OEG: consolidated unaudited results for Q2 and H1 2012
Key performance indicators of the Group
(in millions of euros)
|
|
H1 2012 |
H1 2011 |
|
Revenue |
64.1 |
61.9 |
|
EBITDA |
17.3 |
15.0 |
|
Operating profit |
11.7 |
5.7 |
|
Net profit |
10.4 |
4.4 |
|
EBITDA margin |
27.0% |
24.2% |
|
Operating margin |
18.3% |
9.3% |
|
Net margin |
16.2% |
7.2% |
|
ROE |
13.8% |
5.9% |
|
ROA |
9.8% |
4.1% |
|
Current ratio |
1.9 |
1.7 |
|
|
|
|
|
Number of casinos at year-end |
62 |
63 |
|
Casino floor area (m²) at year-end |
23,480 |
23,076 |
|
|
|
|
|
Number of slot machines at the period end |
2,487 |
2,441 |
|
Number of gaming tables at the period end |
183 |
173 |
Key developments of the Group in H1 2012:
-
The Group’s consolidated net profit totalled EUR 10.4 million. In H1 2011, the Group earned a net profit of EUR 4.4 million.
-
The efficiency of the Group’s business operations improved. In H1 2012, the Group’s income from gaming transactions and revenues totalled EUR 63.6 million, i.e. 10.0% more than compared to H1 2011. The number of casinos in operation declined by 1 year-over-year.
-
At 27 July 2012, the reduction of share capital of Olympic Entertainment Group AS on the basis adopted by resolution of the General Meeting of Shareholders held at 19 April 2012 was entered in the Commercial Register. The Company’s registered share capital was EUR 81,717,932.70 and the new size of share capital is EUR 60,531,802. The share capital is divided into 151,329,505 ordinary shares with the book value of EUR 0.40 each.
In H1 2012, the Group’s consolidated sales revenue totalled EUR 63.6 million and the revenue totalled EUR 64.1 million, which is 3.7% more than the total revenue of EUR 61.9 million earned in H1 2011. The Group’s EBITDA increased from EUR 15.0 million in H1 2011 to EUR 17.3 million in H1 2012. In H1 2012, the operating profit totalled EUR 11.7 million, in H1 2011 the operating profit totalled EUR 5.7 million.
In H1 2012, gaming operations accounted for 92.3% and other revenue 7.7% of the Group’s consolidated revenue, the respective percentages for the H1 2011 were 87.1% and 12.9%.
Total external income from gaming transactions and revenue (EUR thousands):
|
|
Q2 2012 |
Change |
Percentage of total |
Q2 2011 |
Percentage of total |
|
Estonia |
8,180 |
13.3% |
25.6% |
7,218 |
25.1% |
|
Latvia |
7,767 |
13.1% |
24.3% |
6,865 |
23.9% |
|
Lithuania |
4,466 |
2.9% |
14.0% |
4,341 |
15.1% |
|
Poland |
7,138 |
10.5% |
22.3% |
6,458 |
22.5% |
|
Slovakia |
3,504 |
14.2% |
11.0% |
3,067 |
10.7% |
|
Belarus |
885 |
13.2% |
2.8% |
782 |
2.7% |
|
Romania* |
0 |
-100.0% |
0.0% |
11 |
0.0% |
|
Total |
31,940 |
11.1% |
100.0% |
28,742 |
100.0% |
|
|
6m 2012 |
Change |
Percentage of total |
6m 2011 |
Percentage of total |
|
Estonia |
15,794 |
15.2% |
24.8% |
13,709 |
23.7% |
|
Latvia |
15,743 |
18.6% |
24.8% |
13,276 |
23.0% |
|
Lithuania |
9,360 |
6.9% |
14.7% |
8,756 |
15.1% |
|
Poland |
13,376 |
-4.3% |
21.0% |
13,981 |
24.2% |
|
Slovakia |
7,759 |
41.1% |
12.2% |
5,499 |
9.5% |
|
Belarus |
1,575 |
-5.1% |
2.5% |
1,660 |
2.9% |
|
Romania* |
0 |
-100.0% |
0.0% |
954 |
1.6% |
|
Total |
63,607 |
10.0% |
100.0% |
57,835 |
100.0% |
* Romanian income from gaming transactions and revenue were recognised until transfer of control to the new owner at 30 June 2011.
At the end of Q2 2012, the Group had 62 casinos, with the total floor area of 23,480 m². At the end of Q2 2011, the number of the Group’s casinos was 63 and total floor area was 23,076 m².
