Estonia – Olympic feels growth of seven per cent in 2013By Phil - 7 March 2014
Baltic-born operator Olympic Entertainment Group bounced back in 2013 with consolidated sales revenues for the 12 months of €145.3m, up 7.8 per cent or €10.5m year‑on‑year.
Gaming revenues accounted for 93.6 per cent or €135.9 m of this total. Olympic’s consolidated net profit totalled €25.7m compared to €24.2ma year ago.
The year was notable for some key developments for the group including the purchase of Siquia Holding in the Netherlands and the registration of companies Gametech Services and Brandhouse in Jersey to create a legal platform for the expansion of the group’s activities in markets related to online gaming.
Olympic also bought Dutch entity Jessy Investments B.V. and transferred the 100 per cent shareholding in OÜ Fortuna Travel to the acquired entity. In addition, Olympic Entertainment Group AS acquired 100% shareholding in Kesklinna Hotelli OÜ, the share of which was used to increase the share capital of Jessy Investments B.V through non-monetary contribution. The restructuring was completed in June 2013.
Siquia was set up as a subsidiary of Olympic Casino Eesti, and subsequently bought Latvian casino operator Altea SIA, which led to an increase in the group´s casinos in Latvia from 21 to 38. Olympic Casino Latvia started providing online gaming services in Latvia from 1 August 2013. In addition, the Group launched sports betting and sports bar network under Olybet name, a new brand for online services.
Finally Kesklinna Hotelli OÜ and AS Merko Ehitus Eesti signed an agreement for the construction of a new upscale hotel to replace Reval Park Hotel & Casino. The new hotel, pictured, will be operated by Hilton Worldwide under its Hilton Hotels & Resorts brand. The estimated cost of the new hotel and casino complex expected to open in December 2015 is €36m. The group´s Estonian flagship casino is currently operating in the Radisson Blue Hotel Olümpia.
The Estonian gaming sector remained stable for the group with revenues of €35.2m, up 1.7 per cent on last year. With18 Olympic casinos, 737 slots and 19 tables, the market share of Olympic Casino Eesti AS in the Estonian land-based gaming market was 56 per cent remaining on the same level as a year ago.
The Latvian segment was up 5.7 per cent to €39.3m whilst at €21.5m, Lithuania also saw a year-on-year increases with a 7.5 per cent gain on 2012.
Olympic’s three Polish casinos delivered similar results at 2012 generating GGR of €27.4m, up just 0.7 per cent with the group’s five Slovakian properties up 6.1 per cent to €16.1m. The Belarusian segment was down 30 per cent with GGR of €2.4m whilst Italy, where the group operates two VLT slot casinos with 112 VLTs, generated GGR of €7m