Börsiteade

Pealkiri

OEG: consolidated unaudited results for Q3 and 9m 2012

Teade

Key performance indicators of the Group

(in millions of euros)

                                           9 m 2012  9 m 2011  9 m 2010
                                          -----------------------------
                                          -----------------------------
Revenue                                        98.0      93.2      81.8
EBITDA                                         27.7      24.0      15.5
Operating profit                               19.7      11.5       2.1
Net profit                                     17.7      10.0       1.1
EBITDA margin                                 28.3%     25.7%     19.0%
Operating margin                              20.1%     12.3%      2.6%
Net margin                                    18.1%     10.8%      1.3%
ROE                                           22.4%     13.0%      1.5%
ROA                                           16.2%      9.4%      1.1%
Current ratio                                   2.1       2.2       2.5
                                                                       
Number of casinos at year-end                    62        63        64
Casino floor area (m²) at year-end           23,354    23,149    24,988
                                                                       
Number of slot machines at the period end     2,479     2,447     2,445
Number of gaming tables at the period end       182       173       170



Key developments of the Group during the 9-month period of 2012:

  -- The Group’s consolidated net profit totalled EUR 17.7 million. During the
     9-month period of 2011, the Group earned a net profit of EUR 10.0 million.
  -- The efficiency of the Group’s business operations improved. During the
     9-month period of 2012, the Group’s income from gaming transactions and
     revenues totalled EUR 97.5 million, i.e. 9.8% more than compared to the
     9?month period of 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.
  -- 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.

During 9-month period of 2012, the Group’s consolidated sales revenue totalled
EUR 97.5 million and the revenue totalled EUR 98.0 million, which is 5.1% more
than the total revenue of EUR 93.2 million earned during the 9-month period of
2011. The Group’s EBITDA increased from EUR 24.0 million during the 9-month
period of 2011 to EUR 27.7 million this year. During the 9-month period of 2012
the operating profit totalled EUR 19.7 million, last year the operating profit
totalled EUR 11.5 million. 

During the 9-month period of 2012, gaming operations accounted for 92.5% and
other revenue 7.5% of the Group’s consolidated revenue, the respective
percentages for the 9-month period of 2011 were 88.5% and 11.5%. 



Total external income from gaming transactions and revenue (EUR thousands):

           Q3 2012  Change  Percentage of total  Q3 2011  Percentage of total
          -------------------------------------------------------------------
Estonia      9,340   13.6%                27.6%    8,225                26.6%
Latvia       8,902   13.7%                26.3%    7,828                25.3%
Lithuania    5,023   -2.6%                14.8%    5,157                16.7%
Poland       6,437    3.9%                19.0%    6,197                20.0%
Slovakia     3,243   18.5%                 9.6%    2,737                 8.8%
Belarus        906   13.4%                 2.7%      799                 2.6%
Romania*         0    0.0%                 0.0%        0                 0.0%
          -------------------------------------------------------------------
Total       33,851    9.4%               100.0%   30,943               100.0%





           9m 2012   Change  Percentage of total  9m 2011  Percentage of total
          --------------------------------------------------------------------
Estonia     25,134    14.6%                25.8%   21,933                24.7%
Latvia      24,645    16.8%                25.3%   21,104                23.8%
Lithuania   14,383     3.4%                14.8%   13,914                15.7%
Poland      19,812    -1.8%                20.3%   20,178                22.7%
Slovakia    11,002    33.6%                11.3%    8,236                 9.3%
Belarus      2,481     0.9%                 2.5%    2,459                 2.8%
Romania*         0  -100.0%                 0.0%      954                 1.1%
          --------------------------------------------------------------------
Total       97,457     9.8%               100.0%   88,778               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 Q3 2012, the Group had 62 casinos, with the total floor area of
23,354 m². At the end of Q3 2011, the number of the Group’s casinos was 63 and
total floor area was 23,149 m². 



Number of casinos by segment

           30.09.2012  30.09.2011
          -----------------------
Estonia            18          17
Latvia             21          21
Lithuania          10          11
Poland              4           6
Slovakia            4           3
Belarus             5           5
          -----------------------
Total              62          63

During the 9-month period of 2012, the Group’s consolidated operating expenses
decreased by 4.3% or EUR 3.5 million as compared to the expenses during 9-month
period in 2011. Depreciation, amortisation and impairment losses decreased the
most compared to the 9-month period in 2011 by EUR 4.5 million. Staff costs
with social security taxes increased the most as compared to 9-month period of
2011 by EUR 1.5 million and licence fees and gaming taxes by EUR 1.0 million. 

