OEG: consolidated unaudited results for Q4 and 12m 2015
Key performance indicators of the Group
|
|
|
2015 |
2014 |
2013 |
|
Revenues |
m€ |
165.9 |
150.7 |
145.8 |
|
Gaming tax |
m€ |
30.5 |
28.2 |
28.9 |
|
EBITDA |
m€ |
39.5 |
36.2 |
39.5 |
|
EBIT |
m€ |
31.4 |
25.8 |
31.8 |
|
Net profit |
m€ |
25.7 |
21.6 |
25.7 |
|
EBITDA margin |
% |
23.8 |
24.0 |
27.1 |
|
Operating margin |
% |
18.9 |
17.1 |
21.8 |
|
Net margin |
% |
15.5 |
14.3 |
17.7 |
|
|
|
|
|
|
|
Assets |
m€ |
162.3 |
126.2 |
118.3 |
|
Equity |
m€ |
122.9 |
109.2 |
102.0 |
|
ROE |
% |
23.4 |
21.4 |
27.9 |
|
ROA |
% |
17.8 |
17.7 |
22.6 |
|
Current ratio |
times |
1.4 |
3.0 |
3.2 |
|
|
|
|
|
|
|
Casinos at end of period |
# |
119 |
98 |
82 |
|
Casino floor area at end of period |
m2 |
33,969 |
32,242 |
28,031 |
|
Employees |
# |
3,118 |
2,665 |
2,515 |
|
|
|
|
|
|
|
Slot machines at the end of period |
# |
4,101 |
3,465 |
3,003 |
|
Electronic roulette terminals at the end of period |
# |
122 |
98 |
160 |
|
Gaming tables at the end of period |
# |
183 |
161 |
160 |
|
Tournament poker gaming tables at the end of period |
# |
65 |
55 |
61 |
Key developments of the Group in 2015:
-
The Group’s consolidated sales revenues for 2015 amounted to EUR 165.2 million, up 9.9% or EUR 14.9 million y‑o‑y.
-
Gaming revenues for 2015 accounted for 93.8% (154.9 m€) and other revenues for 6.2% (10.3 m€) of the Group’s consolidated sales revenues for 2015. A year before the revenue split was 93.9% (141.1 m€) and 6.1% (9.2 m€), respectively.
-
The Group’s consolidated EBITDA for 2015 amounted to EUR 39.5 million, a growth of 9.2% from EUR 36.2 million a year before. The Group’s consolidated operating profit increased EUR 5.6 million (+21.7%) to EUR 31.4 million.
-
The Group’s consolidated net profit attributable to equity holders of the parent company for 2015 totalled EUR 25.7 million compared to EUR 21.6 million a year ago.
-
On 14 January 2015 Olympic Entertainment Group AS has established subsidiaries OEG Malta Holding Ltd and OEG Malta Gaming Ltd in Malta. OEG Malta Gaming Ltd has concluded an agreement for providing casino management services and related service to Maltese company Casino Malta Limited and associated companies. On 21 December 2015 Group’s subsidiary OEG Malta Gaming Ltd opened the largest casino in Malta named Casino Malta by Olympic Casino in cooperation with Maltese hotel and entertainment enterprise Eden Leisure Group.
-
Group company Olympic Casino Eesti AS has acquired on 4 March 2015 business activities of two operating casinos from the Estonian casino operator Casino Cleopatra OÜ that increased the number of casinos Group owns in Estonia to 20.
-
The general meeting of shareholders held on 16 April 2015 has decided to pay out dividends in amount of EUR 15,179,120.60 that were paid out to shareholders on 4 May 2015.
-
Group company Olympic Casino Latvia SIA signed on 24 July 2015 the agreement to acquire 100% shareholding in Latvian casino operator SIA Garkalns, which was also the 100% owner of the subsidiary SIA Post-Nevada. The purpose of the acquisition was to increase the market share in Latvia. The completion of the transaction occurred in December after receiving the approval from the Latvian Competition Council. As a result of the completion of the transaction the Group owns 57 casinos in Latvia.
-
Group company Jackpot Game S.r.l. has acquired on 30 July 2015 business activity of operating two VLT slot casinos from the Italian VLT casino operator Pasquale Di Gaetano - Judica Concetta and sons sas. The purpose of the acquisition was to increase the market share in Italy. As a result of the completion of the transaction the Group owns 14 VLT slot casinos in Italy.
-
On 31 August 2015 Group company Kesklinna Hotelli OÜ and Swedbank AS concluded a loan agreement with the loan limit of EUR 25,000,000. Loan will be used for financing construction of the Hilton Tallinn Park hotel.
-
Olympic Entertainment Group AS has acquired a 30% holding in Italian subsidiary The Box S.r.l. increasing its holding to 100%.
