Press Releases

OEG: Consolidated unaudited results for Q2 and 6 months of 2018

Published

6 years ago

July 26, 2018

George Miller

OEG: Consolidated unaudited results for Q2 and 6 months of 2018

Reading Time: 9 minutes

Key performance indicators of the Group

		6M 2018	6M 2017	6M 2016
Revenue before gaming taxes	m€	106.6	104.4	99.2
Gaming tax	m€	-22.9	-21.6	-22.9
Net revenue	m€	83.8	82.8	76.3
Total net revenue and income	m€	83.9	82.8	76.8
EBITDA	m€	21.7	20.9	17.1
EBIT	m€	15.2	14.7	12.0
Net profit	m€	14.7	12.6	10.1

EBITDA margin	%	25.9	25.3	22.5
Operating margin	%	18.1	17.8	15.8
Net margin	%	17.6	15.2	13.3

Assets	m€	183.2	150.1	188.9
Equity	m€	160.2	127.2	108.8
ROE	%	9.6	10.4	8.9
ROA	%	8.3	8.3	5.8
Current ratio	times	3.4	2.0	0.8

Casinos at end of period	#	115	117	125
Casino floor area at end of period	m²	37,389	38,784	39,223
Betting points at the end of period	#	25	30	34
Betting points floor area at end of period	m²	690	846	899
Employees	#	3,031	3,059	3,260

Slot machines at end of period	#	4,021	4,098	4,159
Electronic roulette terminals at the end of period	#	109	116	148
Gaming tables at end of period	#	156	165	198
Tournament poker gaming tables at the end of period	#	63	66	63

Key developments of the Group during 6 months of 2018:

The Group’s consolidated total revenue before gaming taxes for 6 months of 2018 amounted to EUR 106.6 million, up 2.2% or EUR 2.3 million y‑o‑y.
Total gaming revenue before gaming taxes accounted for 89.5% (95.5 m€) and other revenues for 10.5% (11.2 m€) of the Group’s consolidated total sales revenues for 6 months of 2018. A year before the revenue split was 90.4% (94.3 m€) and 9.6% (10.0 m€), respectively.
The Group’s consolidated EBITDA for 6 months of 2018 amounted to EUR 21.7 million, a growth of 3.7% from EUR 20.9 million a year before. The Group’s consolidated operating profit increased EUR 0.4 million (3.0%) to EUR 15.2 million.
The Group’s consolidated net profit attributable to equity holders of the parent company for 6 months of 2018 totalled EUR 14.1 million compared to EUR 12.8 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 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 appealed the decision to higher level court.
On 7 May 2018 Group announced that it has received the decision of the District Administrative Court in Riga regarding one of the casinos located in Riga (Raina blv 15). 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 appealed the decision to higher level court.
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. At 30 June 2018 Odyssey Europe AS held 135,604,521 shares of OEG (89.34% 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.
On 15 May 2018 the management board of OEG submitted the application for the immediate and unconditional termination of listing of OEG shares to the Nasdaq Tallinn Listing and Surveillance Committee. The Listing and Surveillance Committee of Nasdaq Tallinn Stock Exchange decided on 31 May 2018 not to approve the application of OEG and to refuse to terminate the listing/trading in shares on Baltic Main List before the takeover of the shares. OEG filed a claim with the Court of Arbitration of the Nasdaq Tallinn Stock Exchange to appeal the resolution of the Listing and Surveillance Committee.
On 25 May 2018 Group announced that it has received the decision of the District Administrative Court in Riga regarding one of the casinos located in Riga (Pragas street 1). 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 appealed the decision to higher level court.
On 7 June 2018 Regional Court in Bratislava overturned the Bratislava City Council decision to ban gambling operations in Bratislava as of 1 May 2017, in a way that ensures the continuity of operations to the current licence holders until the expiration dates of the existing licences and decided that the ban on gambling in Bratislava is not in accordance with the law.
On 25 June 2018 Group announced that it has received the decision of the District Administrative Court in Riga regarding one of the casinos located in Riga (Meistaru street 10). 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 appealed the decision to higher level court.
On 29 June 2018 an extraordinary general meeting was held, where it was decided to amend Group articles of association.

