Casino operator Olympic Entertainment Group AS has reported a 2020 loss of €78.3 million
Restrictions arising from the pandemic were the major factor behind the losses, the group said in its annual financial report, and saw walk-in casinos in Estonia closed March to May at the height of the coronavirus emergency situation in 2020, and again over the new year and into early 2021.
In 2019, the company had made a profit of €42.5 million, BNS reports.
Olympic Entertainment Group AS says its management has focused on reducing costs and managing liquidity, in the light of the ongoing pandemic situation.
In addition to independent cost reduction measures, management has benefited from salary compensation and tax deferrals state support measures implemented by the Estonian state in order to mitigate the effects of the pandemic.
The sustainability of the company is not in question, management says.
As of the end of 2020, Olympic had a stake in 12 companies registered in Latvia, Lithuania, Poland, Slovakia, Italy, the Netherlands, Jersey and Malta, as well as in Estonia itself.
These s provide services such as hospitality, holding company services, software and tech solutions as well as traditional gambling activities.
Olympic Entertainment Group AS belongs to the Luxembourg-registered Odyssey Europe Holdco S.a.r.l group.
Olympic Entertainment Group AS 2020 financial year breakdown:
- Gambling and other sales revenue totaled €35.6 million (2019: €40.5 million).
- Gambling revenue before the gambling tax: €41.1 million (2019: €47.4 million).
- Board members' salaries and benefits including social tax: Close to €1.2 million (2019: €914,000).
- Operated 23 casinos, 917 slot machines, 19 gaming tables and six electronic roulette tables.
- Employed 395 people (2019: 446).
- Labor costs: €13.8 million (2019: €14.5 million).
- June 2020 reorganization saw remote gambling services segment and Lithuanian casino business were transferred to Olybet 5 Lux Holding S.a r.l., while on June 16, all Olybet shares were transferred to holding company Odyssey Europe Topco S.a.r.l.
Editor: Andrew Whyte