OEG: consolidated unaudited results for Q4 and 12m 2012
Key performance indicators of the Group
(in millions of euros)
|
|
12 m 2012 |
12 m 2011 |
12 m 2010 |
|
Revenue |
135.9 |
127.3 |
112.5 |
|
EBITDA |
38.7 |
32.0 |
21.1 |
|
Operating profit |
28.4 |
16.4 |
3.1 |
|
Net profit |
24.2 |
13.8 |
1.1 |
|
EBITDA margin |
28.5% |
25.1% |
18.8% |
|
Operating margin |
20.9% |
12.9% |
2.8% |
|
Net margin |
17.8% |
10.9% |
1.0% |
|
ROE |
29.4% |
17.5% |
1.4% |
|
ROA |
23.0% |
13.3% |
1.0% |
|
Current ratio |
3.5 |
2.9 |
2.5 |
|
|
|
|
|
|
Number of casinos at year-end |
63 |
61 |
66 |
|
Casino floor area (m²) at year-end |
24,030 |
24,014 |
25,802 |
|
|
|
|
|
|
Number of slot machines at the period end |
2,594 |
2,471 |
2,519 |
|
Number of gaming tables at the period end |
178 |
180 |
182 |
Key developments of the Group during the 12-month period of 2012:
-
The Group’s consolidated net profit totalled EUR 24.2 million. During the 12-month period of 2011, the Group earned a net profit of EUR 13.8 million.
-
The efficiency of the Group’s business operations improved. During the 12-month period of 2012, the Group’s income from gaming transactions and revenues totalled EUR 134.7 million, i.e. 10.0% more than compared to the 12‑month period of 2011. The number of casinos in operation increased by 2 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.
-
Olympic Entertainment Group AS and the Italian company GHolding agreed on 2 August 2012 to jointly set up and operate medium-sized VLT slot casinos in Italy. Both parties own half of the operating company The Box S.r.l.
-
The Group company The Box S.r.l. signed the agreement on 24 October 2012, where it acquired the Jackpot Game S.r.l in Italy, which operates 2 VLT slot casinos.
During 12-month period of 2012, the Group’s consolidated sales revenue totalled EUR 134.7 million and the revenue totalled EUR 135.9 million, which is 6.8% more than the total revenue of EUR 127.3 million earned during the 12-month period of 2011. The Group’s EBITDA increased from EUR 32.0 million during the 12-month period of 2011 to EUR 38.7 million this year. During the 12-month period of 2012 the operating profit totalled EUR 28.4 million, last year the operating profit totalled EUR 16.4 million.
During the 12-month period of 2012, gaming operations accounted for 92.3% and other revenue 7.7% of the Group’s consolidated revenue, the respective percentages for the 12-month period of 2011 were 89.5% and 10.5%.
Total external income from gaming transactions and revenue (EUR thousands):
|
|
Q4 2012 |
Change |
Percentage of total |
Q4 2011 |
Percentage of total |
|
Estonia |
9,506 |
7.4% |
25.5% |
8,851 |
26.3% |
|
Latvia |
8,900 |
2.2% |
23.9% |
8,706 |
25.9% |
|
Lithuania |
5,624 |
4.9% |
15.1% |
5,363 |
15.9% |
|
Poland |
7,395 |
0.1% |
19.8% |
7,388 |
22.0% |
|
Slovakia |
4,188 |
61.0% |
11.2% |
2,602 |
7.7% |
|
Belarus |
920 |
24.2% |
2.5% |
741 |
2.2% |
|
Italy |
730 |
- |
2.0% |
0 |
0.0% |
|
Romania* |
0 |
- |
0.0% |
0 |
0.0% |
|
Total |
37,263 |
10.7% |
100.0% |
33,651 |
100.0% |
|
|
2012 |
Change |
Percentage of total |
2011 |
Percentage of total |
|
Estonia |
34,641 |
12.5% |
25.7% |
30,784 |
25.1% |
|
Latvia |
33,545 |
12.5% |
24.9% |
29,810 |
24.3% |
|
Lithuania |
20,007 |
3.8% |
14.9% |
19,277 |
15.7% |
|
Poland |
27,207 |
-1.3% |
20.2% |
27,566 |
22.5% |
|
Slovakia |
15,190 |
40.2% |
11.3% |
10,838 |
8.9% |
|
Belarus |
3,401 |
6.3% |
2.5% |
3,200 |
2.6% |
|
Italy |
730 |
- |
0.5% |
0 |
0.0% |
|
Romania* |
0 |
- |
0.0% |
954 |
0.8% |
|
Total |
134,721 |
10.0% |
100.0% |
122,429 |
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 Q4 2012, the Group had 63 casinos, with the total floor area of 24,030 m². At the end of Q4 2011, the number of the Group’s casinos was 61 and total floor area was 24,014 m².
