- The sustained growth in all the markets where the company operates and the efficient execution of its strategy allowed it to improve its operating profit by 19,5% compared to the second quarter of 2022.
- The Group has earned a 12-point rating in the Sustainalytics assessment of its ESG commitments and results, placing it among the industry’s top three companies in the world.
Terrassa, 7th September 2023 – CIRSA, the leading global gaming and entertainment company and the market leader in Spain, reported an operating revenue of €500 million and an operating profit of €158 million in the second quarter of 2023.
These results confirm the company’s strong business growth trend thanks to its strategy of focusing on key markets and of continuously improving service quality and supply. This means that it has exceeded operating revenue by 26,5% and operating profit by 19,5% with respect to the second quarter of 2022.
Additionally, the Group has obtained a 12-point rating in the assessment carried out by Sustainalytics(1) annually, a score that places CIRSA in the low risk category in ESG matters. This places it among the top 3 companies in the gaming sector and among the top 10 in the category of Consumer Services worldwide in terms of sustainability.
Joaquim Agut, Executive Chairman of the CIRSA Group, points out the value of the rating, highlighting ‘the great progress the company has made in ESG over the past few years as a result of the effort and good work performed by all of the company’s divisions.’ He adds, ‘ESG criteria are a fundamental pillar in our corporate strategy and we will remain committed to the initiatives identified as being the most relevant to our industry.’
Highlights of the second quarter of 2023 CASINOS
The results of the casino and gaming room division have continued to grow thanks to service improvements and to the continued expansion of the product offering with innovative models demanded by our customers. At the same time, our actions have focused on the execution of commercial plans focused on improving the quality of points of sale, the growth of the customer base and the improvement of margins. This is a result of both the increase in revenue and the execution of cost efficiency projects in all the geographical areas where the company operates. In the Interactive area, which specialises in gaming room management systems, the growth in Forward Systems installations throughout Spain continued.
SLOT MACHINES – SPAIN
The business and results of the division continue to evolve at a very good pace thanks to the strong performance of the latest generation of products recognized for their reliability and innovation, such as the new Manhattan Party machine for the Bars and Restaurants channel. The priority has been to continue with the correct execution of commercial plans based on a selective search for the highest quality points of sale, with the installation of the product being adapted to each location and improved efficiency in our logistics and service platform.
In the industrial area, actions taken in raw material and component cost improvements and the progressive normalization of supply chain lead times have been decisive factors in improving results.
SLOT MACHINES – ITALY
Operations in Italy have seen a significant improvement in revenue from 2022, where we highlighted the speed in the installation of products in new premises and in existing ones.
The full incorporation of Modena Giochi and the implementation of the synergies produced by the purchase have significantly contributed to the EBITDA growth of Slot Machines Italy.
ONLINE GAMING AND BETTING
The online gaming and sports betting division continues to show its strength with significant growth in both volume and margin across all the markets where it operates, progressively increasing its weight within the Group. Multichannel and customer intelligence strategies continue to pay off and have been complemented by the good performance of procurement channels, which in turn are favoured by both the sports agenda and the excellent activation of Manchester City sponsorship.
- The full recovery of activity levels in all the markets where the Group operates and the efficient execution of its strategy allowed it to improve its operating profit by 27.9% compared to the first quarter of 2022.
- Today the company releases its new 2022 ESG report, which outlines its commitments and results on environmental issues, social responsibility and governance.
Terrassa, 24th May 2023 – CIRSA, a leading global gaming and entertainment company and Spain’s market leader, reported operating revenues of €482.5 and an operating profit of €151 million in the first quarter of 2023.
These results confirm the full recovery of pre-pandemic levels of activity and the continuous improvement of the Company’s results, allowing it to outperform in terms of operating revenues by 29.2% and of operating profit by 27.9%, compared to the first quarter of 2022.
