OREANDA-NEWS. OEG announces consolidated unaudited results for Q4 and 12M.

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 (m©ч) 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 m©ч. At the end of Q4 2011, the number of the Group’s casinos was 61 and total floor area was 24,014 m©ч.

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.