Number of casinos by segment
|
|
30.06.2012 |
30.06.2011 |
|
Estonia |
18 |
17 |
|
Latvia |
21 |
21 |
|
Lithuania |
10 |
11 |
|
Poland |
4 |
6 |
|
Slovakia |
4 |
3 |
|
Belarus |
5 |
5 |
|
Total |
62 |
63 |
In H1 2012, the Group’s consolidated operating expenses decreased by 6.6% or EUR 3.7 million as compared to the respective expenses in H1 2011. Depreciation, amortisation and impairment losses decreased the most compared to H1 2011 by EUR 3.7 million. Staff costs with social security taxes increased the most as compared to H1 2011 by EUR 1.0 million and licence fees and gaming taxes by EUR 0.4 million.
Staff costs with social security taxes made up the largest share of the Group’s operating expenses, i.e. EUR 16.0 million, followed by gaming tax expenses of EUR 13.5 million, depreciation, amortisation and impairment losses of EUR 5.6 million, rental expenses of EUR 4.7 million and marketing expenses of EUR 4.3 million.
In H1 2012, the consolidated net profit attributable to equity holders of the parent company totalled EUR 10.4 million. In H1 2011, the consolidated net profit attributable to equity holders of the parent company totalled EUR 4.4 million.
Overview by markets
Estonian segment
In H1 2012, the external revenue of the Estonian segment totalled EUR 16.1 million, of which the income from gaming transactions totalled EUR 14.3 million and other revenue and income totalled EUR 1.8 million. The external revenue of the Estonian segment increased by 2.4% compared to H1 2011. The market share of Olympic Casino Eesti AS in the Estonian gaming market was 56% based on Q2 2012 and 55% based on Q2 2011. In H1 2012, the total Estonian gaming market increased by 12.3% as compared to H1 2011.
In H1 2012, the EBITDA of the Estonian segment totalled EUR 3.8 million and the operating profit totalled EUR 2.3 million. In H1 2011, the EBITDA of the Estonian segment totalled EUR 4.3 million and the operating profit totalled EUR 2.3 million.
At the end of Q2 2012, there were 18 Olympic casinos with 739 slot machines and 21 gaming tables in operation in Estonia.
Latvian segment
In H1 2012, the external revenue of the Latvian segment totalled EUR 15.9 million, of which the income from gaming transactions totalled EUR 14.5 million and other revenue and income totalled EUR 1.4 million. The external revenue of the Latvian segment increased by 19.5% compared to H1 2011. The market share of Olympic Casino Latvia SIA in the Latvian gaming market was 21% based on Q2 2012 and 20% based on Q2 2011.
In H1 2012, the EBITDA of the Latvian segment totalled EUR 6.9 million and the operating profit totalled EUR 5.6 million. In H1 2011, the EBITDA of the Latvian segment totalled EUR 5.0 million and the operating profit totalled EUR 3.3 million.
At the end of Q2 2012, there were 21 Olympic casinos with 646 slot machines and 25 gaming tables in operation in Latvia.
Lithuanian segment
In H1 2012, the external revenue of the Lithuanian segment totalled EUR 9.4 million, of which the income from gaming transactions totalled EUR 8.8 million and other revenue and income totalled EUR 0.6 million. The external revenue of the Lithuanian segment increased by 6.6% compared to H1 2011. The market share of Olympic Casino Group Baltija UAB in the Lithuanian gaming market was 68% based on Q2 2012 and 71% based on Q2 2011.
In H1 2012, the EBITDA of the Lithuanian segment totalled EUR 2.1 million and the operating profit totalled EUR 1.3 million. In H1 2011, the EBITDA of the Lithuanian segment totalled EUR 1.9 million and the operating profit totalled EUR 0.8 million.
At the end of Q2 2012, there were 10 Olympic casinos with 350 slot machines and 52 gaming tables in operation in Lithuania.
Polish segment
In H1 2012, the external revenue of the Polish segment totalled EUR 13.5 million, of which the income from gaming transactions totalled EUR 13.2 million and other revenue and income totalled EUR 0.3 million. The external revenue of the Polish segment decreased by 15.7% compared to H1 2011.
In H1 2012, the EBITDA of the Polish segment totalled EUR 2.3 million and the operating profit totalled EUR 1.0 million. In H1 2011, the EBITDA of the Polish segment totalled EUR 3.3 million and the operating profit totalled EUR 1.2 million.
At the end of Q2 2012, there were 4 Olympic casinos with 306 slot machines and 41 gaming tables in operation in Poland.
