Key performance indicators of the Group
| Q1 2018 | Q1 2017 | Q1 2016 | ||
| Revenue before gaming taxes | m€ | 52.4 | 51.5 | 48.9 |
| Gaming tax | m€ | -11.2 | -11.2 | -11.3 |
| Net revenue | m€ | 41.2 | 40.3 | 37.6 |
| Total net revenue and income | m€ | 41.2 | 40.3 | 37.9 |
| EBITDA | m€ | 10.9 | 9.8 | 9.0 |
| EBIT | m€ | 7.6 | 6.8 | 6.5 |
| Net profit | m€ | 7.4 | 5.6 | 5.5 |
| EBITDA margin | % | 26.4 | 24.4 | 23.8 |
| Operating margin | % | 18.5 | 16.8 | 17.3 |
| Net margin | % | 18.0 | 13.9 | 14.5 |
| Assets | m€ | 176.2 | 158.4 | 169.9 |
| Equity | m€ | 152.7 | 135.6 | 127.2 |
| ROE | % | 5.1 | 4.7 | 4.3 |
| ROA | % | 4.3 | 3.6 | 3.3 |
| Current ratio | times | 3.1 | 2.4 | 1.4 |
| Casinos at end of period | # | 115 | 120 | 124 |
| Casino floor area at end of period | m2 | 36,960 | 39,083 | 38,830 |
| Betting points at the end of period | # | 25 | 31 | 33 |
| Betting points floor area at end of period | m2 | 689 | 838 | 964 |
| Employees | # | 3,031 | 3,023 | 3,201 |
| Slot machines at end of period | # | 4,011 | 4,100 | 4,183 |
| Electronic roulette terminals at the end of period | # | 101 | 108 | 142 |
| Gaming tables at end of period | # | 161 | 167 | 183 |
| Tournament poker gaming tables at the end of period | # | 63 | 66 | 64 |
Key developments of the Group during Q1 of 2018:
- The Group’s consolidated total revenue before gaming taxes for Q1 2018 amounted to EUR 52.4 million, up 1.8% or EUR 0.9 million y‑o‑y.
- Total gaming revenue before gaming taxes accounted for 90.0% (47,2 m€) and other revenues for 10.0% (5.3 m€) of the Group’s consolidated total sales revenues for Q1 2018. A year before the revenue split was 91.3% (47.0 m€) and 8.7% (4.5 m€), respectively.
- The Group’s consolidated EBITDA for Q1 2018 amounted to EUR 10.9 million, a growth of 10.6% from EUR 9.8 million a year before. The Group’s consolidated operating profit increased EUR 0.9 million (12.7%) to EUR 7.6 million.
- The Group’s consolidated net profit attributable to equity holders of the parent company for Q1 2018 totalled EUR 7.3 million compared to EUR 6.0 million a year ago.
- On 19 February 2018 Group established and registered the company Olybet Italia S.r.l. in Italy. The aim of establishing the subsidiary is to develop the legal platform for the expansion of Group’s activities in the business of remote gambling.
- On 19 March 2018 Group announced of the contemplated exit by major shareholders, voluntary takeover offer and business combination agreement. On 19 March 2018, two major shareholders of the Group OÜ HansaAssets (a company under the sole control of Mr Armin Karu, the former Chairman of the Supervisory Board of OEG) and OÜ Hendaya Invest (a company under the sole control of Mr Jaan Korpusov, the former member of the Supervisory Board of OEG), entered into a share sale and purchase agreement with Odyssey Europe AS, under which OÜ HansaAssets and OÜ Hendaya Invest sold and transferred all the shares of OEG held by them. The purchase price of the shares was EUR 1.9 per one share. The transactions were settled by the selling shareholders tendering their shares in the voluntary takeover offer. On 4 April 2018 the Buyer launched a voluntary takeover offer to all the shareholders of OEG for the same price of EUR 1.9 per one share. The voluntary takeover offer ended on 2 May 2018. The settlement date of the voluntary takeover offer was 10 May 2018.