Number of casinos by segment
|
|
31.12.2012 |
31.12.2011 |
|
Estonia |
18 |
17 |
|
Latvia |
21 |
21 |
|
Lithuania |
10 |
10 |
|
Poland |
3 |
4 |
|
Slovakia |
4 |
4 |
|
Belarus |
5 |
5 |
|
Italy |
2 |
- |
|
Total |
63 |
61 |
During the 12-month period of 2012, the Group’s consolidated operating expenses decreased by 3.1% or EUR 3.4 million as compared to the expenses during 12-month period in 2011. Depreciation, amortisation and impairment losses decreased the most compared to the 12-month period in 2011 by EUR 5.3 million. Staff costs with social security taxes increased the most as compared to 12-month period of 2011 by EUR 2.5 million and licence fees and gaming taxes by EUR 1.7 million.
Staff costs with social security taxes made up the largest share of the Group’s operating expenses, i.e. EUR 33.0 million, followed by gaming tax expenses of EUR 27.5 million, depreciation, amortisation and impairment losses of EUR 10.4 million, rental expenses of EUR 9.5 million and marketing expenses of EUR 9.1 million.
During the 12-month period in 2012, the consolidated net profit attributable to equity holders of the parent company totalled EUR 24.2 million. During 12-month period in 2011, the consolidated net profit attributable to equity holders of the parent company totalled EUR 13.8 million.
Overview by markets
Estonian segment
During the 12-month period in 2012, the external revenue of the Estonian segment totalled EUR 35.4 million, of which the income from gaming transactions totalled EUR 31.5 million and other revenue and income totalled EUR 3.9 million. The external revenue of the Estonian segment increased by 7.9% compared to the 12-month period in 2011. The market share of Olympic Casino Eesti AS in the Estonian gaming market was 57% based on Q4 2012 and 55% based on Q4 2011. During the 12-month period in 2012, the total Estonian gaming market increased by 7% as compared to the 12-month period in 2011.
During the 12-month period in 2012, the EBITDA of the Estonian segment totalled EUR 9.6 million and the operating profit totalled EUR 6.7 million. During the 12-month period in 2011, the EBITDA of the Estonian segment totalled EUR 7.1 million and the operating profit totalled EUR 3.5 million.
At the end of Q4 2012, there were 18 Olympic casinos with 739 slot machines and 20 gaming tables operating in Estonia.
Latvian segment
During the 12-month period in 2012, the external revenue of the Latvian segment totalled EUR 33.7 million, of which the income from gaming transactions totalled EUR 30.8 million and other revenue and income totalled EUR 2.9 million. The external revenue of the Latvian segment increased by 12.9% compared to the 12-month period in 2011. The market share of Olympic Casino Latvia SIA in the Latvian gaming market was 21% based on Q4 2012 and 21% based on Q4 2011. During the 12-month period in 2012, the total Latvian gaming market increased by 14% as compared to the 12-month period in 2011.