The Group’s consolidated total revenue before gaming taxes by segments:

‘000€	Q2 2018	Q2 2017	Change	6M 2018	6M 2017	Change
Estonia	13,584	14,329	-5.2%	28,256	26,729	5.7%
Latvia	17,084	16,662	2.5%	33,381	33,203	0.5%
Lithuania	6,365	6,673	-4.6%	12,369	13,705	-9.8%
Slovakia	4,352	4,288	1.5%	8,336	8,790	-5.2%
Italy	8,240	7,750	6.3%	16,435	15,665	4.9%
Malta	4,584	3,143	45.8%	7,871	6,259	25.8%
Total	54,209	52,845	2.6%	106,648	104,351	2.2%

Number of casinos by segment:

	30 June 2018	30 June 2017
Estonia	24	24
Latvia	53	52
Lithuania	17	18
Slovakia	6	7
Italy	14	15
Malta	1	1
Total	115	117

The Group’s consolidated operating expenses for 6 months of 2018 amounted to EUR 68.7 million, up 0.9% or EUR 0.6 million y‑o‑y. The growth was highest in personnel expenses (+1.0 m€, +3.7%), amortisation, depreciation and impairment costs (+0.3 m€, +5.3%) and other external services (+0.3m€, +10.8%). Personnel expenses (28.5 m€) and rent costs (8.4 m€) represented the largest cost items accounting for 53.7% of total operating expenses.

The income statement presents revenue before gaming taxes, then gaming taxes and thereafter net revenue. Gaming taxes for 6 months of 2018 increased 6% (+1.3 m€) compared to the same period a year ago.

Overview by markets

Estonia

Total revenue before gaming taxes of Estonian segment for 6 months of 2018 amounted to EUR 28.3 million (+1.5 m€, +5.7%), EBITDA to EUR 4.6 million (+0.4 m€, +8.5%) and operating profit to EUR 2.7 million (+0.2 m€, +9.3%). Gaming revenue before gaming taxes increased 2.6% y-o-y amounting to EUR 22.1 million.

At the end of June 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 30 June 2018 Estonian operations employed 723 people.

Latvia

Total revenue before gaming taxes of Latvian segment for 6 months of 2018 amounted to EUR 33.4 million (+0.2 m€, +0.5%), EBITDA to EUR 12.3 million (-1.2 m€, -8.9%) and operating profit to EUR 10.1 million (-1.5 m€, -12.6%). Gaming revenue before gaming taxes increased 0.1% y‑o‑y amounting to EUR 30.3 million.

At the end of June 2018, there were 53 Olympic casinos with 1,469 slot machines, 16 electronic roulette terminals, 24 gaming tables and 9 poker tournament tables operating in Latvia. As at 30 June 2018 Latvian operations employed 923 people.

Lithuania

Total revenue before gaming taxes of Lithuanian segment for 6 months of 2018 amounted to EUR 12.4 million (‑1.3 m€, ‑9.8%), EBITDA to EUR 1.6 million (-0.1 m€, -5.0%) and operating profit to EUR 0.8 million (-0.1 m€, -10.6%). Gaming revenue before gaming taxes decreased 10.3% y-o-y amounting to EUR 11.7 million.

At the end of June 2018, there were 17 Olympic casinos with 504 slot machines, 8 electronic roulette terminals, 48 gaming tables and 2 poker tournament tables and 25 betting shops operating in Lithuania. As at 30 June 2018 Lithuanian operations employed 720 people.

Slovakia

Total revenue before gaming taxes of Slovak segment for 6 months of 2018 amounted to EUR 8.3 million (-0.5 m€, -5.2%), EBITDA to EUR 0.9 million (-0.02 m€, -2.5%) and operating profit to EUR 0.3 million (+0.1 m€, +23.6%). Gaming revenue before gaming taxes decreased 6.1% y-o-y amounting to EUR 7.4 million.

At the end of June 2018, there were 6 Olympic casinos with 249 slot machines, 30 electronic roulette terminals, 39 gaming tables and 18 poker tournament tables operating in Slovakia. As at 30 June 2018 Slovak operations employed 319 people.

Italy

Total revenue before gaming taxes of Italian segment for 6 months of 2018 amounted to EUR 16.4 million (+0.8 m€, +4.9%), EBITDA to EUR 1.3 million (+0.3 m€, +34.0%) and operating profit to EUR 0.9 million (+0.3 m€, +53.5%). Gaming revenue before gaming taxes increased 5.0% y-o-y amounting to EUR 16.3 million.

At the end of June 2018, there were 14 VLT slot casinos with 526 slot machines operating in Italy. As at 30 June 2018 Italian operations employed 89 people.

Malta

Total revenue before gaming taxes of Maltese segment for 6 months of 2018 amounted to EUR 7.9 million (+1.6 m€, +25.8%), EBITDA to EUR 1.0 million (+1.4 m€) and operating profit to EUR 0.4 million (+1.4 m€). Gaming revenue before gaming taxes increased 26.0% y-o-y amounting to EUR 7.8 million.

