Börsiteade

Pealkiri

OEG: consolidated unaudited results for Q1 2013

Teade

Key performance indicators of the Group

(in millions of euros)

                                           Q1 2013  Q1 2012  Q1 2011
                                          --------------------------
                                          --------------------------
Revenue                                       33.3     32.2     31.1
EBITDA                                         8.2      8.7      6.3
Operating profit                               6.1      5.8      0.6
Net profit                                     4.6      5.1      0.2
EBITDA margin                                24.8%    27.1%    20.1%
Operating margin                             18.4%    18.0%     2.0%
Net margin                                   13.8%    15.9%     0.6%
ROE                                           5.1%     6.4%     0.2%
ROA                                           4.1%     4.9%     0.2%
Current ratio                                  3.6      2.2      2.9
                                                                    
Number of casinos at year-end                   66       61       65
Casino floor area (m²) at year-end          25,232   23,418   24,658
                                                                    
Number of slot machines at the period end    2,693    2,446    2,494
Number of gaming tables at the period end      184      183      184



Underlying formulas:

  -- EBITDA = earnings before financial expenses, taxes, depreciation and
     amortisation and impairment losses
  -- Operating profit = profit before financial expenses and taxes
  -- Net profit = net profit for the period less non-controlling interests
  -- EBITDA margin = EBITDA / revenue
  -- Operating margin = operating profit / revenue
  -- Net margin = net profit / revenue
  -- ROE = net profit / average total equity attributable to the shareholders of
     the parent company
  -- ROA = net profit / average total assets
  -- Current ratio = current assets / current liabilities



Key developments of the Group during the Q1 of 2013:

  -- The Group’s consolidated net profit for Q1 2013 totalled EUR 4.6 million
     compared to EUR 5.1 million in Q1 2012.
  -- In Q1 of 2013, the Group’s income from gaming transactions and revenues
     totalled EUR 33.1 million, up 4.4% year-over-year. The number of casinos in
     operation increased by 5 year-over-year.
  -- On 11 March the subsidiary Olympic Casino Eesti AS of Olympic Entertainment
     Group AS acquired a 100% shareholding in Siquia Holding B.V. registered in
     the Netherlands.
  -- On 11 March 2013 Olympic Entertainment Group AS established and registered
     the companies Gametech Services Ltd and Brandhouse Ltd in Jersey. The aim
     of establishing the subsidiaries is to create a legal platform for the
     expansion of the Group’s activities in markets related to remote gambling.
  -- At the annual general meeting of the shareholders held on 18 April 2013 it
     was decided to pay a dividend in the total amount of 15,132,950.50 euros,
     which shall be paid to the shareholders on 15 May 2013.

In Q1 2013, the Group’s consolidated sales revenue totalled EUR 33.1 million
and the total revenue totalled EUR 33.3 million, up 3.5% compared to the total
revenue of EUR 32.2 million earned in Q1 2012. The Group’s EBITDA decreased
from EUR 8.7 million in Q1 2012 to EUR 8.2 million in Q1 2013. In Q1 2013 the
operating profit totalled EUR 6.1 million, in Q1 2012 the operating profit
totalled EUR 5.8 million. 

In Q1 2013, gaming operations accounted for 92.8% and other revenue 7.2% of the
Group’s consolidated revenue, the respective percentages for Q1 2012 were 92.1%
and 7.9%. 



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

           Q1 2013  Change  Percentage of total  Q1 2012  Percentage of total
          -------------------------------------------------------------------
Estonia      8,108    6.5%                24.5%    7,614                24.0%
Latvia       8,030    0.7%                24.3%    7,976                25.2%
Lithuania    5,130    4.8%                15.5%    4,894                15.5%
Poland       6,282    0.7%                19.0%    6,238                19.7%
Slovakia     3,919   -7.9%                11.9%    4,255                13.4%
Belarus        691    0.1%                 2.1%      690                 2.2%
Italy          899       -                 2.7%        0                 0.0%
          -------------------------------------------------------------------
          -------------------------------------------------------------------
Total       33,059    4.4%               100.0%   31,667               100.0%



At the end of Q1 2013, the Group had 66 casinos, with the total floor area of
25,232 m². At the end of Q1 2012, the number of the Group’s casinos was 61 and
total floor area was 23,418 m². 



