OREANDA-NEWS. Key performance indicators of the Olympic Entertainment Group
    H1 2016 H1 2015 H1 2014
Revenues m€ 92.4 81.0 72.2
Gaming tax m€ 17.1 15.5 14.3
EBITDA m€ 17.1 18.4 16.7
EBIT m€ 12.0 14.5 12.6
Net profit m€ 9.8 11.8 10.3
EBITDA margin % 18.5 22.7 23.1
Operating margin % 13.0 17.9 17.5
Net margin % 10.5 14.6 14.3
         
Assets m€ 188.9 125.0 115.4
Equity m€ 108.8 106.8 97.8
ROE % 9.2 12.2 10.8
ROA % 5.8 9.8 8.8
Current ratio times 0.8 2.2 2.3
         
Casinos at end of period # 125 96 93
Casino floor area at end of period m2 40,122 30,263 31,060
Employees # 3,260 2,653 2,593
         
Slot machines at end of period # 4,159 3,275 3,072
Electronic roulette terminals at the end of period # 148 104 102
Gaming tables at end of period # 198 182 190
Tournament poker gaming tables at the end of period # 63 44 32

 

Key developments of the Group during the first half-year of 2016

  • The Group’s consolidated sales revenues for H1 2016 amounted to EUR 92.0 million, up 14.0% or EUR 11.3 million y?o?y.
  • Gaming revenues accounted for 93.6% (86.1 m€) and other revenues for 6.4% (5.9 m€) of the Group’s consolidated sales revenues for H1 2016. A year before the revenue split was 94.0% (75.9 m€) and 6.0% (4.8 m€), respectively.
  • The Group’s consolidated EBITDA for H1 2016 amounted to EUR 17.1 million, a decline of 6.9% from EUR 18.4 million a year before. The Group’s consolidated operating profit decreased EUR 2.4 million (-16.9%) to EUR 12.0 million.
  • The Group’s consolidated net profit attributable to equity holders of the parent company for H1 2016 totalled EUR 9.8 million compared to EUR 11.8 million a year ago.
  • Group company Baina Investments Sp. z o.o. signed the agreement on 14 January 2016 to acquire a 20% holding in the Polish subsidiary Casino Polonia-Wroc?aw Sp. z o.o., increasing Group holding to 100%.
  • After receiving an approval from the Estonian Competition Authority, on 16 February 2016 Group completed the acquisition of 100% shareholding in Estonian casino operator AS MC Kasiinod, which is also the 100% owner of the subsidiary O? Oma & Hea, which is providing casino bar services. As a result of the completion of the transaction Group owns 24 casinos in Estonia.
  • The Estonian subsidiaries of Group, Olympic Casino Eesti AS and the casino operating company AS MC Kasiinod which was acquired in winter of 2016, concluded a merger agreement on 21 March 2016. The merger was finalised in May 2016 and during the course of the merger AS MC Kasiinod merged with Olympic Casino Eesti AS.
  • The Slovak subsidiaries of Group, Olympic Casino Slovakia S.r.o. and Olympic F&B S.r.o., concluded a merger agreement on 22 March 2016. The merger was finalised in April 2016 and during the course of the merger Olympic F&B S.r.o. merged with Olympic Casino Slovakia S.r.o.
  • On 31 March 2016 Group decided to liquidate its Dutch subsidiary Siquia Holding B.V., which does not have any business activity. The area of activity for the subsidiary was holding activities. The liquidation was finalised on 30 June 2016.
  • The Latvian subsidiaries of Group, Olympic Casino Latvia SIA AS and the casino operating company SIA Garkalns which was acquired in autumn 2015, concluded a merger agreement on 20 May 2016. The merger will be finalised within the current year and during the course of the merger SIA Garkalns will be merged with Olympic Casino Latvia SIA.
  • On 1 June 2016 Group opened a new hotel and entertainment complex in Tallinn investing over 45 million euros in the building that accommodates the Baltic's first Hilton and the flagship casino of OEG.
  • The general meeting of shareholders held on 16 June 2016 decided to pay out dividends in amount of EUR 22,768,680.90 (EUR 0.15 per share), of which EUR 0.10 per share was paid out to shareholders on 15 July 2016 and EUR 0.05 will be paid out to shareholders on 14 October 2016.

 

The Group’s consolidated sales revenues by segments:

‘000€ Q2 2016 Q2 2015 Change H1 2016 H1 2015 Change
Estonia 10,592 9,068 16.8% 20,123 17,412 15.6%
Latvia 15,205 13,959 8.9% 31,229 26,052 19.9%
Lithuania 6,003 4,923 21.9% 12,291 10,789 13.9%
Poland 4,656 6,843 -32.0% 9,229 13,339 -30.8%
Slovakia 4,791 4,076 17.5% 8,714 7,806 11.6%
Belarus 64 203 -68.4% 186 487 -61.9%
Italy 2,759 2,525 9.3% 5,465 4,825 13.3%
Malta 2,552 0 N/A 4,738 0 N/A
Total 46,622 41,597 12.1% 91,975 80,710 14.0%

 

Number of casinos by segment:

  30 June 2016 30 June 2015
Estonia 24 20
Latvia 57 37
Lithuania 19 17
Poland 1 1
Slovakia 8 7
Belarus 1 2
Italy 14 12
Malta 1  
Total 125 96

 

The Group’s consolidated operating expenses for H1 2016 amounted to EUR 80.4 million, up 20.9% or EUR 13.9 million y?o?y. The growth was highest in personnel expenses (+4.2 m€, +18.9%), gaming tax (+1.7 m€, +10.9%), marketing expenses (+1.7 m€, +32.5%), amortisation and depreciation costs (+1.2 m€, +29.9%) and rent expenses (+1.2 m€, +18.5%). Personnel expenses (26.4 m€) and gaming tax (17.1 m€) represented the largest cost items accounting for 54.1% of total operating expenses.