Slovak segment
In H1 2012, the external revenue of the Slovak segment totalled EUR 7.8 million, of which the income from gaming transactions totalled EUR 7.1 million and other revenue and income totalled EUR 0.7 million. The external revenue of the Slovak segment increased by 41.1% compared to H1 2011.
In H1 2012, the EBITDA of the Slovak segment totalled EUR 1.6 million and the operating profit totalled EUR 1.0 million. In H1 2011, the EBITDA of the Slovak segment totalled EUR 1.1 million and the operating profit totalled EUR 0.6 million.
At the end of Q2 2012, there were 4 Olympic casinos with 218 slot machines and 44 gaming tables in operation in Slovakia.
Belarusian segment
In this interim financial statement, the Belarusian segment is regarded as a hyperinflationary economy that is subject to the accounting policies of IAS 29.
In H1 2012, the external revenue of the Belarusian segment totalled EUR 1.6 million, of which the income from gaming transactions totalled EUR 1.5 million and other revenue and income totalled EUR 0.1 million. The external revenue of the Belarusian segment decreased by 3.4% compared to H1 2011.
In H1 2012, the EBITDA of the Belarusian segment totalled EUR 0.6 million and the operating profit totalled EUR 0.5 million. In H1 2011, the EBITDA of the Belarusian segment totalled EUR 0.3 million and the operating loss totalled EUR 0.1 million.
At the end of Q2 2012, there were 5 Olympic casinos with 228 slot machines in operation 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 30 June 2012, the consolidated balance sheet total of the Group was EUR 109.9 million (31 December 2011: EUR 101.0 million). The balance sheet total increased by 8.8% in H1 2012.
Current assets totalled EUR 57.1 million or 52.0% of total assets, and non-current assets totalled EUR 52.8 million or 48.0% of total assets. At the balance sheet date, the liabilities totalled EUR 31.8 million and the equity totalled EUR 78.1 million. The largest liability items included payables to the shareholders from the reduction of share capital in the amount of EUR 15.2 million, borrowings of EUR 4.7 million, tax liabilities of EUR 3.9 million and payables to employees of EUR 2.9 million.
Investments
In H1 2012, the Group’s expenditures on property, plant and equipment totalled EUR 3.6 million, of which EUR 2.4 million was spent on construction and reconstruction of casinos and EUR 1.2 million on new gaming equipment.
In H1 2011, expenditures on property, plant and equipment totalled EUR 0.9 million.
Cash flows
In H1 2012, the Group’s cash flows generated from operating activities totalled EUR 14.0 million. Cash flows used in investing activities totalled EUR 5.5 million and cash flows used in financing activities totalled EUR 1.6 million. Net cash flows totalled EUR 6.9 million.
In H1 2011, the Group’s cash flows generated from operating activities totalled EUR 14.2 million. Cash flows used in investing activities totalled EUR 0.8 million and cash flows used in financing activities totalled EUR 1.6 million. Net cash flows totalled EUR 11.9 million.
Staff
At 30 June 2012, the Group employed 2,349 people (31 December 2011: 2,336): 530 in Estonia, 492 in Latvia, 613 in Lithuania, 389 in Poland, 222 in Slovakia and 103 in Belarus.