- On 29 March 2018 Group has announced that it has received the decision of the District Administrative Court in Riga regarding one of the casinos located in Riga (Marijas street 2). The court ruled in favour of Riga City Council. According to the Riga City Council decision the casino has to be closed in October 2022. OEG has appealed the decision to higher level court.
Key developments after the balance sheet date:
- On 10 May 2018 the voluntary takeover offer was settled, after which Novalpina Capital Partners I GP S.à r.l. informed OEG that on 10 May 2018 the shareholding of Odyssey Europe AS in OEG increased above 2/3. As of 10 May 2018 Odyssey Europe AS held 135,024,430 shares of OEG, representing 88.95% of all the votes represented by the shares of OEG. Novalpina Capital Partners I GP S.à r.l. is the ultimate parent of Odyssey Europe AS.
- On 11 May 2018 the annual general meeting of shareholders was held, where in addition to regular agenda items the delisting of the Company’s shares from Nasdaq Tallinn Stock Exchange was approved, a new supervisory board was elected and a decision not to pay dividends was taken.
The Group’s consolidated total revenue before gaming taxes by segments:
| ‘000€ | Q1 2018 | Q1 2017 | Change | |
| Estonia | 14,672 | 12,399 | 18.3 | % |
| Latvia | 16,297 | 16,542 | -1.5 | % |
| Lithuania | 6,004 | 7,032 | -14.6 | % |
| Slovakia | 3,984 | 4,501 | -11.5 | % |
| Italy | 8,195 | 7,915 | 3.5 | % |
| Malta | 3,287 | 3,117 | 5.4 | % |
| Total | 52,439 | 51,506 | 1.8 | % |
Number of casinos by segment:
| 31 March 2018 | 31 March 2017 | |
| Estonia | 24 | 24 |
| Latvia | 53 | 54 |
| Lithuania | 17 | 18 |
| Slovakia | 6 | 8 |
| Italy | 14 | 15 |
| Malta | 1 | 1 |
| Total | 115 | 120 |
Overview by markets
Estonia
Total revenue before gaming taxes of Estonian segment for Q1 of 2018 amounted to EUR 14.7 million (+2.3 m€, +18.3%), EBITDA to EUR 3.2 million (+1.8 m€, +123.0%) and operating profit to EUR 2.3 million (+1.7 m€, +307.0%). Gaming revenue before gaming taxes increased 15.5% y-o-y amounting to EUR 11.9 million.
At the end of March 2018, there were 24 Olympic casinos with 988 slot machines, 37 electronic roulette terminals, 24 gaming tables and 24 poker tournament tables operating in Estonia. As at 31 March 2018 Estonian operations employed 738 people.
Latvia
Total revenue before gaming taxes of Latvian segment for Q1 of 2018 amounted to EUR 16.3 million (-0.2 m€, -1.5%), EBITDA to EUR 5.9 million (-0.9 m€, -13.8%) and operating profit to EUR 4.8 million (-1.1 m€, -18.0%). Gaming revenue before gaming taxes decreased 2.1% y‑o‑y amounting to EUR 14.8 million.
At the end of March 2018, there were 53 Olympic casinos with 1,457 slot machines, 8 electronic roulette terminals, 24 gaming tables and 9 poker tournament tables operating in Latvia. As at 31 March 2018 Latvian operations employed 922 people.
Lithuania
Total revenue before gaming taxes of Lithuanian segment for Q1 of 2018 amounted to EUR 6.0 million (-1.0 m€, -14.6%), EBITDA to EUR 0.7 million (-0.4 m€, -37.8%) and operating profit to EUR 0.2 million (-0.4 m€, -63.7%). Gaming revenue before gaming taxes decreased 15.6% y-o-y amounting to EUR 5.6 million.