 

Overview by markets

Estonia

The sales revenues of Estonian segment for H1 2016 amounted to EUR 20.1 million (+2.7 m€, +15.6%), EBITDA to EUR 2.1 million (-1.0 m€, -32.3%) and operating profit to EUR 0.9 million (-1.3 m€, -59.5%). Gaming revenue increased 13.2% y-o-y amounting to EUR 18.8 million.

At the end of H1 2016, there were 24 Olympic casinos with 973 slot machines, 26 electronic roulette terminals, 22 gaming tables and 17 poker tournament tables operating in Estonia. As at 30 June 2016 Estonian operations employed 667 people.

Latvia

The sales revenues of Latvian segment for H1 2016 amounted to EUR 31.2 million (+5.2 m€, +19.9%), EBITDA to EUR 12.6 million (+0.8 m€, +6.7%) and operating profit to EUR 10.8 million (+0.5 m€, +4.7%). Gaming revenue increased 19.3% y?o?y amounting to EUR 28.6 million.

At the end of H1 2016, there were 57 Olympic casinos with 1,511 slot machines, 8 electronic roulette terminals, 19 gaming tables and 9 poker tournament tables operating in Latvia. As at 30 June 2016 Latvian operations employed 932 people.

Lithuania

The sales revenues of Lithuanian segment for H1 2016 amounted to EUR 12.3 million (+1.5 m€, +13.9%), EBITDA to EUR 0.9 million (-0.7 m€, -42.6%) and operating profit to EUR 0.1 million (-0.9 m€, -87.0%). Gaming revenue increased 14.7% y-o-y amounting to EUR 11.7 million.

At the end of H1 2016, there were 19 Olympic casinos with 536 slot machines, 8 electronic roulette terminals, 62 gaming tables and 2 poker tournament tables operating in Lithuania. As at 30 June 2016 Lithuanian operations employed 791 people.

Poland

The sales revenues of Polish segment for H1 2016 amounted to EUR 9.2 million (-4.1 m€, -30.8%), EBITDA to EUR 0.7 million (-1.0 m€, -57.6%) and operating profit to EUR 0.5 million (-0.8 m€, -60.0%). Gaming revenue decreased 30.9% y-o-y amounting to EUR 9.1 million.

At the end H1 2016, there was 1 Olympic casino with 64 slot machines, 46 electronic roulette terminals, 32 gaming tables and 4 poker tournament tables operating in Poland. As at 30 June 2016 Polish operations employed 245 people.

Slovakia

The sales revenues of Slovak segment for H1 2016 amounted to EUR 8.7 million (+0.9 m€, +11.6%), EBITDA to EUR 1.0 million (+0.9 m€, +1081.5%) and operating profit to EUR 0.4 million (+0.8 m€). Gaming revenue increased 13.3% y-o-y amounting to EUR 7.8 million.

At the end of H1 2016, there were 8 Olympic casinos with 292 slot machines, 42 electronic roulette terminals, 44 gaming tables and 21 poker tournament tables operating in Slovakia. As at 30 June 2016 Slovak operations employed 334 people.

Belarus

The sales revenues of Belarus segment for H1 2016 amounted to EUR 0.2 million (-0.3 m€, -61.9%), EBITDA to EUR -0.1 million (+0.0 m€, -2.3%) and operating loss to EUR -0.1 million (+0.0 m€, -2.1%). Gaming revenue decreased 61.5% y?o?y amounting to EUR 0.2 million.

At the end of H1 2016, there were 1 Olympic casinos with 33 slot machines operating in Belarus. As at 30 June 2016 Belarus operations employed 6 people.

Italy

The sales revenues of Italian segment before deducting the gaming tax of Italy for H1 2016 amounted to EUR 12.7 million (+2.1 m€, +19.6%), EBITDA to EUR 0.4 million (+0.0 m€, +4.5%) and operating profit to EUR 0.2 million (+0.1 m€, +53.2%).

At the end of H1 2016, there were 14 VLT slot casinos with 465 slot machines operating in Italy. As at 30 June 2016 Italian operations employed 78 people.

Malta

The sales revenues of Maltese segment for H1 2016 amounted to EUR 4.7 million, EBITDA to EUR -0.3 million and operating loss to EUR 0.8 million.

At the end of H1 2016, there was 1 Olympic casino with 285 slot machines, 18 electronic roulette terminals, 19 gaming tables and 10 poker tournament tables operating in Malta. As at 30 June 2016 Maltese operations employed 207 people.