Half Year Report 2011 - Fortuna Entertainment Group EU

In the first half of 2011, the Company recorded total revenues in the amount of EUR 41.9 million, 6.5 % more
than in the previous year.
Total operating costs in the first half of 2011 came to EUR 30.0 million, 8.2% more than in the same period
in 2010. Staff costs increased 1.1% YOY to EUR 13.2 million. Nevertheless, staff costs denominated in local
currencies were lower than last year and the annual increase resulted from the appreciation of CZK against
EUR. In the first half of 2011 governmental taxes and levies amounted to EUR 3.6 million, 8.0% more than in
the previous year. Other operating expenses (net) increased in the first half of 2011 by 16.4% to EUR 13.2
million primarily due to start-up lottery costs and further enhancement of existing products and services, such as
live streaming of sporting events on the website.
Fortuna EBITDA increased in the first half of 2011 by 2.4% to EUR 11.9 million. The high EBITDA increase
recorded in Q1 2011 was mitigated by weaker markets (mainly the absence of the FIFA World Cup) and higher
OPEX in Q2 which overall impacted the profitability of the Company in the first half of this year. Moreover, the
annual comparison was influenced by a strong Q2 2010 driven by the FIFA World Cup betting.
In the first half of 2011, depreciation rose 16.3% to EUR 1.5 million. This was caused by the reconstruction of
retail network equipment and online channel investments as well as appreciation of the CZK against the EUR.
In the first half of 2011, operating profit (EBIT) amounted to EUR 10.4 million, 0.7% more than in the same
period in the previous year. This result was impacted by higher depreciation.
Net finance costs reached EUR 272 thousand in the first half of 2011 and significantly decreased by 84.6%
YOY. Low finance costs resulted from refinancing in 1H 2010, repayments of some debts in 2010 and FX
gains (net) recorded in the first half of 2011. The annual comparison was impacted by EUR 0.4 million of oneoff
expenses related to bank debt refinancing in the first half of 2010.
Income tax equalled EUR 1.5 million in 2010, 13% more than in 2010.
In the first half of 2011, the Company recorded a net profit of EUR 8.6 million, 19.3% more than in the previous
year. Discontinued operations (Croatia) were no longer accounted for in the 2011 financial year. The result
achieved was influenced by the levels of higher volumes of accepted bets and significantly lower finance costs.
Cash and Indebtedness
The total amount of bank debt as of 30 June 2011 was EUR 28.2 million, 3.1 % less in comparison with 31
December 2010. Cash and cash equivalents as of 30 June 2011 amounted to EUR 13.5 million, 46.7% less
than as of 31 December 2010 and were impacted by the dividend payment in June 2011. The total balance
of those two items resulted in a Company net debt of EUR 14.7 million as of 30 June 2011, 287.5% higher
than as of 31 December 2010.
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