Number of casinos by segment

           31 March 2013  31 March 2012
                         --------------
          ---------------              
Estonia               18             17
Latvia                21             21
Lithuania             12             10
Poland                 3              4
Slovakia               5              4
Belarus                5              5
Italy                  2              -
          -----------------------------
Total                 66             61



In Q1 2013, the Group’s consolidated operating expenses increased by 3.0% or
EUR 0.8 million compared to Q1 2012. Compared to Q1 2012 the highest increase
was in rental expenses (up EUR 0.7 million) while staff costs including social
security taxes increased EUR 0.3 million and marketing expenses EUR 0.3
million. Depreciation, amortisation and impairment losses decreased the most
compared to Q1 2012 by EUR 0.8 million. 

Staff costs including social security taxes made up the largest share of the
Group’s operating expenses, i.e. EUR 8.3 million, followed by gaming tax
expenses of EUR 6.8 million, rental expenses EUR 3.1 million, marketing
expenses of EUR 2.4 million and depreciation, amortisation and impairment
losses of EUR 2.1 million. 

In Q1 2013, the consolidated net profit attributable to equity holders of the
parent company totalled EUR 4.6 million. In Q1 2012, the consolidated net
profit attributable to equity holders of the parent company totalled EUR 5.1
million. 



Overview by markets

Estonian segment

In Q1 2013, the external revenue of the Estonian segment totalled EUR 8.2
million, of which the income from gaming transactions totalled EUR 7.5 million
and other revenue and income totalled EUR 0.5 million. The external revenue of
the Estonian segment increased by 4.9% compared to the Q1 2012. The market
share of Olympic Casino Eesti AS in the Estonian gaming market was 54% in Q1
2013 and 54% in Q1 2012. In Q1 2013, the total Estonian gaming market increased
by 2.5% as compared to the Q1 2012. 

In Q1 2013, EBITDA of the Estonian segment totalled EUR 1.8 million and the
operating profit totalled EUR 1.4 million. In Q1 2012, EBITDA of the Estonian
segment totalled EUR 1.8 million and the operating profit totalled EUR 1.1
million. 

At the end of Q1 2013, there were 18 Olympic casinos with 739 slot machines and
20 gaming tables operating in Estonia. 



Latvian segment

In Q1 2013, the external revenue of the Latvian segment totalled EUR 8.1
million, of which the income from gaming transactions totalled EUR 7.3 million
and other revenue and income totalled EUR 0.8 million. The external revenue of
the Latvian segment was at the same level compared to the Q1 2012. The market
share of Olympic Casino Latvia SIA in the Latvian gaming market was 20% in Q1
2013 and 20% in Q1 2012. In Q1 2013, the total Latvian gaming market increased
by 2.9% as compared to the Q1 2012. 

In Q1 2013, EBITDA of the Latvian segment totalled EUR 3.4 million and the
operating profit totalled EUR 2.8 million. In Q1 2012, EBITDA of the Latvian
segment totalled EUR 3.6 million and the operating profit totalled EUR 2.9
million. 

At the end of Q1 2013, there were 21 Olympic casinos with 673 slot machines and
18 gaming tables operating in Latvia. 



Lithuanian segment

In Q1 2013, the external revenue of the Lithuanian segment totalled EUR 5.1
million, of which the income from gaming transactions totalled EUR 4.8 million
and other revenue and income totalled EUR 0.3 million. The external revenue of
the Lithuanian segment increased by 4.4% compared to the Q1 2012. The market
share of Olympic Casino Group Baltija UAB in the Lithuanian gaming market was
69% in Q1 2013 and 68% in Q1 2012. In Q1 2013, the total Lithuanian gaming
market increased by 4.0% as compared to the Q1 2012. 

In Q1 2013, EBITDA of the Lithuanian segment totalled EUR 1.2 million and the
operating profit totalled EUR 0.9 million. In Q1 2012, EBITDA of the Lithuanian
segment totalled EUR 1.1 million and the operating profit totalled EUR 0.7
million. 

At the end of Q1 2013, there were 12 Olympic casinos with 414 slot machines and
59 gaming tables operating in Lithuania. 