Staff costs with social security taxes made up the largest share of the Group’s
operating expenses, i.e. EUR 24.0 million, followed by gaming tax expenses of
EUR 20.1 million, depreciation, amortisation and impairment losses of EUR 8.0
million, rental expenses of EUR 7.1 million and marketing expenses of EUR 6.6
million. 

During the 9-month period in 2012, the consolidated net profit attributable to
equity holders of the parent company totalled EUR 17.7 million. During 9-month
period in 2011, the consolidated net profit attributable to equity holders of
the parent company totalled EUR 10.0 million. 



Overview by markets

Estonian segment

During the 9-month period in 2012, the external revenue of the Estonian segment
totalled EUR 25.4 million, of which the income from gaming transactions
totalled EUR 22.7 million and other revenue and income totalled EUR 2.7
million. The external revenue of the Estonian segment increased by 6.1%
compared to the 9-month period in 2011. The market share of Olympic Casino
Eesti AS in the Estonian gaming market was 57% based on Q3 2012 and 55% based
on Q3 2011. During the 9-month period in 2012, the total Estonian gaming market
increased by 7% as compared to the 9-month period in 2011. 

During the 9-month period in 2012, the EBITDA of the Estonian segment totalled
EUR 6.6 million and the operating profit totalled EUR 4.5 million. During the
9-month period in 2011, the EBITDA of the Estonian segment totalled EUR 6.1
million and the operating profit totalled EUR 3.2 million. 

At the end of Q3 2012, there were 18 Olympic casinos with 739 slot machines and
20 gaming tables operating in Estonia. 



Latvian segment

During the 9-month period in 2012, the external revenue of the Latvian segment
totalled EUR 24.8 million, of which the income from gaming transactions
totalled EUR 22.6 million and other revenue and income totalled EUR 2.2
million. The external revenue of the Latvian segment increased by 17.3%
compared to the 9-month period in 2011. The market share of Olympic Casino
Latvia SIA in the Latvian gaming market was 20% based on Q3 2012 and 20% based
on Q3 2011. During the 9-month period in 2012, the total Latvian gaming market
increased by 16% as compared to the 9-month period in 2011. 

During the 9-month period in 2012, the EBITDA of the Latvian segment totalled
EUR 11.3 million and the operating profit totalled EUR 9.5 million. During the
9-month period in 2011, the EBITDA of the Latvian segment totalled EUR 8.6
million and the operating profit totalled EUR 6.1 million. 

At the end of Q3 2012, there were 21 Olympic casinos with 647 slot machines and
25 gaming tables operating in Latvia. 



Lithuanian segment

During the 9-month period in 2012, the external revenue of the Lithuanian
segment totalled EUR 14.4 million, of which the income from gaming transactions
totalled EUR 13.5 million and other revenue and income totalled EUR 0.9
million. The external revenue of the Lithuanian segment increased by 3.2%
compared to the 9-month period in 2011. The market share of Olympic Casino
Group Baltija UAB in the Lithuanian gaming market was 66% based on Q3 2012 and
68% based on Q3 2011. During the 9-month period in 2012, the total Lithuanian
gaming market increased by 7% as compared to the 9?month period in 2011. 

During the 9-month period in 2012, the EBITDA of the Lithuanian segment
totalled EUR 3.5 million and the operating profit totalled EUR 2.3 million.
During the 9-month period in 2011, the EBITDA of the Lithuanian segment
totalled EUR 3.3 million and the operating profit totalled EUR 1.8 million. 

At the end of Q3 2012, there were 10 Olympic casinos with 356 slot machines and
52 gaming tables operating in Lithuania. 



Polish segment

During the 9-month period in 2012, the external revenue of the Polish segment
totalled EUR 19.9 million, of which the income from gaming transactions
totalled EUR 19.5 million and other revenue and income totalled EUR 0.4
million. The external revenue of the Polish segment decreased by 11.7% compared
to the 9-month period in 2011. 

During the 9-month period in 2012, the EBITDA of the Polish segment totalled
EUR 3.4 million and the operating profit totalled EUR 1.6 million. During the
9-month period in 2011, the EBITDA of the Polish segment totalled EUR 4.7
million and the operating profit totalled EUR 1.9 million. 

At the end of Q3 2012, there were 4 Olympic casinos with 307 slot machines and
41 gaming tables operating in Poland. 



