In 2020, CIRSA generated an operating profit of €126 million and operating revenue of €842 million
Terrassa, 18th February 2021.- CIRSA, a leading global gaming and leisure company and the first company in the sector in Spain, generated an operating profit of €126 million in 2020, of which 51 million corresponds to the last quarter of the year. The operating revenue was €842 million, 211 of which was generated between October and December.
After a great start to the year with results in January and February of +28% with respect to the previous financial year, as a result of COVID-19, the Group’s activity was heavily impacted during the month of March due to the widespread suspension of all its operations throughout the world, as well as by the subsequent and continued suspension of activities during the rest of the financial year. Across the world in the hospitality and gaming sectors, establishments were intermittently allowed to reopen and different types of restrictions were put in place, thus preventing the company from operating normally.
Despite the strong reduction in operating capacity (45% fewer productive hours than in a standard year), the Group managed to reduce the impact on revenue and results thanks to its “Secure Gaming” plan. This facilitates the recovery of customers and income after each reopening.
With the Secure Gaming Plan, accredited by the independent auditor Full Audit, and with the cost control plans, enabled savings of 60%, the Group managed to close the year with a positive operating profit despite the enormous operational difficulties caused by the pandemic.
On the other hand, the Group’s solid financial structure allowed for high levels of liquidity to be maintained throughout the year.
The rapid recovery of revenue following each reopening and the aforementioned structural reduction in costs, together with the strong liquidity position, allow the Group to face the operational restrictions that are expected throughout 2021 until normal activity resumes with complete peace of mind.
2020 Highlights CASINOS
- The results of the Casinos division were marked by the widespread closures in all countries since March. Establishments were reopened in different geographical regions in phases, starting with Spain, where the first reopening took place after the establishment had been closed for 86 days. In Latin America, for example, Panama reopened in October (closed for 210 days) and Peru on 09/12/20 (closed for 268 days), a situation very similar to that experienced by the other countries in which we operate.
- The gradual recovery of commercial activity and customer visits, despite establishments continuously closing and reopening, was due to the successful implementation of commercial plans in the different markets, and the comprehensive health and safety plan, “Secure Gaming”, which undoubtedly contributed to a rapid recovery in the confidence employees and customers had in the company.
- After the closures in Spain from March, and the successive closing and restarting of activities and other restrictions in the different Autonomous Communities, the Slot Machines division saw a decent recovery of income in the reopening period. This was boosted by the latest models of machines launched by UNIDESA (Manhattan and Oro del Faraón – Pharaoh’s Gold), which became the best performing on the market.
- Like Spain, Italy experienced periods of total lockdown in 2020, as well as strongly restricted opening hours and capacity when establishments were reopened and closed again from May onwards. The contingency and health and safety plans were critical for mitigating the impact of the pandemic on the Group’s activity in the country and were focused on maintaining machine collection management, both in AWP and VLT, and in the case of halls to reactivate contact with our customers.
- During 2020, the Bingo Division was impacted by the closures and strong restrictions faced by the sector. In this period, the adaptation and execution of the commercial plans allowed for a good level of activity in both Traditional Bingo and the rest of the hall offering, in the sporadic periods of activity. The division also took advantage of the periods of closure to make improvements to several halls.
- In the first quarter of the year, the results in the country were significantly better than in 2019. The gradual closing of activity derived from the restrictions established by the different Administrations starting in mid-March called for the implementation of several contingency plans and training in health protocols for all staff, prior to the phased opening of some of the halls that began in the third quarter.
- Several halls in the country were visited by different state and municipal authorities, who highlighted the superb implementation of health safety and prevention protocols for customers and employees.
- The arcade division also suffered from the different decrees that significantly impacted the activity of different sectors, including gaming. The division was particularly affected in Catalonia, where private gaming activities had to be suspended in mid-October.
- When establishments were open, the division performed well thanks also to the commercial plans and, especially, to the health and safety measures included within the “Secure Gaming” Plan. This was widely accepted by customers and thus resulted in a good number of visits despite the different opening restrictions imposed in each region.
B2B – (UNIDESA)
- The activity in the manufacturing area was also affected by the general closure of the sector, although UNIDESA continued to market the Manhattan and Pharaoh’s Gold machines, with which it continues to lead the hospitality channel at a national level. In the Arcades, UNIDESA stood out in the second half of the year for the commercial launch of Storm Cash, which was received very well by customers, and for the gradual growth of its management system for this type of room (Forward Systems).
- Despite the intermittent activity of the retail business, Sportium maintained a good level of activity that was consistent with the calendar of the main sporting events. Efficient resource management helped maximise revenue and optimise costs throughout the year. The digital channel, which remained fully operational throughout the year, continued its positive progression towards significant growth rates.