During the 12-month period in 2012, the EBITDA of the Latvian segment totalled EUR 15.5 million and the operating profit totalled EUR 13.2 million. During the 12-month period in 2011, the EBITDA of the Latvian segment totalled EUR 12.7 million and the operating profit totalled EUR 9.5 million.
At the end of Q4 2012, there were 21 Olympic casinos with 676 slot machines and 24 gaming tables operating in Latvia.
Lithuanian segment
During the 12-month period in 2012, the external revenue of the Lithuanian segment totalled EUR 20.0 million, of which the income from gaming transactions totalled EUR 18.7 million and other revenue and income totalled EUR 1.3 million. The external revenue of the Lithuanian segment increased by 3.7% compared to the 12-month period in 2011. The market share of Olympic Casino Group Baltija UAB in the Lithuanian gaming market was 69% based on Q4 2012 and 71% based on Q4 2011. During the 12-month period in 2012, the total Lithuanian gaming market increased by 7% as compared to the 12‑month period in 2011.
During the 12-month period in 2012, the EBITDA of the Lithuanian segment totalled EUR 5.2 million and the operating profit totalled EUR 3.9 million. During the 12-month period in 2011, the EBITDA of the Lithuanian segment totalled EUR 4.7 million and the operating profit totalled EUR 2.5 million.
At the end of Q4 2012, there were 10 Olympic casinos with 358 slot machines and 54 gaming tables operating in Lithuania.
Polish segment
During the 12-month period in 2012, the external revenue of the Polish segment totalled EUR 27.5 million, of which the income from gaming transactions totalled EUR 26.8 million and other revenue and income totalled EUR 0.7 million. The external revenue of the Polish segment decreased by 9.4% compared to the 12-month period in 2011.
During the 12-month period in 2012, the EBITDA of the Polish segment totalled EUR 4.7 million and the operating profit totalled EUR 2.6 million. During the 12-month period in 2011, the EBITDA of the Polish segment totalled EUR 6.2 million and the operating profit totalled EUR 2.7 million.
At the end of Q4 2012, there were 3 Olympic casinos with 264 slot machines and 37 gaming tables operating in Poland.
Slovak segment
During the 12-month period in 2012, the external revenue of the Slovak segment totalled EUR 15.2 million, of which the income from gaming transactions totalled EUR 13.8 million and other revenue and income totalled EUR 1.4 million. The external revenue of the Slovak segment increased by 40.1% compared to the 12-month period in 2011.
During the 12-month period in 2012, the EBITDA of the Slovak segment totalled EUR 2.6 million and the operating profit totalled EUR 1.3 million. During the 12-month period in 2011, the EBITDA of the Slovak segment totalled EUR 1.6 million and the operating profit totalled EUR 0.6 million.
At the end of Q4 2012, there were 4 Olympic casinos with 216 slot machines and 43 gaming tables operating in Slovakia.
Belarusian segment
In this interim financial statements the Belarusian segment is regarded as a hyperinflationary economy that is subject to the accounting policies of IAS 29.
During the 12-month period in 2012, the external revenue of the Belarusian segment totalled EUR 3.4 million, of which the income from gaming transactions totalled EUR 3.2 million and other revenue and income totalled EUR 0.2 million. The external revenue of the Belarusian segment increased by 6.0% compared to the 12-month period in 2011.
During the 12-month period in 2012, the EBITDA of the Belarusian segment totalled EUR 1.3 million and the operating profit totalled EUR 1.1 million. During the 12-month period in 2011, the EBITDA of the Belarusian segment totalled EUR 0.7 million and the operating profit totalled EUR 0.1 million.
At the end of Q4 2012, there were 5 Olympic casinos with 229 slot machines operating in Belarus.
Italian segment
In 2012, the external revenue of the Italian segment before deducting the gaming taxes of Italy totalled EUR 1.3 million. In 2012, the EBITDA of the Italian segment totalled EUR -0.3 million and the operating loss totalled EUR 0.3 million
At the end of Q4 2012, there were 2 VLT slot casinos under the brand Slottery with 112 gaming machines operating in Italy
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 2012, the consolidated balance sheet total of the Group was EUR 109.2 million (31 December 2011: EUR 101.0 million). The balance sheet amount has increased by 8.1% during the 12-month period in 2012.