Slovak segment

During the 9-month period in 2012, the external revenue of the Slovak segment
totalled EUR 11.0 million, of which the income from gaming transactions
totalled EUR 10.0 million and other revenue and income totalled EUR 1.0
million. The external revenue of the Slovak segment increased by 33.6% compared
to the 9-month period in 2011. 

During the 9-month period in 2012, the EBITDA of the Slovak segment totalled
EUR 2.0 million and the operating profit totalled EUR 1.1 million. During the
9-month period in 2011, the EBITDA of the Slovak segment totalled EUR 1.6
million and the operating profit totalled EUR 0.9 million. 

At the end of Q3 2012, there were 4 Olympic casinos with 202 slot machines and
44 gaming tables operating in Slovakia. 


Belarus 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 9-month period in 2012, the external revenue of the Belarusian
segment totalled EUR 2.5 million, of which the income from gaming transactions
totalled EUR 2.3 million and other revenue and income totalled EUR 0.2 million.
The external revenue of the Belarusian segment increased by 2.4% compared to
the 9-month period in 2011. 

During the 9-month period in 2012, the EBITDA of the Belarusian segment
totalled EUR 0.9 million and the operating profit totalled EUR 0.8 million.
During the 9-month period in 2011, the EBITDA of the Belarusian segment
totalled EUR 0.6 million and the operating profit totalled EUR 0.1 million. 

At the end of Q3 2012, there were 5 Olympic casinos with 228 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 30 September 2012, the consolidated balance sheet total of the Group was EUR
118.1 million (31 December 2011: EUR 101.0 million). The balance sheet total
increased by 17.0% during the 9-month period in 2012. 

Current assets totalled EUR 65.3 million or 55.3% of total assets, and
non-current assets totalled EUR 52.8 million or 44.7% of total assets. At the
balance sheet date, the liabilities totalled EUR 32.0 million and the equity
totalled EUR 86.1 million. The largest liability items included payables to the
shareholders from the reduction of share capital in the amount of EUR 15.1
million, borrowings of EUR 3.9 million, tax liabilities of EUR 4.3 million and
payables to employees of EUR 2.5 million. 



Investments

During the 9-month period in 2012, the Group’s expenditures on property, plant
and equipment totalled EUR 5.7 million, of which EUR 3.1 million was spent on
construction and reconstruction of casinos and EUR 2.6 million on new gaming
equipment. 

During the 9-month period in 2011, expenditures on property, plant and
equipment totalled EUR 2.8 million. 



Cash flows

During the 9-month period in 2012, the Group’s cash flows generated from
operating activities totalled EUR 23.7 million. Cash flows used in investing
activities totalled EUR 7.1 million and cash flows used in financing activities
totalled EUR 2.3 million. Net cash flows totalled EUR 14.3 million. 

During the 9-month period in 2011, the Group’s cash flows generated from
operating activities totalled EUR 23.4 million. Cash flows used in investing
activities totalled EUR 9.8 million and cash flows used in financing activities
totalled EUR 8.3 million. Net cash flows totalled EUR 5.3 million. 



Staff

At 30 September 2012, the Group employed 2,310 people (31 December 2011:
2,336): 523 in Estonia, 472 in Latvia, 613 in Lithuania, 375 in Poland, 226 in
Slovakia and 101 in Belarus. 

During the 9-month period in 2012, employee wages and salaries including social
security taxes totalled EUR 24.0 million (9m 2011: EUR 22.4 million). During
the 9-month period 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 641 thousand (9m 2011: EUR 516
thousand) and EUR 117 thousand (9m 2011: EUR 117 thousand), respectively. 



Consolidated statement of financial position

                                                          30.09.2012  31.12.2011
                                                         -----------------------
                                                         -----------------------
ASSETS                                                                          
Current assets                                                                  
Cash and cash equivalents                                     47,702      33,413
Financial investments                                         13,518       9,508
Receivables and prepayments                                    2,882       2,606
Prepaid income tax                                               267         397
Inventories                                                      963         909
                                                         -----------------------
Total current assets                                          65,332      46,833
                                                                                
Non-current assets                                                              
Deferred tax assets                                            1,161       1,111
Financial investments                                          2,948       2,937
Other long-term receivables                                      654         712
Investment property                                            1,804       1,795
Property, plant and equipment                                 17,898      19,754
Intangible assets                                             28,326      27,822
                                                         -----------------------
                                                         -----------------------
Total non-current assets                                      52,791      54,131
                                                                                
                                                         -----------------------
                                                         -----------------------
TOTAL ASSETS                                                 118,123     100,964
                                                                                
