 |
|
Total operating expenses |
-29,179 |
-28,353 |
-107,542 |
-104,118 |
|
|
|
|
|
|
|
Operating profit |
4,921 |
2,458 |
18,825 |
5,738 |
|
|
|
|
|
|
|
Interest income |
79 |
106 |
359 |
300 |
|
Interest expense |
-83 |
-140 |
-435 |
-694 |
|
Foreign exchange gains (losses) |
-55 |
37 |
107 |
22 |
|
Other finance income and costs |
108 |
-6 |
480 |
-34 |
|
Total finance income and costs |
49 |
-3 |
511 |
-406 |
|
|
|
|
|
|
|
Profit from operating activities |
4,970 |
2,455 |
19,336 |
5,332 |
|
|
|
|
|
|
|
Income tax expense |
-905 |
-1,117 |
-2,487 |
-1,536 |
|
Net profit for the period from continuing operations |
4,065 |
1,338 |
16,849 |
3,796 |
|
|
|
|
|
|
|
Net loss for the period from discontinued operations |
0 |
-1,429 |
-2,462 |
-2,697 |
|
|
|
|
|
|
|
Net profit (-loss) for the period |
4,065 |
-91 |
14,387 |
1,099 |
|
Attributable to equity holders of the parent company |
3,796 |
43 |
13,830 |
1,143 |
|
Attributable to non-controlling interest |
269 |
-134 |
557 |
-44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
Currency translation differences |
-30 |
219 |
-2,516 |
715 |
|
Total comprehensive profit for the period |
4,035 |
128 |
11,871 |
1,814 |
|
Attributable to equity holders of the parent company |
3,766 |
262 |
11,314 |
1,858 |
|
Attributable to non-controlling interest |
269 |
-134 |
557 |
-44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss) per share* |
2.5 |
0.0 |
9.1 |
0.7 |
|
From continuing operations |
2.5 |
0.1 |
10.7 |
2.5 |
|
From discontinuing operations |
0.0 |
-0.1 |
-1.6 |
-1.8 |
|
|
|
|
|
|
|
Diluted earnings (loss) per share* |
2.5 |
0.0 |
9.1 |
0.7 |
|
From continuing operations |
2.5 |
0.1 |
10.7 |
2.5 |
|
From discontinuing operations |
0.0 |
-0.1 |
-1.6 |
-1.8 |
* euro cents
For further information, please contact:
Madis Jääger
CEO
Olympic Entertainment Group AS
Tel + 372 667 1250
E-mail madis.jaager@oc.eu
http://www.olympic-casino.com
|