Olympic Entertainment Group sees net profit rise despite reduction in casino portfolio

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Estonia-headquarted Olympic Entertainment Group (OEG) saw a rise in profit for the first half of 2018 despite the continuing reduction of its retail casino business.

OEG reported gross revenue of E106.6m in the six months ending 30 June, a two percent improvement on the same period last year.

Meanwhile, the company saw a 16.7 percent increase in net profit, which rose to E14.7m, which the company attributed to a significant reduction in income tax payments.

The gains came despite OEG’s reduced retail base, the company’s portfolio of casinos shrank to 115 from 117 at the end of the same period in 2017, and from 125 at the end of H1 2016.

OEG’s number of slot machines fell two percent to 4,021, electronic roulette terminals decreased by six percent to 109, gaming tables were down 5.4 percent to 156, while poker tables were reduced 4.5 percent to 63.

In the past few years, OEG was forced to exit the Polish market, and is fighting an ongoing legal battle against plans by anti-gaming officials in Latvia’s capital Riga to ban gambling in the historic city centre, which would see the closure of seven of its properties.

The company was also facing the loss of four venues in Slovakia’s capital Bratislava until the city’s casino ban was overturned by a local court back in June.

Latvia remains OEG’s strongest market, with 53 gaming venues generating E33.4m revenue during H1; Estonia’s 24 venues ranked second with E28.3m; while Italy’s 14 venues reported E16.4m.

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