On the other hand, the company publishes its new 2022 ESG report today, which outlines CIRSA’s commitment to grow its business responsibly and sustainably. It also highlights its strategic lines of action in environmental sustainability, social responsibility and good governance for the future. The Report uses both the Global Reporting Initiative (GRI) standards, as well as what is defined in the draft ESRS (European Sustainability Reporting Standards) regarding the materiality assessments of companies. The Report and other ESG-related materials can be found on the Company’s website at https://www.cirsa.com/cirsa/investor-relations/esg-report/
According to Joaquim Agut, Executive Chairman of the CIRSA Group, “in the first quarter of 2023, all our business units have demonstrated strong performance and confirmed the trend for continuous improvement, with the entire CIRSA team having been involved in the implementation of our operational plans. Despite current global economic and geopolitical uncertainties, our commitment remains focused on aligning the execution of our business strategy with the ESG principles that are most relevant to our industry.”
Highlights of the first quarter of 2023 CASINOS
The results from the casino and gaming halls division have been marked by an upward trend in all geographic areas where the company operates, thanks to the execution of commercial and cost- efficiency plans. A new casino has been added in Tuxtla (Mexico) during this first quarter.
In addition, we have continued to improve our gaming and entertainment offer in our halls, incorporating ESG criteria into all of our investments.
SLOT MACHINES – SPAIN
The priority has been to continue with the correct execution of commercial plans based on a selective search for the highest quality points of sale, the adaptation of best product to each location and the improved productivity in our logistics and service platform.
The activity in the industrial area continues at a very good pace, thanks to the high performance of product launches, such as the new Manhattan models for the bar and restaurant channel and the Link Mix models in the arcades channel. The division has also launched Manhattan Party, a new product from the Manhattan saga that continues to be a bestseller. Raw materials and components inflation has stabilised, and lead times are normalising in the supply chain. In the Interactive area, which specialises in gaming hall management systems, the growth in Forward Systems installations throughout Spain continued at a steady pace.
SLOT MACHINES – ITALY
The Italian operation experienced a positive impact on recurring organic revenues of AWP and VLT over 2022, thanks to the various improvement actions implemented during the previous year in innovation and sales.
ONLINE GAMING AND BETTING
Results from the online gaming and sports betting division, focused solely on regulated markets, exceeded expectations raised in the operating plan, with growth in both revenue and market share across channels and markets. The division continues to strengthen its multichannel strategy as well as customer intelligence management. In addition, during this period the use of Manchester City’s geo-located digital assets was initiated as part of the sponsorship agreement with the club.
- The return to normality in virtually all the markets where the Company operates enabled it to exceed the pre-pandemic result for 2019.
- The company increased its turnover by 55.8% compared to 2021.
- First Spanish Group to obtain Responsible Gaming certification from the international certifying body G4.
Terrassa, 22 February 2023. CIRSA, a multi-national gaming and entertainment leader and Spain’s first company in the sector, generated €1,741.2 million in operating revenues and an operating profit of €552.5 million in 2022.
In 2022, results developed very favourably quarter after quarter, both in terms of revenue growth and operating profit, which was +66.7% higher than in 2021. In a complex economic environment, due to the impact of Covid restrictions on revenues and widespread cost increases, this achievement has been possible thanks to the efforts of the entire organisation in implementing the scheduled business, efficiency and productivity plans. It is also worth noting the acquisition of the Italian online gaming company E-Play24, which reinforces the Group’s omni-channel strategy.
In the fourth quarter, the Company achieved operating revenues of €496 million (+31.1% vs. Q4’21) and an operating profit of €154.6 million (+27.6% vs. Q4’21). The return to pre-pandemic levels of activity and the implementation of the plans described above have contributed to improved results in all business areas.
According to Joaquim Agut, Executive Chairman of the CIRSA Group, “without the commitment of the entire organisation in achieving both our financial and sustainability objectives, it would not have been possible to return to the path of historic quarterly growth, and thus exceed the results achieved in 2019, just before the pandemic”.
