Eastern European casino operator Olympic Entertainment Group (OEG) has struck a deal to acquire Lithuanian betting operator UAB Orakulas.
Terms of the deal weren’t disclosed, but Orakulas generated revenue of just under €4m in 2014 from its 35 betting shops, 12 of which are located in Lithuania’s capital Vilnius. The deal still requires approval of the Lithuanian Competition Council.
OEG issued a statement saying the deal would increase its market share in the country, where OEG already operates 18 gaming venues. But OEG believes Orakulas’ shops will lead to “more rapid penetration to Lithuanian sports betting and newly established online gaming market.”
OEG recently turned in its Q3 report card, which showed Lithuanian revenue falling 7.7% to €5.2m. Overall revenue rose 5% to €39.9m, of which €37.4m came via gaming operations. Operating profit rose 8% to €8.8m while net income rose 14% to €8m.
Latvia remains OEG’s main market, with revenue at its 37 gaming venues rising 13.4% to €14.6m. Estonia’s 20 venues ranked second with €8.8m, up 10% year-on-year. The rest of OEG’s regional markets fared as follows: Poland (€4.7m, -10%), Slovakia (€3.9m, flat), Italy (€2.5m, +30%) and Belarus (€169k, -65%).
The third quarter was an active one, as OEG inked a deal in July to acquire SIA Garkains and its subsidiary SIA Post-Nevada. Once complete, the transaction will boost OEG’s Latvian presence to 57 gaming venues. OEG inked another deal in July to acquire the operations of two VLT slot casinos in Italy from Pasquale Di Gaetano – Judica Concetta and sons sas. In August, OEG secured a €25m loan agreement to finance construction of the Hilton Talinn Park hotel in Estonia’s capital.
Since the quarter ended, OEG has acquired the 30% of Italian subsidiary The Box S.r.l. tthat iit didn’t already own. Terms weren’t disclosed but OEG said the transaction would have no material impact on its profit, assets or liabilities.