Current assets totalled EUR 53.8 million or 49.3% of total assets, and non-current assets totalled EUR 55.4 million or 50.7% of total assets. At the balance sheet date, the liabilities totalled EUR 16.2 million and the equity totalled EUR 93.0 million. The largest liability items included tax liabilities of EUR 4.6 million, payables to suppliers 3.3 million and payables to employees of EUR 3.2 million.
Investments
During the 12-month period in 2012, the Group’s expenditures on property, plant and equipment totalled EUR 8.8 million, of which EUR 4.4 million was spent on construction and reconstruction of casinos and EUR 4.1 million on new gaming equipment.
During the 12-month period in 2011, expenditures on property, plant and equipment totalled EUR 3.8 million.
Cash flows
During the 12-month period in 2012, the Group’s cash flows generated from operating activities totalled EUR 34.7 million. Cash flows used in investing activities totalled EUR 10.7 million and cash flows used in financing activities totalled EUR 21.4 million. Net cash flows totalled EUR 2.6 million.
During the 12-month period in 2011, the Group’s cash flows generated from operating activities totalled EUR 33.9 million. Cash flows used in investing activities totalled EUR 11.5 million and cash flows used in financing activities totalled EUR 18.1 million. Net cash flows totalled EUR 4.2 million.
Staff
At 31 December 2012, the Group employed 2,277 people (31 December 2011: 2,336): 520 in Estonia, 480 in Latvia, 626 in Lithuania, 320 in Poland, 226 in Slovakia, 98 in Belarus and 7 in Italy.
During the 12-month period in 2012, employee wages and salaries including social security taxes totalled EUR 33.0 million (12m 2011: EUR 30.5 million). In 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 793 thousand (2011: EUR 640 thousand) and EUR 157 thousand (2011: EUR 157 thousand), respectively.
Consolidated statement of financial position
|
|
31.12.2012 |
31.12.2011 |
|
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
35,973 |
33,413 |
|
Financial investments |
13,773 |
9,508 |
|
Receivables and prepayments |
2,730 |
2,606 |
|
Prepaid income tax |
280 |
397 |
|
Inventories |
1,036 |
909 |
|
Total current assets |
53,792 |
46,833 |
|
|
|
|
|
Non-current assets |
|
|
|
Deferred tax assets |
1,038 |
1,111 |
|
Financial investments |
2,035 |
2,937 |
|
Other long-term receivables |
712 |
712 |
|
Investment property |
1,785 |
1,795 |
|
Property, plant and equipment |
19,611 |
19,754 |
|
Intangible assets |
30,226 |
27,822 |
|
Total non-current assets |
55,407 |
54,131 |
|
|
|
|
|
TOTAL ASSETS |
109,199 |
100,964 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities |
|
|
|
Borrowings |
241 |
3,113 |
|
Trade and other payables |
12,827 |
9,870 |
|
Income tax payable |
827 |
1,215 |
|
Provisions |
1,585 |
1,881 |
|
Total current liabilities |
15,480 |
16,079 |
|
|
|
|
|
Non-current liabilities |
|
|
|
Deferred tax liability |
140 |
90 |
|
Borrowings |
596 |
3,136 |
|
Total non-current liabilities |
736 |
3,226 |
|
|
|
|
|
TOTAL LIABILITIES |
16,216 |
19,305 |
|
|
|
|
|
EQUITY |
|
|
|
Share capital |
60,532 |
81,718 |
|