Polish segment

In Q1 2013, the external revenue of the Polish segment totalled EUR 6.3
million, of which the income from gaming transactions totalled EUR 6.2 million
and other revenue and income totalled EUR 0.1 million. The external revenue of
the Polish segment decreased by 0.5% compared to the Q1 2012. 

In Q1 2013, EBITDA of the Polish segment totalled EUR 1.1 million and the
operating profit totalled EUR 0.7 million. In Q1 2012, EBITDA of the Polish
segment totalled EUR 0.9 million and the operating profit totalled EUR 0.2
million. 

At the end of Q1 2013, there were 3 Olympic casinos with 266 slot machines and
37 gaming tables operating in Poland. 



Slovak segment

In Q1 2013, the external revenue of the Slovak segment totalled EUR 3.9
million, of which the income from gaming transactions totalled EUR 3.6 million
and other revenue and income totalled EUR 0.3 million. The external revenue of
the Slovak segment decreased by 7.8% compared to the Q1 2012. 

In Q1 2013, EBITDA of the Slovak segment totalled EUR 0.6 million and the
operating profit totalled EUR 0.3 million. In Q1 2012, EBITDA of the Slovak
segment totalled EUR 1.1 million and the operating profit totalled EUR 0.8
million. 

At the end of Q1 2013, there were 5 Olympic casinos with 263 slot machines and
50 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. 

In Q1 2013, the external revenue of the Belarusian segment totalled EUR 0.7
million, of which the income from gaming transactions totalled EUR 0.7 million
and other revenue and income totalled EUR 0.0 million. The external revenue of
the Belarusian segment was at the same level compared to Q1 2012. 

In Q1 2013, EBITDA of the Belarusian segment totalled EUR 0.1 million and the
operating profit totalled EUR 0.1 million. In Q1 2012, EBITDA of the Belarusian
segment totalled EUR 0.2 million and the operating profit totalled EUR 0.1
million. 

At the end of Q1 2013, there were 5 Olympic casinos with 226 slot machines
operating in Belarus. 



Italian segment

In Q1 2013, the external revenue of the Italian segment before deducting the
gaming taxes of Italy totalled EUR 1.9 million. In Q1 2013, EBITDA of the
Italian segment totalled EUR 0.1 million and the operating loss totalled EUR
0.0 million. 

At the end of Q1 2013, there were 2 VLT slot casinos under the brand Slottery
with 112 gaming machines operating in Italy. 



Financial position

As at 31 March 2013, the total assets of the Group amounted to EUR 113.2
million (31 December 2012: EUR 109.2 million), up 3.6% during the Q1 2013. 

Current assets totalled EUR 55.3 million or 48.9% of total assets, and
non-current assets totalled EUR 57.9 million or 51.1% of total assets. At the
balance sheet date, the liabilities totalled EUR 15.8 million and the equity
totalled EUR 97.3 million. The largest liability items included tax liabilities
of EUR 4.5 million, payables to employees of EUR 3.5 million and payables to
suppliers of EUR 3.3 million. 



Investments

In Q1 2013, the Group’s expenditures on property, plant and equipment totalled
EUR 3.6 million, of which EUR 2.3 million was spent on new gaming equipment and
EUR 1.2 million on construction and reconstruction of casinos. 

In Q1 2012, expenditures on property, plant and equipment totalled EUR 1.4
million. 



Cash flows

In Q1 2013, the Group’s cash flows generated from operating activities totalled
EUR 4.6 million. Cash flows from investing activities totalled EUR 6.8 million
and cash flows used in financing activities totalled EUR 0.1 million. Net cash
flows totalled EUR 11.3 million. 

In Q1 2012, the Group’s cash flows generated from operating activities totalled
EUR 8.3 million. Cash flows from investing activities totalled EUR 1.6 million
and cash flows used in financing activities totalled EUR 0.8 million. Net cash
flows totalled EUR 9.2 million. 



Staff

As at 31 March 2013, the Group employed 2,388 people (31 December 2012: 2,277):
524 in Estonia, 493 in Latvia, 640 in Lithuania, 355 in Poland, 268 in
Slovakia, 101 in Belarus and 7 in Italy. 

In Q1 2013, employee wages and salaries including social security taxes
totalled EUR 8.3 million (Q1 2012: EUR 8.0 million). In Q1 2013, 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
222 thousand (Q1 2012: EUR 213 thousand) and EUR 39 thousand (Q1 2012: EUR 39
thousand), respectively. 