2022 Highlights CASINOS
The results of the Casinos division improved in line with the favourable evolution of Covid restrictions in the different countries. A particular impact was felt from the third quarter of the year due to the opening of the Moroccan market in May, as well as the strict execution of business and efficiency plans, which exceeded the 2019 results in the second half of the year. In the Division, the incorporation of the Tangiers casino in May is noteworthy.
In the fourth quarter, the Slot Machines division in Spain consolidated the clear recovery in revenues and Ebitda that had been taking place throughout 2022. This also allowed it to improve on the results obtained in the fourth quarter of 2019.
The warm acceptance by our customers of our gaming offer through the operation of successful models such as Manhattan and Kong Chita, and the rigorous implementation of various productivity plans, explain these results.
In Italy, we started 2022 still with significant restrictions that had a direct impact on consumption. However, in the last two quarters of the year we observed an improvement in the trend of the two business areas (AWP and VLT), which should allow for a positive inertia at the beginning of 2023.
The Arcades division continued to improve the level of activity of previous months due to the operational management of the business and the continuity of the customer loyalty and recovery actions implemented.
The results of the online gaming and sports betting division were very positive, with growth in both revenue and market share compared to the previous year. Seasonality was marked by the World Cup in Qatar, with favourable results across all channels and geographies. Following the strategy of strengthening the brand’s position in the different markets, an agreement was initiated with Manchester City, as the club’s official sponsor for the main countries where the company operates (Spain, Italy and Latin America).
The Bingo Halls division, which experienced significant growth from annex halls, maintained the trend of positive results thanks to the action plans implemented that focused on customer loyalty and satisfaction.
B2B – UNIDESA
Activity in the industrial area experienced a full recovery thanks to sales of Manhattan Reelvolution, Fireshot Bar, Kong Chita and China Legends in the hospitality channel, and Fireshot Link and Link Mix in the arcades channel. The month of December witnessed a milestone in the history of Unidesa, and also for the sector, as the 25,000th Manhattan machine was manufactured and sold. This was despite continued price increases in raw materials and components, as well as delays in the supply chain. In the Interactive area, which specialises in gaming room management systems, the growth of Forward Systems installations throughout Spain continued.
Terrassa, 23 November 2022 – CIRSA, a leading global gaming and entertainment company and Spain’s market leader, reported an operating profit of €147,5 million in the third quarter of 2022 (+46,7% vs. Q3 2021). Operating income from July to September was €466,8 million (+39,4% vs. Q3 2021). Compared to pre-COVID figures in 2019, operating profit in the third quarter increased by +24,3%.
In the first nine months of 2022, the company accumulated an EBITDA of €397,9 million and an operating
income of €1.245,2 million.
These results confirm the company’s upward revision from last October, which it provided to the markets, improving its third-quarter forecast by more than €12 million. This improvement is due to the excellent implementation of operational plans by the different business units amid an environment of macroeconomic and geopolitical adversity.
Q3 2022 Highlights
- In the third quarter, we were able to increase pre-pandemic activity thanks to the recovery, an increase in visits and the strict execution of commercial plans. Our revenue continued to improve in all countries, surpassing those of 2019 in this quarter, despite some restrictions being maintained in some of them. It is worth noting the good performance of the three casinos in Morocco after they opened on 5 May.
SLOT ROUTE OPERATION
- The Slot Route Operation division maintained its positive trend from previous periods despite being a challenging quarter for hospitality establishments in Spain, especially as a result of significant cost increases, and those related to energy. Continued investment in curating our innovative and cutting-edge product offering has been a determining factor. In this aspect, the good performance of UNIDESA’s Manhattan and Kong Chita models (Division B2B) continued to stand out.
- The first two quarters of the year were still impacted by the effects of the pandemic on the economy. Even so, Italy managed to improve revenues on VLT machines and Bingo halls, maintaining the AWP’s activities in the hospitality channel.
- The Arcades division maintained the trend of positive results due mainly to the action plans implemented that focused on customer satisfaction.