In H1 2012, employee wages and salaries including social security taxes totalled EUR 16.0 million (H1 2011: EUR 15.1 million). In H1 2012, 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 0.47 million (H1 2011: EUR 0.36 million) and EUR 0.08 million (H1 2011: EUR 0.08 million), respectively.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
|
|
30.06.2012 |
31.12.2011 |
|
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
40,308 |
33,413 |
|
Financial investments |
12,513 |
9,508 |
|
Receivables and prepayments |
2,989 |
2,606 |
|
Prepaid income tax |
263 |
397 |
|
Inventories |
1,023 |
909 |
|
Total current assets |
57,096 |
46,833 |
|
|
|
|
|
Non-current assets |
|
|
|
Deferred tax assets |
1,136 |
1,111 |
|
Financial investments |
2,944 |
2,937 |
|
Other long-term receivables |
685 |
712 |
|
Investment property |
1,800 |
1,795 |
|
Property, plant and equipment |
18,075 |
19,754 |
|
Intangible assets |
28,126 |
27,822 |
|
Total non-current assets |
52,766 |
54,131 |
|
|
|
|
|
TOTAL ASSETS |
109,862 |
100,964 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities |
|
|
|
Borrowings |
3,111 |
3,113 |
|
Trade and other payables |
25,310 |
9,870 |
|
Income tax payable |
464 |
1,215 |
|
Provisions |
1,309 |
1,881 |
|
Total current liabilities |
30,194 |
16,079 |
|
|
|
|
|
Non-current liabilities |
|
|
|
Deferred tax liability |
23 |
90 |
|
Borrowings |
1,582 |
3,136 |
|
Total non-current liabilities |
1,605 |
3,226 |
|
|
|
|
|
TOTAL LIABILITIES |
31,799 |
19,305 |
|
|
|
|
|
EQUITY |
|
|
|
Share capital |
60,532 |
81,718 |
|
Share premium |
0 |
14,535 |
|
Statutory reserve capital |
0 |
2,470 |
|
Other reserves |
94 |
53 |
|
Translation reserves |
-1,079 |
-1,776 |
|
Retained earnings / accumulated losses |
13,487 |
-19,930 |
|
Total equity attributable to equity holders of the parent |
73,034 |
77,070 |
|
Non-controlling interest |
5,029 |
4,589 |
|
TOTAL EQUITY |
78,063 |
81,659 |
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
109,862 |
100,964 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
|
Q2 2012 |
Q2 2011 |
6m 2012 |
6m 2011 |
|
Continuing operations |
|
|
|
|
|
Income from gaming transactions |
29,625 |
26,701 |
59,221 |
53,050 |
|
Revenue |
2,315 |
2,030 |
4,386 |
3,831 |
|
Other income |
39 |
1,990 |
523 |
4,011 |
|
Total revenue and income |
31,979 |
30,721 |
64,130 |
60,892 |
|
|
|
|
|
|
|
Cost of materials, goods and services |
-692 |
-671 |
-1,356 |
-1,306 |
|
Other operating expenses |
-14,652 |
-14,088 |
-29,297 |
-28,267 |
|
Staff costs |
-7,996 |
-7,217 |
-16,032 |
-14,373 |
|
Depreciation, amortisation and impairment |
-2,667 |
-3,605 |
-5,567 |
-7,791 |
|
Other expenses |
-48 |
-660 |
-157 |
-986 |
|
Total operating expenses |
-26,055 |
-26,241 |
-52,409 |
-52,723 |
|
|
|
|
|
|
|
Operating profit |
5,924 |
4,480 |
11,721 |
8,169 |
|
|
|
|
|
|
|
Interest income |
80 |
78 |
154 |
153 |
|
Interest expense |
-48 |
-117 |
-103 |
-244 |
|
Foreign exchange gains (losses) |
-31 |
98 |
-45 |
114 |
|
Other finance income and costs |
237 |
-3 |
523 |
-5 |
|
Total finance income and costs |
238 |
56 |
529 |
18 |
|
|
|
|
|
|
|
Profit from operating activities |
6,162 |
4,536 |
12,250 |
8,187 |
|
|
|
|
|
|
|
Income tax expense |
-737 |
-604 |
-1,441 |
-957 |
|
Net profit for the period from continuing operations |
5,425 |
3,932 |
10,809 |
7,230 |
|
|
|
|
|
|
|
Net profit (loss) for the period from discontinued operations |
0 |
634 |
0 |
-2,462 |
|
|
|
|
|
|
|
Net profit for the period |
5,425 |
4,566 |
10,809 |
4,768 |
|
Attributable to equity holders of the parent company |
5,236 |
4,245 |
10,359 |
4,427 |
|
Attributable to non-controlling interest |
189 |
321 |
450 |
341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
Currency translation differences |
|
|
|
|
|
Continuing operations |
0 |
-291 |
0 |
-187 |
|
Discontinued operations |
-171 |
-388 |
697 |
-718 |
|
Total comprehensive profit for the period |
5,254 |
3,887 |
11,506 |
3,863 |
|
Attributable to equity holders of the parent company |
5,065 |
3,566 |
11,056 |
3,522 |
|
Attributable to non-controlling interest |
189 |
321 |
450 |
341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share* |
3.5 |
2.8 |
6.8 |
2.9 |
|
From continuing operations |
3.5 |
2.4 |
6.8 |
4.5 |
|
From discontinuing operations |
0.0 |
0.4 |
0.0 |
-1.6 |
|
|
|
|
|
|
|
Diluted earnings per share* |
3.5 |
2.8 |
6.8 |
2.9 |
|
From continuing operations |
3.5 |
2.4 |
6.8 |
4.5 |
|
From discontinuing operations |
0.0 |
0.4 |
0.0 |
-1.6 |
* 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
|