Olympic Entertainment Group continues to cut costs
08.02.2010, 16:47The management of Olympic Entertainment Group has reported on the results of restructuring activities as of the end of the fourth quarter.
The company said in a stock exchange release that the group's main objective of activities in 2009 was the adjustment of operations to changing market situation. Within 2009 the restructuring and optimization program was carried out, in course of which 44 casinos were closed (excluding Ukraine).
In the fourth quarter, the group had non-recurrent expenses in total amount of 96.8 million kroons. Expected cost effect of 2009 optimization activities in 2010 amounts to 660.8 million kroons.
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Reevaluation of investment property in Lithuania has caused non-recurrent costs in amount of 18.9 million kroons and fixed assets removal from operations due to casinos closures - in amount of 14.1 million kroons. Value of intangible assets has been decreased by 21.9 million kroons. Provisions connected with closed casinos rent agreements termination amounted to 11.1 million kroons. In addition, assets that were no longer expected to be utilized, were sold in fourth quarter 2009, which has caused sales losses of 29.9 million kroons.
In the fourth quarter the group has additionally reduced personnel by 113 employees, related costs amounted to 0.9 million kroons.
OEG will announce Q4 and 2009 consolidated results on 8th week.