Posted on: November 29, 2022, 08:10h.
Last updated on: November 29, 2022, 08:10h.
Spain-based gaming giant Cirsa is on track to close out 2022 on a high note. In the third quarter, its net profit was €23.7 million (US$24.57 million), a substantial improvement over its €34.4 million (US$35.66 million) loss a year ago.
Cirsa’s latest financial health report shows that it earned €37.8 million (US$39.18 million) between January and September of this year. Its EBITDA (earnings before interest, taxes, depreciation and amortization) was €397.8 million (US$412.4 million), 89.2% more than a year ago.
Across the first three quarters, the Blackstone Group-controlled multinational gaming operator raised its operating income by 68.5%, reaching €1.24 billion (US$1.28 billion). As a result, it’s ready to forge new alliances and find new expansion targets for 2023.
The Casino Marbella owner attributed the improvement in results to “a good implementation of the operating plans by the different business units, in an environment of macroeconomic and geopolitical adversity.”
For the first time since prior to the start of the COVID-19 pandemic, the company has improved all business segments. This follows the reopening of the Moroccan gaming market and the lifting of restrictions in Mexico.
The increase also comes in spite of Russia’s illegal invasion of Ukraine and inflation in Europe. Cirsa highlighted that neither the war nor the changes in the cost of living in Europe impacted its operations in Latin America or Morocco. Both of those regions enjoyed solid increases in the quarter, while Europe continues to show promise, albeit at a slower pace.
All of Cirsa’s business segments have already recovered to pre-COVID-19 levels in terms of EBITDA generation. In addition, the online gaming section, where its sports betting subsidiary Sportium stands out, already accounts for 14.3% of turnover. In the second quarter, the sportsbook was only good for 8.8% of the company’s turnover.
Cirsa’s casino division saw huge gains as a result of the post-COVID-19 recovery efforts and an increase in traffic. Along the same lines, the bingo division continued to improve through customer loyalty and recovery actions, according to Cirsa.
Cirsa, which operates in nine countries, has 150 casinos, 78 bingo halls, 248 gaming rooms and around 3,000 sports betting points. It also operates gaming arcades in Spain, with over 82,500 games available.
Cirsa is close to launching its third casino in Tangier, Morocco. Earlier this year, its Sportium brand gained access to the Italian gaming market when it acquired a controlling stake in E-Play24. The latter is a full-service online gaming platform, offering a casino, poker, sports betting and more.
This expansion, coupled with strong results as 2022 starts to wind down, will provide a solid foundation for further growth. The company recently added €425 million (US$441.4 million) through senior notes, some of which will also facilitate expansion.
With it, the company is also partially refinancing €563 million (US$584.73 million) from July 2018. These bonds will pay interest of 10.375% and mature in 2027.
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