CIRSA reported an operating profit of €331.4 Million (+163% vs. 2020) and operating income of €1,117.3 Million (+33% vs. 2020).

23/02/22

The Company moves further down the pathway to recovering 100% of its pre-pandemic EBITDA.

Terrassa, 23 February 2022.- CIRSA, a leading multi-national gaming and entertainment company and Spain’s market leader, reported an operating profit of €331.4 million and €1,117.3 million in operating income in 2021. In the fourth quarter, an Operating Profit of €121.2 million (+137% vs. Q4 2020) and an operating income of €378.4 million (+79% vs. Q4 2020) were achieved.

In 2021, despite being a fiscal year significantly conditioned by generalized restrictions in every country where the Group operates, the company’s results evolved quarter after quarter very favourably, both in terms of revenue growth and Operating Profit growth, surpassing what was achieved in 2020 by +163%. The improvement in the results achieved throughout the year is completely aligned with the progressive recovery of pre-pandemic activity levels, as well as with the effort of the entire Organization to implement the previously outlined commercial and efficiency-productivity plans.

With regard to the fourth quarter (specifically in December), both Spain and Italy were affected by the different restrictions due to the impact of the Omicron variant. On the other hand, the Latin American markets behaved differently when dealing with the same issue, ranging from the recovery of operating hours in Panama and Colombia to severe restrictions in Countries such as Mexico, Peru and Costa Rica.

According to Joaquim Agut, President and CEO of CIRSA Group: “The implementation of our strategy, which is fully aligned with the current sustainability criteria, has been possible thanks to the efforts surrounding the implementation of plans carried out by the Organisation as a whole, and has allowed us to achieve results that are already very close to those reached before the pandemic.”

2021 Highlights

CASINOS
The profits from the Casinos division began a strong recovery starting in the second quarter of the year as a result of the progressive easing of restrictions in all of the company’s markets. It reached 90% of operating hours during the third and fourth quarters, compared to the 50% average recorded in the first quarter. In the last three months of the year, countries such as the Dominican Republic and Colombia, which had eliminated pandemic restrictions, were able to surpass 2019 profits in local currency. Morocco remained closed all year round.

SLOT
The Slots division showed a strong recovery starting in the second half of the year, since the first half was conditioned by total or partial closures in Spain. The recovery of this division is due in part to the warm reception of the latest machine models launched by Unidesa, Manhattan and Kong Chita, the correct implementation of their sales strategies, and the rapid adaptation of operations and their structures to each scenario caused by the pandemic.

ITALY
The reopening of activities in Italy began at the end of May in a staggered manner and in different regions. It was completed in the last days of June. From then on, the results of the AWP and VLT machines gradually recovered. It is worth noting that in mid-August, Italy established the mandatory Green Pass to access hospitality establishments, among others, and also maintained restrictions on room capacity during the third and fourth quarter.

ARCADES
The Arcades division benefitted from 100% of the stores being open in the last months of the year, although there was an increase in restrictions in some Spanish Autonomous Communities. Despite this, the trend in the division was positive due to the sales strategies that were implemented, clients’ trust in the health procedures in effect and the management of business operations.

SPORTIUM
The evolution of Sportium was very positive throughout the year thanks to the unique multichannel approach that characterises the brand. Strong growth in the digital channel, as well as the return to pre-pandemic volumes in the in-person channel after the lifting of restrictions, allowed us to continue improving our market share. Additionally, our efficiency plans and advanced CRM systems represented a substantial improvement in Sportium’ s profitability levels.

BINGO HALLS
Throughout 2021, the Bingo Halls division managed to improve its activity level thanks to the gradual lifting of restrictions (this was especially noteworthy in Catalonia, one of the Autonomous Communities where the division has the greatest number of Halls), as well as the implementation of specifically designed sales strategies and health procedures in order to gain our clients’ trust.

MEXICO
Also in the fourth quarter, Mexico lifted its strict time and capacity restrictions that existed throughout the year, allowing an increase in the number of customers, volume of activity and profits.

B2B (UNIDESA)
The activity in the industrial area began its greatest recovery period in the middle of the second quarter, with revenue reaching 90% of pre-COVID levels, despite increases in the cost of raw materials and parts, as well as delays in the supply chain. The excellent market acceptance of the Manhattan Advanced model in its two cabinet modalities, as well as the Kong Chita mixed machine, was decisive in consolidating UNIDESA’s leadership in the Hospitality channel. The Interactive area, specialised in arcade management systems, experienced a recovery similar to that of the HORECA channel.

About CIRSA
CIRSA is a multi-national gaming and entertainment leader and Spain’s foremost company in the sector. Its business in 9 different countries is comprised of 149 casinos, more than 82,000 gaming machines, 80 bingo halls, 248 arcades, close to 3,000 sports betting outlets, as well as the industrial division, which consists of the research, design and manufacturing of gaming machines and management systems for arcades and interconnection between machines. It also holds online gaming licenses in Spain and Colombia.

PRENSA

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Georgina Teixidó
Directora Corporativa Imagen y Comunicación
CIRSA Gaming Corporation
Tel. +34 93 739 6877 . Móvil.+34 669 814 905
gteixidoc@cirsa.com