                                                                                
LIABILITIES AND EQUITY                                                          
Current liabilities                                                             
Borrowings                                                     3,110       3,113
Trade and other payables                                      25,507       9,870
Income tax payable                                               881       1,215
Provisions                                                     1,536       1,881
                                                         -----------------------
                                                         -----------------------
Total current liabilities                                     31,034      16,079
                                                                                
Non-current liabilities                                                         
Deferred tax liability                                           116          90
Borrowings                                                       806       3,136
                                                         -----------------------
                                                         -----------------------
Total non-current liabilities                                    922       3,226
                                                                                
                                                         -----------------------
                                                         -----------------------
TOTAL LIABILITIES                                             31,956      19,305
                                                                                
EQUITY                                                                          
Share capital                                                 60,532      81,718
Share premium                                                      0      14,535
Statutory reserve capital                                          0       2,470
Other reserves                                                   117          53
Translation reserves                                            -659      -1,776
Retained earnings / accumulated losses                        20,824     -19,930
                                                         -----------------------
                                                         -----------------------
Total equity attributable to equity holders of the            80,814      77,070
 parent                                                                         
Non-controlling interest                                       5,353       4,589
                                                         -----------------------
                                                         -----------------------
TOTAL EQUITY                                                  86,167      81,659
                                                                                
                                                         -----------------------
                                                         -----------------------
TOTAL LIABILITIES AND EQUITY                                 118,123     100,964



Consolidated statement of comprehensive income

                                              Q3 2012  Q3 2011  9m 2012  9m 2011
                                             -----------------------------------
                                             -----------------------------------
Continuing operations                                                           
Income from gaming transactions                31,409   28,661   90,629   81,711
Revenue                                         2,442    2,282    6,828    6,113
Other income                                       35      432      558    4,443
                                             -----------------------------------
                                             -----------------------------------
Total revenue and income                       33,886   31,375   98,015   92,267
                                                                                
Cost of materials, goods and services            -763     -750   -2,118   -2,057
Other operating expenses                      -14,733  -13,627  -44,030  -41,893
Staff costs                                    -7,923   -7,345  -23,955  -21,717
Depreciation, amortisation and impairment      -2,392   -3,240   -7,959  -11,031
Other expenses                                    -58     -678     -216   -1,664
                                             -----------------------------------
                                             -----------------------------------
Total operating expenses                      -25,869  -25,640  -78,278  -78,362
                                                                                
                                             -----------------------------------
Operating profit                                8,017    5,735   19,737   13,905
                                                                                
Interest income                                    63      127      216      280
Interest expense                                  -42     -108     -144     -351
Foreign exchange gains (losses)                     8       47      -37      160
Other finance income and costs                    889      377    1,412      372
                                             -----------------------------------
                                             -----------------------------------
Total finance income and costs                    918      443    1,447      461
                                                                                
Profit from operating activities                8,935    6,178   21,184   14,366
                                             -----------------------------------
                                                                                
Income tax expense                             -1,274     -625   -2,714   -1,582
                                             -----------------------------------
                                             -----------------------------------
Net profit for the period from continuing       7,661    5,553   18,470   12,784
 operations                                                                     
                                                                                
Net profit (loss) for the period from               0        0        0   -2,462
 discontinued operations                                                        
                                                                                
                                             -----------------------------------
                                             -----------------------------------
Net profit for the period                       7,661    5,553   18,470   10,322
Attributable to equity holders of the parent    7,337    5,606   17,696   10,034
 company                                                                        
Attributable to non-controlling interest          324      -53      774      288
                                                                                
                                                                                
Other comprehensive income                                                      
Currency translation differences                                                
Continuing operations                             420   -1,581    1,117   -2,299
Discontinued operations                             0        0        0     -187
                                             -----------------------------------
                                             -----------------------------------
Total comprehensive profit for the period       8,081    3,972   19,587    7,836
Attributable to equity holders of the parent    7,757    4,025   18,813    7,548
 company                                                                        
Attributable to non-controlling interest          324      -53      774      288
                                                                                
                                                                                
Basic earnings per share*                         4.8      3.7     11.7      6.6
From continuing operations                        4.8      3.7     11.7      8.2
From discontinuing operations                     0.0      0.0      0.0     -1.6
                                                                                
Diluted earnings per share*                       4.8      3.7     11.7      6.6
From continuing operations                        4.8      3.7     11.7      8.2
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 [email protected]
http://www.olympic-casino.com