-
On 16 December 2015 Olympic Entertainment Group AS has acquired a 100% holding in Lithuanian sports-betting operator UAB Orakulas. With this transaction the Group has increased its market share on Lithuanian gaming market. As a result of the transaction Group has additional 35 betting shops in Lithuania.
-
On 1 December 2015 Group’s subsidiary Olympic Casino Eesti AS has signed the agreement to acquire 100% shareholding in Estonian casino operator AS MC Kasiinod, which is also the 100% owner of the subsidiary OÜ Oma & Hea, which is providing casino bar services. The purpose of the acquisition is to increase the market share in Estonia. As a result of the completion of the transaction on 16 February 2016 Group owns since then 24 casinos in Estonia.
-
On 23 December 2015 Olympic Entertainment Group AS has signed an agreement to acquire a 100% shareholding in Polish enterprise Ultramedia sp. z o.o. The aim of the transaction is to create a legal platform for expanding Group’s activities in Poland.
-
Olympic Entertainment Group AS has acquired 8.6% of Olympic Casino Latvia SIA shares from OEG group company Siquia Holding B.V. As a result of acquisition the entire 100% share capital of Olympic Casino Latvia SIA belongs now directly to Olympic Entertainment Group AS. The aim of the acquisition was reorganisation of the group structure.
The Group’s consolidated sales revenues by segments:
|
‘000€ |
Q4 2015 |
Q4 2014 |
Change |
|
12M 2015 |
12M 2014 |
Change |
|
Estonia |
9,375 |
8,829 |
6.2% |
|
35,566 |
33,079 |
7.5% |
|
Latvia |
15,364 |
13,268 |
15.8% |
|
56,015 |
47,825 |
17.1% |
|
Lithuania |
6,037 |
5,969 |
1.1% |
|
22,016 |
22,297 |
-1.3% |
|
Poland |
5,953 |
5,357 |
11.1% |
|
24,037 |
22,819 |
5.3% |
|
Slovakia |
4,620 |
4,146 |
11.4% |
|
16,346 |
15,796 |
3.5% |
|
Belarus |
148 |
448 |
-66.9% |
|
804 |
1,897 |
-57.6% |
|
Italy |
2,836 |
2,203 |
28.7% |
|
10,168 |
6,600 |
54.1% |
|
Malta |
267 |
0 |
- |
|
291 |
0 |
- |
|
Total |
44,600 |
40,220 |
10.9% |
|
165,243 |
150,313 |
9.9% |
Number of casinos by segment:
|
|
31 December 2015 |
31 December 2014 |
|
Estonia |
20 |
18 |
|
Latvia |
57 |
37 |
|
Lithuania |
19 |
16 |
|
Poland |
1 |
2 |
|
Slovakia |
7 |
7 |
|
Belarus |
2 |
6 |
|
Italy |
12 |
12 |
|
Malta |
1 |
0 |
|
Total |
119 |
98 |
Overview by markets
Estonia
The sales revenues of Estonian segment for 2015 amounted to EUR 35.6 million (+2.5 m€, +7.5%), EBITDA to EUR 6.0 million (-2.0 m€, -24.9%) and operating profit to EUR 4.1 million (-2.3 m€, -36.4%). Gaming revenue increased 6.5% y-o-y amounting to EUR 33.6 million.
At the end of 2015, there were 20 Olympic casinos with 817 slot machines, 20 electronic roulette terminals, 17 gaming tables and 21 tournament poker gaming tables operating in Estonia. As at 31 December 2015, the Estonian operations employed 504 people.
Latvia
The sales revenues of Latvian segment for 2015 amounted to EUR 56.0 million (+8.2 m€, +17.1%), EBITDA to EUR 26.3 million (+5.6 m€, +27.3%) and operating profit to EUR 23.3 million (+6.0 m€, +35.1%). Gaming revenue increased 17.4% y‑o‑y amounting to EUR 51.5 million.
At the end of 2015, there were 57 Olympic casinos with 1,519 slot machines, 19 gaming tables and 9 tournament poker gaming tables operating in Latvia. As at 31 December 2015, the Latvian operations employed 924 people.
Lithuania
The sales revenues of Lithuanian segment for 2015 amounted to EUR 22.0 million (-0.3 m€, -1.3%), EBITDA to EUR 3.3 million (-1.1 m€, -25.7%) and operating profit to EUR 2.1 million (-0.8 m€, -26.7%). Gaming revenue decreased 1.0% y-o-y amounting to EUR 20.8 million.
At the end of 2015, there were 19 Olympic casinos with 562 slot machines, 8 electronic roulette terminals, 64 gaming tables, 2 tournament poker gaming tables and 35 betting shops operating in Lithuania. As at 31 December 2015, the Lithuanian operations employed 840 people.