At the end of June 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 30 June 2018 Maltese operations employed 196 people.

Financial position

As at 30 June 2018, the total assets of the Group amounted to EUR 183.2 million, up 22.1% or EUR 33.1 million compared to the same period a year ago.

Current assets totalled EUR 77.5 million or 42.3% of total assets, and non-current assets EUR 105.7 million or 57.7% of total assets. The liabilities amounted to EUR 23.0 million and equity to EUR 160.2 million. The largest liabilities included suppliers payables and advances (7.6 m€), tax liabilities (5.7 m€) and payables to employees (5.6 m€).

Investments

Within 6 months of 2018, the Group’s expenditures on property, plant and equipment totalled EUR 6.7 million (+2.2 m€, +47.9%), of which EUR 4.8 million was invested into construction and reconstruction of casinos and EUR 1.7 million into new gaming equipment.

Cash flows

Group’s 6 months 2018 cash flows generated from operating activities amounted to EUR 19.5 million (+0.1 m€) and cash flows used in investing activities to EUR -9.3 million (-4.5 m€). Financing cash flows amounted to EUR 0 million (+15.3 m€). Net cash flows totalled EUR 10.2 million (+11.0 m€).

Staff
As at 30 June 2018 Group employed 3,031 people, down by 28 y-o-y.

Within 6 months of 2018, total personnel expenses amounted to EUR 28.5 million (+1.0 m€, +3.7%). For 6 months 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 680 thousand (EUR 511 thousand for 6 months of 2017) and EUR 54 thousand (EUR 74 thousand for 6 months of 2017), respectively.

Consolidated statement of financial position

(in EUR thousands)	30.06.2018	31.12.2017
ASSETS
Current assets
Cash and cash equivalents	68,711	58,482
Financial investments	160	919
Receivables and prepayments	5,058	4,554
Prepaid income tax	1,869	286
Inventories	1,680	1,658
Total current assets	77,478	65,899

Non-current assets
Deferred tax assets	511	507
Financial investments	1,133	457
Other long-term receivables and prepayments	3,964	3,957
Investment property	357	323
Property, plant and equipment	49,529	49,046
Intangible assets	50,217	49,935
Total non-current assets	105,711	104,225

TOTAL ASSETS	183,189	170,124


LIABILITIES AND EQUITY
Current liabilities
Trade and other payables	20,530	22,082
Income tax payable	531	612
Provisions	1,628	1,780
Total current liabilities	22,689	24,474

Non-current liabilities
Other long-term payables	336	309
Total non-current liabilities	336	309

TOTAL LIABILITIES	23,025	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	690	566
Translation reserves	-24	19
Retained earnings	85,274	71,209
Total equity attributable to equity holders of the parent	153,180	139,034
Non-controlling interest	6,984	6,307
TOTAL EQUITY	160,164	145,341

TOTAL LIABILITIES AND EQUITY	183,189	170,124

Consolidated statement of comprehensive income

(in EUR thousands)	Q2 2018	Q2 2017	6M 2018	6M 2017

Gross gaming revenue	48,279	47,291	95,465	94,319
Other revenue	5,930	5,554	11,183	10,032
Total revenue before gaming taxes	54,209	52,845	106,648	104,351
Gaming taxes	-11,628	-10,365	-22,867	-21,575
Net revenue	42,581	42,480	83,781	82,776
Other income	67	10	80	20
Total net revenue and income	42,648	42,490	83,861	82,796

Cost of materials, goods and services	-1,588	-1,382	-3,032	-2,845
Other operating expenses	-15,641	-15,860	-30,551	-31,373
Staff costs	-14,565	-14,077	-28,537	-27,524
Depreciation, amortisation and impairment	-3,297	-3,148	-6,542	-6,213
Other expenses	-14	-66	-42	-129
Total operating expenses	-35,105	-34,533	-68,704	-68,084

Operating profit	7,543	7,957	15,157	14,712

Interest income	1	0	3	4
Interest expense	0	0	-1	0
Foreign exchange losses	-1	-21	-12	-29
Other finance income and costs	0	-9	-2	-9
Total finance income and costs	0	-30	-12	-34

Profit before income tax	7,543	7,927	15,145	14,678

Income tax expense	-208	-978	-403	-2 113
Net profit for the period	7,335	6,949	14.742	12,565
Attributable to equity holders of the parent company	6,766	6,825	14,065	12,835
Attributable to non-controlling interest	569	124	677	-270

