Latvian Market Drives Growth for OEG

Casino firm OEG reports strong earnings in the Baltic states while disappointing everywhere else, especially Slovakia.

The brick-and-mortar casino firm Olympic Entertainment Group (OEG) made gambling news by reporting strong first quarter growth. The company posted EUR 32.7 million in revenue over the period, a 5.9 percent increase from its first quarter revenue last year.

The firm’s Latvian arm proved its most profitable, accounting for EUR 9.6 million in revenue, a 30 percent leap from the corresponding period in 2013. Revenue also increased in neighboring Lithuania and remained stable in Estonia, although OEG reported losses in Belarus, Poland, Slovakia and Italy.

Belarus was the most disappointing sector of the market, with revenue falling by 31.3 percent from the first quarter of 2013. Italian gambling laws require casinos to pay relatively high taxes, and OEG’s after-tax revenue in the country fell by 12.6 percent from its pre-tax figure.

Expansion in Slovakia fails to bear fruit

The 10.3 percent drop in revenue from the Slovak market proved to be the most disappointing, however, given that OEG recently invested more than $1.7 million to acquire video lottery terminal operator WinWin Slovakia. The acquisition expanded OEG’s presence but failed to generate increased profits in the country.