Poland
The sales revenues of Polish segment for 2015 amounted to EUR 24.0 million (+1.2 m€, +5.3%), EBITDA to EUR 3.2 million (+0.0 m€, +0.2%) and operating profit to EUR 2.6 million (+0.6 m€, +28.7%). Gaming revenue increased 5.3% y-o-y amounting to EUR 23.6 million.
At the end of 2015, there was 1 Olympic casino with 135 slot machines, 38 electronic roulette terminals, 25 gaming tables and 4 tournament poker gaming tables operating in Poland. As at 31 December 2015, the Polish operations employed 238 people.
Slovakia
The sales revenues of Slovak segment for 2015 amounted to EUR 16.3 million (+0.6 m€, +3.5%), EBITDA to EUR 0.9 million (+0.4 m€, +81.5%) and operating loss to EUR -0.2 million (+0.5 m€). Gaming revenue increased 3.3% y-o-y amounting to EUR 14.5 million.
At the end of 2015, there were 7 Olympic casinos with 283 slot machines, 38 electronic roulette terminals, 39 gaming tables and 19 tournament poker gaming tables operating in Slovakia. As at 31 December 2015, the Slovak operations employed 311 people.
Belarus
The sales revenues of Belarusian segment for 2015 amounted to EUR 0.8 million (-1.1 m€), EBITDA to EUR -0.3 million (+0.2 m€) and operating loss to EUR -0.4 million (+1.5 m€). Gaming revenue decreased 57.5% y‑o‑y amounting to EUR 0.8 million.
At the end of 2015, there were 2 Olympic casinos with 74 slot machines operating in Belarus. As at 31 December 2015, the Belarusian operations employed 48 people.
Italy
The sales revenues of Italian segment before deducting the gaming tax of Italy for 2015 amounted to EUR 22.0 million (+7.9 m€, +56.5%), EBITDA to EUR 0.6 million (+0.6 m€, +13,795.2%) and operating profit to EUR 0.2 million (+0.6 m€, ‑147.1%).
At the end of 2015, there were 12 VLT slot casinos with 426 slot machines operating in Italy. As at 31 December 2015, the Italian operations employed 69 people.
Malta
The sales revenues of Maltese segment for 2015 amounted to EUR 0.3 million, EBITDA to EUR -0.4 million and operating loss to EUR -0.4 million.
At the end of 2015, there was 1 casino with 285 slot machines, 18 electronic roulette terminals, 19 gaming tables and 10 tournament poker gaming tables operating in Malta. As at 31 December 2015, Maltese operations employed 184 people.
Financial position
As at 31 December 2015, the total assets of the Group amounted to EUR 162.3 million, up 28.6% or EUR 36.1 million compared to the same period a year ago.
Current assets totalled EUR 44.0 million or 27.1% of total assets, and non-current assets EUR 118.3 million or 72.9% of total assets. The liabilities amounted to EUR 39.5 million and equity to EUR 122.9 million. The largest liabilities included suppliers payables and advances (17.4 m€), tax liabilities (5.8 m€) and payables to employees (4.8 m€).
Investments
In 2015, the Group’s expenditures on property, plant and equipment totalled EUR 32.6 million (+14.3 m€, +78.1%), of which EUR 10.3 million was invested into new gaming equipment (+3.8 m€, +59.9%) and EUR 21.6 million (+10.4 m€, +92.8%) into construction of hotel and construction and reconstruction of casinos.
Cash flows
In 2015, the Group’s cash flows generated from operating activities amounted to EUR 37.1 million (+4.6 m€, +14.1%) and cash flows used in investing activities to EUR -34.5 million (-11.6 m€). Financing cash flows amounted to EUR ‑8.1 million (+6.1 m€). Net cash flows totalled EUR -5.5 million (-1.0 m€).
Staff
As at 31 December 2015, the Group employed 3,118 people, up by 453 y-o-y mostly due to expansion in Latvia, Lithuania and Malta.
In 2015, total personnel expenses amounted to EUR 43.8 million (+4.8 m€, +12.3%). In 2015, 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 801 thousand (EUR 793 thousand in 2014) and EUR 149 thousand (EUR 151 thousand in 2014), respectively.