At the end of March 2018, there were 17 Olympic casinos with 507 slot machines, 8 electronic roulette terminals, 53 gaming tables and 2 poker tournament tables and 25 betting shops operating in Lithuania. As at 31 March 2018 Lithuanian operations employed 742 people.
Slovakia
Total revenue before gaming taxes of Slovak segment for Q1 of 2018 amounted to EUR 4.0 million (-0.5 m€, -11.5%), EBITDA to EUR 0.4 million (-0.1 m€, -15.0%) and operating profit to EUR 0.1 million (-0.1 m€, -40.3%). Gaming revenue before gaming taxes decreased 13.2% y-o-y amounting to EUR 3.5 million.
At the end of March 2018, there were 6 Olympic casinos with 251 slot machines, 30 electronic roulette terminals, 39 gaming tables and 18 poker tournament tables operating in Slovakia. As at 31 March 2018 Slovak operations employed 332 people.
Italy
Total revenue before gaming taxes of Italian segment for Q1 of 2018 amounted to EUR 8.2 million (+0.3 m€, +3.5%), EBITDA to EUR 0.7 million (+0.1 m€, +10.4%) and operating profit to EUR 0.5 million (+0.05 m€, +11.6%). Gaming revenue before gaming taxes increased 3.6% y-o-y amounting to EUR 8.1 million.
At the end of March 2018, there were 14 VLT slot casinos with 523 slot machines operating in Italy. As at 31 March 2018 Italian operations employed 87 people.
Malta
Total revenue before gaming taxes of Maltese segment for Q1 of 2018 amounted to EUR 3.3 million (+0.2 m€, +5.5%), EBITDA to EUR 0.1 million (+0.6 m€) and operating loss to EUR 0.2 million (+0.6 m€). Gaming revenue before gaming taxes increased 5.5% y-o-y amounting to EUR 3.2 million.
At the end of March 2018, there was 1 casino with 285 slot machines, 18 electronic roulette terminals, 21 gaming tables and 10 poker tournament tables operating in Malta. As at 31 March 2018 Maltese operations employed 210 people.
Financial position
As at 31 March 2018, the total assets of the Group amounted to EUR 176.2 million, up 11.2% or EUR 17.8 million compared to the same period a year ago.
Current assets totalled EUR 72.0 million or 40.9% of total assets, and non-current assets EUR 104.2 million or 59.1% of total assets. The liabilities amounted to EUR 23.5 million and equity to EUR 152.7 million. The largest liabilities included suppliers payables and advances (7.5 m€), tax liabilities (6.1 m€) and payables to employees (6.0 m€).
Investments
Within Q1 of 2018, the Group’s expenditures on property, plant and equipment totalled EUR 2.4 million (+0.8 m€, +52.8%), of which EUR 2.3 million was invested into construction and reconstruction of casinos and EUR 0.1 million into new gaming equipment.
Cash flows
Group’s Q1 2018 cash flows generated from operating activities amounted to EUR 10.1 million (-0.01 m€) and cash flows used in investing activities to EUR -4.2 million (-1.7 m€). Financing cash flows amounted to EUR 0 million (+0.03 m€). Net cash flows totalled EUR 5.9 million (-1.7 m€).
Staff
As at 31 March 2018 Group employed 3,031 people, up by 8 y-o-y.
Within Q1 of 2018, total personnel expenses amounted to EUR 14.0 million (+0.5 m€, +3.9%). For Q1 of 2018, 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 316 thousand (EUR 270 thousand for Q1 of 2017) and EUR 37 thousand (EUR 37 thousand for Q1 of 2017), respectively.