Consolidated statement of financial position

                                                          31.12.2013  31.12.2012
                                                         -----------------------
                                                         -----------------------
ASSETS                                                                          
Current assets                                                                  
Cash and cash equivalents                                     47,301      35,973
Financial investments                                          2,031      13,773
Receivables and prepayments                                    4,717       2,730
Prepaid income tax                                               259         280
Inventories                                                    1,007       1,036
                                                         -----------------------
Total current assets                                          55,315      53,792
                                                                                
Non-current assets                                                              
Deferred tax assets                                            1,019       1,038
Financial investments                                          3,401       2,035
Other long-term receivables                                      731         712
Investment property                                            1,785       1,785
Property, plant and equipment                                 21,008      19,611
Intangible assets                                             29,921      30,226
                                                         -----------------------
                                                         -----------------------
Total non-current assets                                      57,865      55,407
                                                                                
                                                         -----------------------
                                                         -----------------------
TOTAL ASSETS                                                 113,180     109,199
                                                                                
                                                                                
LIABILITIES AND EQUITY                                                          
Current liabilities                                                             
Borrowings                                                       240         241
Trade and other payables                                      13,354      12,827
Income tax payable                                               506         827
Provisions                                                     1,066       1,585
                                                         -----------------------
                                                         -----------------------
Total current liabilities                                     15,166      15,480
                                                                                
Non-current liabilities                                                         
Deferred tax liability                                           143         140
Borrowings                                                       539         596
                                                         -----------------------
                                                         -----------------------
Total non-current liabilities                                    682         736
                                                                                
                                                         -----------------------
                                                         -----------------------
TOTAL LIABILITIES                                             15,848      16,216
                                                                                
EQUITY                                                                          
Share capital                                                 60,532      60,532
Other reserves                                                   164         141
Translation reserves                                          -1,126        -700
Retained earnings                                             31,907      27,327
                                                         -----------------------
                                                         -----------------------
Total equity attributable to equity holders of the            91,477      87,300
 parent                                                                         
Non-controlling interest                                       5,855       5,683
                                                         -----------------------
                                                         -----------------------
TOTAL EQUITY                                                  97,332      92,983
                                                                                
                                                         -----------------------
                                                         -----------------------
TOTAL LIABILITIES AND EQUITY                                 113,180     109,199





Consolidated statement of comprehensive income

                                                      Q1 2013  Q1 2012
                                                     -----------------
                                                     -----------------
                                                                      
Income from gaming transactions                        30,884   29,596
Revenue                                                 2,175    2,071
Other income                                              225      484
                                                     -----------------
                                                     -----------------
Total revenue and income                               33,284   32,151
                                                                      
Cost of materials, goods and services                    -707     -664
Other operating expenses                              -15,968  -14,644
Staff costs                                            -8,303   -8,035
Depreciation, amortisation and impairment              -2,108   -2,901
Other expenses                                            -61     -110
                                                     -----------------
                                                     -----------------
Total operating expenses                              -27,147  -26,354
                                                                      
                                                     -----------------
Operating profit                                        6,137    5,797
                                                                      
Interest income                                            32       74
Interest expense                                           -4      -55
Foreign exchange gains (losses)                             5      -14
Other finance income and costs                           -621      285
                                                     -----------------
                                                     -----------------
Total finance income and costs                           -588      290
                                                                      
                                                     -----------------
Profit from operating activities                        5,549    6,087
                                                                      
Income tax expense                                       -797     -703
                                                     -----------------
Net profit for the period                               4,752    5,384
Attributable to equity holders of the parent company    4,580    5,122
Attributable to non-controlling interest                  172      262
                                                                      
                                                                      
Other comprehensive income                                            
                                                                      
Currency translation differences                         -426      868
                                                     -----------------
Total comprehensive profit for the period               4,326    6,252
Attributable to equity holders of the parent company    4,154    5,990
Attributable to non-controlling interest                  172      262
                                                                      
                                                                      
Basic earnings per share*                                 3.0      3.4
Diluted earnings per share*                               3.0      3.4

* euro cents





Madis Jääger
CEO
Olympic Entertainment Group AS
Tel + 372 667 1250
E-mail [email protected]
http://www.olympic-casino.com