CIRSA has earned €28.6 million in operating profits in the first quarter of 2021
Operating capacity during productive hours from January to March decreased by 66% compared to a conventional quarter before the pandemic
Terrassa, 19th May 2021 – CIRSA, a leading global gaming and entertainment company and Spain’s market leader, reported an operating profit of €28.6 million in the first quarter of 2021. Operating revenue from January to March totalled €156.4 million.
These results correspond to the closures and continuous restrictions on opening times and capacity, brought about by the pandemic, that continued to impact all markets and businesses in which the company is present during January, February and mid-March. This effect resulted in a significant reduction in operating hours from a conventional pre- Covid month that was 29% in January, 24% in February and began to recover in mid- March to reach 44%. Both in April and in the first few weeks of May, there has been an overall improvement in operating hours derived from the acceleration of the vaccination process and its positive impact on restrictions.
In Spain, the closures and restrictions affected casinos, bingo halls, gaming rooms and the hospitality channel in practically all autonomous communities, with the closure months in Catalonia (October 2020 – March 2021) and the Valencian Community (January – April 2021) standing out. Sportium’s online business was the only one that continued to operate fully during the first quarter.
In Latin America, the casinos in Panama and Peru remained closed for more than two months in the first quarter, while activity in Colombia, Mexico, Costa Rica and the Dominican Republic suffered the impact of sporadic closures and heavy restrictions on opening hours and capacity during days for which they were open from January to March 2021. In Morocco and Italy, there has been no operating activity since March and November 2020, respectively.
In all places where reopenings and the lifting of restrictions are taking place, confirmation of a rapid recovery of revenues continues, that, together with immediate and flexible management of costs and the solid liquidity position, allow the Group to confront, with full guarantees, the operating restrictions that are expected in the coming months until normal activity resumes.
Q1 2021 Highlights CASINOS
- The gradual openings, although with heavy restrictions in Colombia, Costa Rica and the Dominican Republic, enabled a rapid recovery of customers reaching 80% of revenue compared to the same pre-Covid period.
- The prolonged closures and opening restrictions in the hospitality channel in the vast majority of autonomous communities in Spain continued to have an impact on the division’s activity. During the partial openings, the plans for reactivation and the positive reaction towards cutting-edge models such as Manhattan and el Oro del Faraón allowed recovery to start at the end of the first quarter.
- The bingo hall division in Spain suggested that the multiple and different regulations significantly limited its activity in the different autonomous communities, especially in the months of January and February. Despite this, it achieved an acceptable recovery of revenue in the reopening periods that, together with the contingency plans and loyalty actions, appeased results in this difficult stage.
- In the first quarter, the Mexican market continued to be overshadowed by closures, and restrictions on opening hours and capacity, so both employees and customers continued to trust the health and safety protocols implemented by the Group. This, together with implementation of the corresponding marketing plans, allowed the company to continue relying on the loyalty of customers during opening hours.
B2B – UNIDESA
- In March, the manufacturing division began a recovery in sales compared to the first two months of the year, despite the complicated situation of many operating companies being affected by the closures and/or reductions in hospitality channel activity hours. The Interactive division continued with the upward deployment of the Forward Systems room management system.
- The Arcades division also suggested that the different decrees significantly limited activity, especially in Catalonia and the Valencian Community. During the sporadic opening periods, the division performed well thanks also to marketing plans and, especially, to the health and safety measures included within the “Play Safe” Plan.
- During the first quarter, and as the restrictions imposed in the different autonomous communities were lifted, both revenue and the main business metrics were recovering to pre-pandemic levels. The intense sporting activity throughout the quarter, as well as the reopenings in Catalonia and Valencia in mid-March, contributed decisively to the return to normal business volumes.