Other comprehensive income
Items that may be subsequently reclassified to profit or loss
Currency translation differences	-35	0	-43	37
Total comprehensive profit for the period	7,300	6,949	14,699	12,602
Attributable to equity holders of the parent company	6,731	6,825	14,022	12,872
Attributable to non-controlling interest	569	124	677	-270


Basic earnings per share*	4.5	4.5	9.3	8.5
Diluted earnings per share*	4.5	4.5	9.3	8.4

* euro cents

Latest News

Clarion Gaming film Virtual Tour showing scale of opportunity for ICE and iGB Affiliate exhibitors in Barcelona

Published

9 hours ago

April 18, 2024

Peter Tolan

Reading Time: 2 minutes

Ahead of January 2025’s relocation to Barcelona, ICE and iGB Affiliate exhibitors can share Clarion Gaming’s ‘Vision of the possible’ courtesy of a specially commissioned virtual tour and exhibitor orientation video which can be viewed at: youtube.com

The 10-minute exhibitor film which is narrated by Clarion Gaming Managing Director Stuart Hunter takes viewers on a tour of the venue beginning with an introduction to Fira Gran Via’s integrated metro station which is located between the El Prat international airport (12km) and the historic city centre (3km) and has the capacity to take huge volumes of attendees directly to the heart of the spacious dedicated registration area at the south entrance.

Viewers are then taken on a journey along the elevated arterial walkway which provides a unique bird’s eye view of the 120,000 sqm exhibition space before accessing the contemporary designed meeting areas and plentiful break-out spaces requested by exhibitors, on to the ultra-modern and scalable conference facilities and the venue’s three ‘Sky Gardens’ which facilitate the delivery of a memorable indoor/outdoor festival experience.

The video also explains the new visitor-friendly show floor which has been designed to easily identify the gaming verticals of interest and in the process ease navigation through the five halls that the 2025 editions of ICE and iGB Affiliate will occupy.

Introducing the video Stuart Hunter said: “This is the latest in a series of orientation initiatives which we started in October 2023. This video which is aimed at ICE and iGB Affiliate exhibitors, partners and sponsors will be followed by a dedicated visitor tour to help prepare for this exciting new chapter.

“As a team we could not be more excited about the opportunities offered by our new home at Gran Via and new host city of Barcelona: the film sets-out the size of the opportunity that we have as an industry and shares a compelling vision of what’s possible.”

ICE/iGBA 2025 will use circa 120,000 gross sqm of The Gran Via (ICE 2024 utilised 100,000 gross sqm in London) across Halls 1 (iGB Affiliate) and 2-5 (ICE). An additional 160,000 sqm has been reserved exclusively for ICE/iGBA across the five-year tenancy. The Convention Centre which is located in Hall 8 comprises a modular and versatile space with seating for between 3,000 and 12,000 people.

Latest News

José Garcia promoted to General Manager for Innovative Technology Spain

Published

9 hours ago

April 18, 2024

Peter Tolan

Reading Time: 1 minute

The Spanish branch of Innovative Technology (ITL) have announced that a long-standing member of the team has been promoted to General Manager. José (Pepe) García Escudero previously held the role of Business Development Manager for the region.

ITL Spain has had an office in Barcelona since 1996, headed up by Sales Director Mustapha Hadj-Ahmed. They provide both cash validation equipment and biometric technology to various market sectors including, gaming, amusement, kiosk and retail.

Commenting on José’s promotion Mustapha said, “I would like to congratulate José (known to most of his customers as Pepe!) on this well-deserved achievement. I have worked with him since he joined the company seven and half years ago and he is hard working, a real team player and has an excellent eye for spotting new opportunities. José will be responsible for overall operations as well as continuing his business development tasks. I am sure he will excel in his new role and I am confident he will lead our talented team to new heights! I look forward to exciting and prosperous times ahead.”

Pepe added, “I am so pleased to be given this fantastic opportunity and to play a more operational and managerial role in the business. Each member of the team here in Spain are a key part of our success, and the reason we are known for being a leading provider of cash handling equipment. I am excited to get started and see the business grow even further as we continue to serve our valued customers and develop our technology to response to the changing needs of the market.”

Concluding Mustapha said, “José will be heading up the team at the FIJMA show in Madrid on 7th – 9th May 2024 on stand A49, so if you are attending the show come and say hello!”

