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Estonia – Olympic continues to grow its revenues in the first half of 2014

By Phil - 1 September 2014

Olympic Entertainment saw its first half revenues increase by seven per cent to 72m, with Italy, Latvia, and Lithuania countering tough market conditions in Poland and Belarus.

Gaming revenues accounted for 94 per cent, €67.7m, and other revenues for six per cent, €4.3 of the group’s consolidated sales revenues for the first half of 2014. A year before the revenue split was 93.3 per cent and 6.7 per cent, respectively.

The Group’s consolidated EBITDA for H1 2014 amounted to €16.7m, a growth of 0.2 per cent from €16.7m a year before. At the same time, the group’s consolidated operating profit increased € 0.2m, up 1.4 per cent to €12.6m.

The sales revenues of Estonian segment for H1 2014 amounted to €16.2m, down €0.1m, EBITDA to €3.9m and operating profit to €3m. Gaming revenue increased 3.8 per cent year on year, amounting to €15.5m.
The market share of Olympic Casino Eesti AS in the Estonian land-based gaming market was 55 per cent in Q2 2014, compared to 56 per cent a year ago. The total Estonian gaming market increased by six per cent as compared to the H1 2013. At the end of H1 2014, there were 18 Olympic casinos with 737 slot machines and 19 gaming tables operating in Estonia.

The sales revenues of Latvian segment for H1 2014 amounted to €21.7m, up 32 per cent, EBITDA to €8.3m, up1.2 m and operating profit to €6.8m, up 14.4 per cent. Gaming revenue increased 32.4 per cent year on year amounting to €19.9m.

The market share of Olympic Casino Latvia SIA in the Latvian gaming market was 23 per cent in Q2 2014, compared to 21 per cent a year ago. Total Latvian gaming market increased by right per cent as compared to the H1 2013.

As at the end of H1 2014, there were 38 Olympic casinos with 1,066 slot machines and 18 gaming tables operating in Latvia.

The sales revenues of Lithuanian segment for H1 2014 amounted to €10.7m, up 6.7 per cent, EBITDA to €2.1m, up 5.8 per cent and operating profit to €1.6m, up 30.1 per cent. Gaming revenue increased 6.6 per cent year on year amounting to €10.1m.

As at the end of H1 2014, there were 12 Olympic casinos with 428 slot machines and 63 gaming tables operating in Lithuania.

The sales revenues of Polish segment for H1 2014 amounted to €12.2m, down 10.1 per cent with EBITDA to €1.8m, down 32.5 per cent and operating profit to €1.5m, down 28.5 per cent.
As at the end of H1 2014, there were two Olympic casinos with 215 slot machines and 39 gaming tables operating in Poland.

The sales revenues of Slovak segment for H1 2014 amounted to €7.7m, up 0.4 per cent, EBITDA to €0.6m, down 41.4 per cent and operating profit to €0m, down 90.6 per cent. Gaming revenue decreased 0.9 per cent year on year amounting to €6.9m.

As at the end of H1 2014, there were six Olympic casinos with 269 slot machines and 53 gaming tables operating in Slovakia.

The sales revenues of Belarusian segment for H1 2014 amounted to €1m, down 23 per cent, EBITDA to €0.2m, down 398 per cent and operating profit to €-0.2m, down 1,936.8 per cent. Gaming revenue decreased 22.2 per cent year on year, amounting to €0.9m.

As at the end of H1 2014, there were six Olympic casinos with 245 slot machines operating in Belarus..
The sales revenues of Italian segment before deducting the gaming tax of Italy for H1 2014 amounted to €5.2m, up 40.2 per cent, EBITDA to €0.2m, up 10.5 per cent and operating profit to €0.1m, up 23.8 per cent.
In January 2014 Olympic Entertainment Group AS acquired a 100 per cent shareholding in Slovak VLT slot casino operator WINWIN Slovakia, renamed later as OlyBet Slovakia, and has opened its first VLT casino on Slovak market during the second quarter of 2014.

In April 2014 Olympic Entertainment Group AS increased to 70 per cent its holding in The Box, a company that manages operations in Italy, which in turn has acquired a 100 per cent holding in Slottery S.r.l. As a result of this transaction at the end of H1 2014, there were 11 VLT slot casinos with 377 slot machines operating in Italy. In June 2014, the Italian operations employed 57 people.

In May 2014 Olympic Entertainment Group AS has adopted a decision to restructure its Latvian subsidiaries, which leaded to conversion of Olympic Casino Latvia SIA share capital into euros and its increase. It was also decided to merge OEG Latvian subsidiries Olympic Casino Latvia SIA and Altea SIA. The merger process will take 10 months.

Most recently, the Latvian subsidiaries of OEG, Olympic Casino Latvia SIA and the casino operating company Altea SIA which was acquired in the summer of 2013, have concluded a merger agreement on 22.08.2014. The merger will be finalised within the current year and during the course of the merger Altea SIA will merge with Olympic Casino Latvia SIA. After the merger has been completed the group will carry on operating the casinos only through Olympic Casino Latvia SIA. The aim of the merger is the adjustment of the group’s structure.

Madis Jääger, CEO of Olympic Entertainment Group, said: “The merger of the subsidiaries has no direct influence on the economic activities of OEG Group. The members of the management and supervisory boards of OEG have no personal interest in the transaction.”

Olympic has also notified the Warsaw Stock Exchange that it has submitted an application for admission and introduction to trading on Warsaw Stock Exchange of the 461,701 new ordinary shares of the company.