Consolidated statement of financial position
|
(EUR thousands) |
31.12.2015 |
31.12.2014 |
|
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
34,710 |
40,117 |
|
Financial investments |
1,835 |
1,108 |
|
Receivables and prepayments |
5,537 |
3,276 |
|
Prepaid income tax |
551 |
483 |
|
Inventories |
1,366 |
1,163 |
|
Assets held for sale |
0 |
1,016 |
|
Total current assets |
43,999 |
47,163 |
|
|
|
|
|
Non-current assets |
|
|
|
Deferred tax assets |
801 |
1,398 |
|
Financial investments |
3,512 |
4,277 |
|
Other long-term receivables |
914 |
688 |
|
Investment property |
288 |
292 |
|
Property, plant and equipment |
58,877 |
34,368 |
|
Intangible assets |
53,942 |
38,045 |
|
Total non-current assets |
118,334 |
79,068 |
|
|
|
|
|
TOTAL ASSETS |
162,333 |
126,231 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities |
|
|
|
Borrowings |
292 |
253 |
|
Trade and other payables |
27,680 |
13,121 |
|
Income tax payable |
1,058 |
741 |
|
Provisions |
1,842 |
1,424 |
|
Total current liabilities |
30,872 |
15,539 |
|
|
|
|
|
Non-current liabilities |
|
|
|
Borrowings |
8,079 |
1,216 |
|
Deferred tax liability |
513 |
272 |
|
Total non-current liabilities |
8,592 |
1,488 |
|
|
|
|
|
TOTAL LIABILITIES |
39,464 |
17,027 |
|
|
|
|
|
EQUITY |
|
|
|
Share capital |
60,716 |
60,716 |
|
Share premium |
258 |
258 |
|
Statutory reserve capital |
3,574 |
2,495 |
|
Other reserves |
329 |
0 |
|
Translation reserves |
-1,156 |
-1,420 |
|
Retained earnings |
51,822 |
41,816 |
|
Total equity attributable to equity holders of the parent |
115,543 |
103,865 |
|
Non-controlling interest |
7,326 |
5,339 |
|
TOTAL EQUITY |
122,869 |
109,204 |
|
|
|
|
|
TOTAL LIABILITIES AND EQUITY |
162,333 |
126,231 |
Consolidated statement of comprehensive income
|
(EUR thousands) |
Q4 2015 |
Q4 2014 |
2015 |
2014 |
|
|
|
|
|
|
|
Income from gaming transactions |
41,614 |
37,600 |
154,933 |
141,077 |
|
Revenue |
2,986 |
2,620 |
10,310 |
9,236 |
|
Other income |
267 |
58 |
655 |
347 |
|
Total revenue and income |
44,867 |
40,278 |
165,898 |
150,660 |
|
|
|
|
|
|
|
Cost of materials, goods and services |
-1,020 |
-959 |
-3,710 |
-3,342 |
|
Other operating expenses |
-21,450 |
-19,421 |
-78,045 |
-71,507 |
|
Staff costs |
-11,556 |
-10,440 |
-43,776 |
-38,982 |
|
Depreciation, amortisation and impairment |
-2,176 |
-4,064 |
-8,131 |
-10,344 |
|
Change in the fair value of investment property |
20 |
-12 |
20 |
-12 |
|
Other expenses |
-566 |
-365 |
-874 |
-678 |
|
Total operating expenses |
-36,748 |
-35,261 |
-134,516 |
-124,865 |
|
|
|
|
|
|
|
Operating profit |
8,119 |
5,017 |
31,382 |
25,795 |
|
|
|
|
|
|
|
Interest income |
10 |
31 |
51 |
89 |
|
Interest expense |
-3 |
-8 |
-24 |
-28 |
|
Foreign exchange losses |
7 |
8 |
27 |
3 |
|
Other finance income and costs |
-4 |
-2 |
-9 |
-4 |
|
Total finance income and costs |
10 |
29 |
45 |
60 |
|
|
|
|
|
|
|
Profit from operating activities |
8,129 |
5,046 |
31,427 |
25,855 |
|
|
|
|
|
|
|
Income tax expense |
-1,446 |
-532 |
-4,342 |
-3,426 |
|
Net profit for the period |
6,683 |
4,514 |
27,085 |
22,429 |
|
Attributable to equity holders of the parent company |
6,115 |
4,376 |
25,719 |
21,597 |
|
Attributable to non-controlling interest |
568 |
138 |
1,366 |
832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
Currency translation differences |
46 |
-323 |
264 |
-216 |
|
Total comprehensive profit for the period |
6,729 |
4,191 |
27,349 |
22,213 |
|
Attributable to equity holders of the parent company |
6,161 |
4,053 |
25,983 |
21,381 |
|
Attributable to non-controlling interest |
568 |
138 |
1,366 |
832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share* |
4.0 |
2.9 |
16.9 |
14.2 |
|
Diluted earnings per share* |
4.0 |
2.9 |
16.9 |
14.2 |
* euro cents
Madis Jääger
CEO
Olympic Entertainment Group AS
Tel + 372 667 1250
E-mail madis.jaager@oc.eu
http://www.olympic-casino.com
|