Share premium |
0 |
14,535 |
|
Statutory reserve capital |
0 |
2,470 |
|
Other reserves |
141 |
53 |
|
Translation reserves |
-700 |
-1,776 |
|
Retained earnings / accumulated losses |
27,327 |
-19,930 |
|
Total equity attributable to equity holders of the parent |
87,300 |
77,070 |
|
Non-controlling interest |
5,683 |
4,589 |
|
TOTAL EQUITY |
92,983 |
81,659 |
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
109,199 |
100,964 |
Consolidated statement of comprehensive income
|
|
Q4 2012 |
Q4 2011 |
2012 |
2011 |
|
Continuing operations |
|
|
|
|
|
Income from gaming transactions |
34,856 |
31,359 |
125,479 |
113,070 |
|
Revenue |
2,407 |
2,292 |
9,242 |
8,405 |
|
Other income |
666 |
449 |
1,224 |
4,892 |
|
Total revenue and income |
37,929 |
34,100 |
135,945 |
126,367 |
|
|
|
|
|
|
|
Cost of materials, goods and services |
-796 |
-786 |
-2,907 |
-2,843 |
|
Other operating expenses |
-16,998 |
-15,018 |
-61,036 |
-56,911 |
|
Staff costs |
-9,050 |
-8,094 |
-33,005 |
-29,812 |
|
Depreciation, amortisation and impairment |
-2,421 |
-3,250 |
-10,380 |
-14,281 |
|
Change in the fair value of investment property |
107 |
166 |
107 |
166 |
|
Other expenses |
-112 |
-2,197 |
-327 |
-3,861 |
|
Total operating expenses |
-29,270 |
-29,179 |
-107,548 |
-107,542 |
|
|
|
|
|
|
|
Operating profit |
8,659 |
4,921 |
28,397 |
18,825 |
|
|
|
|
|
|
|
Interest income |
134 |
79 |
351 |
359 |
|
Interest expense |
-13 |
-83 |
-157 |
-435 |
|
Foreign exchange gains (losses) |
-10 |
-55 |
-47 |
107 |
|
Other finance income and costs |
-975 |
108 |
436 |
480 |
|
Total finance income and costs |
-864 |
49 |
583 |
511 |
|
|
|
|
|
|
|
Profit from operating activities |
7,795 |
4,970 |
28,980 |
19,336 |
|
|
|
|
|
|
|
Income tax expense |
-1,247 |
-905 |
-3,961 |
-2,487 |
|
Net profit for the period from continuing operations |
6,548 |
4,065 |
25,019 |
16,849 |
|
|
|
|
|
|
|
Net loss for the period from discontinued operations |
0 |
0 |
0 |
-2,462 |
|
|
|
|
|
|
|
Net profit for the period |
6,548 |
4,065 |
25,019 |
14,387 |
|
Attributable to equity holders of the parent company |
6,502 |
3,796 |
24,199 |
13,830 |
|
Attributable to non-controlling interest |
46 |
269 |
820 |
557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
Currency translation differences |
|
|
|
|
|
Continuing operations |
-40 |
-30 |
1,076 |
-2,329 |
|
Discontinued operations |
0 |
0 |
0 |
-187 |
|
Total comprehensive profit for the period |
6,508 |
4,035 |
26,095 |
11,871 |
|
Attributable to equity holders of the parent company |
6,462 |
3,766 |
25,275 |
11,314 |
|
Attributable to non-controlling interest |
46 |
269 |
820 |
557 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share* |
4.3 |
2.5 |
16.0 |
9.1 |
|
From continuing operations |
4.3 |
2.5 |
16.0 |
10.7 |
|
From discontinuing operations |
0.0 |
0.0 |
0.0 |
-1.6 |
|
|
|
|
|
|
|
Diluted earnings per share* |
4.3 |
2.5 |
16.0 |
9.1 |
|
From continuing operations |
4.3 |
2.5 |
16.0 |
10.7 |
|
From discontinuing operations |
0.0 |
0.0 |
0.0 |
-1.6 |
* euro cents
Madis Jääger
CEO
Olympic Entertainment Group AS
Tel + 372 667 1250
E-mail madis.jaager@oc.eu
http://www.olympic-casino.com
|