- The results of the online gaming and sports betting division were very favourable, with significant increases compared to the previous year. All of this was due to an excellent reactivation, coinciding with the start of the main sports competitions. In addition, efficient marketing management, as well as customer intelligence, continue pushing the consistent improvement in results. In addition, the recent acquisition of 60% of the Italian company E-Play24 has allowed the division to enter the Italian online gaming market and double its turnover.
- During the third quarter, the Bingo Halls Division continued to improve activity levels compared to the previous quarter, due to continued customer loyalty and recovery actions, implemented since the lifting of hourly restrictions.
B2B – UNIDESA
- The Fire Shot Bar and China Legends models for hospitality were introduced in September and will help maintain UNIDESA’s leadership in this channel. The Manhattan Reelvolution model continued to be the gold standard in the Spanish market.
- For the Arcades subsector, Link Mix was also introduced. This is a LINK product that incorporates two multi-game bundles, Hit The Link and Fire Shot Link, with Jackpot sharing.
- In the Interactive area, there was a significant increase in numbers for Spain and Mexico in arcades that adopted the Forward Systems management system.
Operating revenue grew by 61.7% thanks to the favourable evolution of Latin America and the good level of activity in Europe
Terrassa,7 September 2022 – CIRSA, a leading global gaming and entertainment company and Spain’s market leader, has reported an operating profit of €132.2 million in the second quarter of 2022 (+63.1% vs. 2021). Operating revenue from April to June amounted to
€400.2 million (+61.7% vs. 2021). Compared to pre-COVID figures in 2019, operating profit in the second quarter stood at +18.8%.
In the first half of 2022, EBITDA was €250.3 million (+128.2% vs. H1 2021) and operating revenue reached €778.4 million (+92.7%), successfully consolidating the recovery that began in the second half of 2021 and improving the 2019 results for the same period.
These results have been made possible thanks to the implementation of the operational plans prepared by different business units, which were already put into operation in all markets under normal conditions in terms of operating hours and other restrictions. The Group’s commitment will remain focused on improving results, concentrating on customer service and productivity, the two fundamental pillars in the Group’s sustainable growth, even in an adverse macroeconomic environment.
In line with the strategy relating to selective purchases in markets where the Group is present, the Company reached a management agreement to operate the only casino in the city of Tangier (Morocco). Already at the start of the third quarter, was closed the acquisition of a 60% stake in Eplay24, an Italian sports betting and online gaming operator with a strong omnichannel activity.
Q2 2022 Highlights CASINOS
- The division maintained the recovery that started in the first quarter of 2022 thanks to the recovery and increase in visitors, the excellent implementation of commercial plans and the reopening of casinos in Morocco in May, after more than two years of inactivity. Revenue performance has continued to improve month-on-month in all countries, with revenues in June over those of 2019.
- Models developed by the B2B division (UNIDESA) continued contributing to the great results of this division, which consolidated the revenue recovery in the first quarter of 2022.
- Following the same trend, Italy recorded an improvement in revenue in both VLT and AWP machines and in halls.
- The Arcades Division also consolidated the improvement that began in the first quarter, achieving levels of activity higher than the pre-COVID period thanks to the systematic execution of commercial plans and the operational improvements implemented.
- The results of the sports betting division were very positive, supported by the favourable seasonality of the sports calendar. Excellent customer intelligence management and the brand’s omnichannel approach continued to be key to maintaining the pace of growth in all its channels and markets.
- From April to June, the division continued to improve the level of results based on the customer loyalty and recovery actions, implemented since the lifting of restrictions.
B2B – UNIDESA
- The second quarter saw the consolidation of the new product in the Manhattan line, Manhattan Reelvolution, the best-selling product in the Hospitality channel, which, together with the Kong Chita model, allowed the brand to reaffirm its leadership in the Horeca channel in Spain. In the Arcades subsector, the marketing of Dragon Bonus and Fireshot Link was launched.
- The Interactive division, which specialises in arcade management systems, also saw an increase in market share thanks to new functionalities.