Consolidated statement of financial position
| (EUR thousands) | 31.03.2018 | 31.12.2017 | |
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | 64,430 | 58,482 | |
| Financial investments | 161 | 919 | |
| Receivables and prepayments | 4,716 | 4,554 | |
| Prepaid income tax | 1,039 | 286 | |
| Inventories | 1,660 | 1,658 | |
| Total current assets | 72,006 | 65,899 | |
| Non-current assets | |||
| Deferred tax assets | 527 | 507 | |
| Financial investments | 1,137 | 457 | |
| Other long-term receivables and prepayments | 3,963 | 3,957 | |
| Investment property | 343 | 323 | |
| Property, plant and equipment | 48,404 | 49,046 | |
| Intangible assets | 49,836 | 49,935 | |
| Total non-current assets | 104,210 | 104,225 | |
| TOTAL ASSETS | 176,216 | 170,124 | |
| LIABILITIES AND EQUITY | |||
| Current liabilities | |||
| Trade and other payables | 21,150 | 22,082 | |
| Income tax payable | 635 | 612 | |
| Provisions | 1,366 | 1,780 | |
| Total current liabilities | 23,151 | 24,474 | |
| Non-current liabilities | |||
| Other long-term payables | 318 | 309 | |
| Total non-current liabilities | 318 | 309 | |
| TOTAL LIABILITIES | 23,469 | 24,783 | |
| EQUITY | |||
| Share capital | 60,716 | 60,716 | |
| Share premium | 252 | 252 | |
| Treasury shares | -53 | -53 | |
| Statutory reserve capital | 6,325 | 6,325 | |
| Other reserves | 574 | 566 | |
| Translation reserves | 11 | 19 | |
| Retained earnings | 78,507 | 71,209 | |
| Total equity attributable to equity holders of the parent | 146,332 | 139,034 | |
| Non-controlling interest | 6,415 | 6,307 | |
| TOTAL EQUITY | 152,747 | 145,341 | |
| TOTAL LIABILITIES AND EQUITY | 176,216 | 170,124 |
Consolidated statement of comprehensive income
| (EUR thousands) | Q1 2018 | Q1 2017 | ||
| Gross gaming revenue | 47,185 | 47,028 | ||
| Other revenue | 5,254 | 4,478 | ||
| Total revenue before gaming taxes | 52,439 | 51,506 | ||
| Gaming taxes | -11,239 | -11,210 | ||
| Net revenue | 41,200 | 40,296 | ||
| Other income | 13 | 10 | ||
| Total net revenue and income | 41,213 | 40,306 | ||
| Cost of materials, goods and services | -1,444 | -1,462 | ||
| Other operating expenses | -14,909 | -15,512 | ||
| Staff costs | -13,972 | -13,448 | ||
| Depreciation, amortisation and impairment | -3,245 | -3,065 | ||
| Other expenses | -29 | -64 | ||
| Total operating expenses | -33,599 | -33,551 | ||
| Operating profit | 7,614 | 6,755 | ||
| Interest income | 2 | 4 | ||
| Foreign exchange losses | -12 | -8 | ||
| Other finance income and costs | -2 | 0 | ||
| Total finance income and costs | -12 | -4 | ||
| Profit before income tax | 7,602 | 6,751 | ||
| Income tax expense | -196 | -1,135 | ||
| Net profit for the period | 7,406 | 5,616 | ||
| Attributable to equity holders of the parent company | 7,298 | 6,010 | ||
| Attributable to non-controlling interest | 108 | -394 | ||
| Other comprehensive income | ||||
| Items that may be subsequently reclassified to profit or loss | ||||
| Currency translation differences | -8 | 37 | ||
| Total comprehensive profit for the period | 7,398 | 5,653 | ||
| Attributable to equity holders of the parent company | 7,290 | 6,047 | ||
| Attributable to non-controlling interest | 108 | -394 | ||
| Basic earnings per share* | 4.8 | 4.0 | ||
| Diluted earnings per share* | 4.8 | 4.0 |
* euro cents
Madis Jääger
CEO
Olympic Entertainment Group AS
Tel + 372 667 1250
E-mail madis.jaager@oc.eu
http://www.olympic-casino.com
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