Asia

Team ATK Oshun excels at 2024 Online Championships held on 13 April 2024

Published

17 hours ago

April 18, 2024

Adrienn Sarkany

Reading Time: 2 minutes

Mind Sports South Africa’s (MSSA) 2024 Online Championships held on 13 April 2024 showed sterling results.
The championship was yet another chance for many esports athletes to qualify for MSSA’s National Team Trials to be held on 25 May 2024 at which the team will be selected to officially represent South Africa at the African Qualifiers which lead up to IESF’s 16th World Esports Championships to be held in Riyadh, Saudi Arabia in October and November 2024..

All Registered Players who have finished in the top three places, or the top 20% – whichever is greater, are entitled to enter trials.

However, it must be remembered that all players must have a valid passport to participate in the National Team Trials.

It was indeed exciting to watch just how much all the female teams have improved.

Team ATK Oshun (ATK Club Sport) being a female team astounded all with their skill and sportsmanship. The team demolished all ATK Club Sport opposition to ultimately won the premier event overall and qualify for the National Team trials to be held on 25 May 2025.

IESF’s 15th World Championships will be played to the following titles:

Counter-Strike 2
Counter-Strike 2 – Female division
DotA 2
eFootball
Mobile Legends, Bang Bang
Mobile Legends, Bang Bang – Female division
PUBGM

The high standard of play saw 37 Registered Players from six provinces being awarded Provincial Colours. Only Limpopo, Free State, and Northern Cape did not have Registered Players who did not earn provincial colours.

Title	Name of player/team	Club	Provincial Colours awarded
Clash Royale – Premier	Johan Coetzee	Middies	Mpumalanga
Clash Royale – High School	Aryan Maharaj	PR0NHS
Counter Strike: 2	ATK Oshun
	Kaylee Ludick	ATK Club Sport	Gauteng
	Jessica Eleez Greeff	ATK Club Sport	Gauteng
	Christin Brazier	ATK Club Sport	Gauteng
	Megan van der Westhuizen	ATK Club Sport	Gauteng
	Kayhla Rose Calder	ATK Club Sport	Gauteng
DotA – Premier	ZAG DOTA 1
	Suhail Khan	ZAG Academy	Gauteng
	Travis John Waters	ZAG Academy	Western Cape
	Mark Kilian Lehle	ZAG Academy	Gauteng
	Mohammad Dhooma	ZAG Academy	Eastern Cape
	Nicholas Dammert	ZAG Academy	Gauteng
eFootball – Premier	Aslam Parker	PES Society	Gauteng
FIFA 24 – High School	Daiyaan Hendricks	PES Society	Western Cape
Mobile Legends – Premier	Mavericks
	Matthew Tatalias	Mavericks	Gauteng
	Damian Bransby	Mavericks	Western Cape
	Preshan Pillay	Mavericks	Gauteng
	Mohammad Azhar Ansari	Mavericks	KwaZulu Natal
	Taygan Gabriel	Mavericks	KwaZulu Natal
	Luke Green	Mavericks	Western Cape
Mobile Legends – Premier – Female	AHG
	Je’nielle Cavanagh	PES Society	Western Cape
	Inez Pringle	PES Society	Western Cape
	Salma Parker	PES Society	Western Cape
	Ra’isha Prout	PES Society	Western Cape
	Fatimah Prout	PES Society	Western Cape
	Mia Anthony	PES Society	Western Cape
PUBGM	Team uEnvy
	Richard Henry	ZAG Academy	Eastern Cape
	La-eeq Arendse	ZAG Academy	Western Cape
	Kyle Dudley	ZAG Academy	Western Cape
	Clayton Leak	ZAG Academy	Western Cape
Rocket League – Premier – 1 v 1 – Premier	Nathan Strange	Hoërskool Klerksdorp
Rocket League – Premier – 1 v 1 – High School	Luther Peens	Hoërskool Klerksdorp
Street Fightter V – Premier	Marnus van der Merwe	Hoërskool Klerksdorp	North West
Tekken 8	Stasch Cloeta	Team PlayBell	Western Cape
Valorant – Premier	TuksValorant
	Tapiwanashe Keith Matema	TuksEsports	Gauteng
	Kyle Halvorsen	TuksEsports	Gauteng
	Jaden Connor Swarts	TuksEsports	Gauteng
	Ronald James Tyler Wheeldon	TuksEsports	Gauteng
	Alejandro Luca Sartini-Kruger	TuksEsports	Gauteng
	Armand Pierre van der Colf	TuksEsports	Gauteng
Sportsmanship Award	Je’nielle Cavanagh	PES Society