Operator News

France – Fourth quarter fall in Cannes’ table revenue hinders Partouche’s 2018 growth

By Phil - 13 December 2018

A huge drop in table revenues at its Cannes casino saw French casino operator Groupe Partouche report a fall in consolidated turnover of 2.9 per cent at €99.6m.

Overall its turnover fell by €3m during its fourth quarter of 2018 running from August to October but the fall in Cannes, where the company saw three casino managers arrested by the police division of the Central Service of Racing and Gaming (SCCJ) as part of an investigation into ‘money laundering and tax evasion’ back in March, would have been the most alarming aspect.

Table revenue at its 3.14 in Cannes fell by a huge €3.6m during the quarter. The operator relocated its Cannes licence to its current location in 2017. Following its relocation last year, Casino 3.14 generated a GGR of €13,550,439, marking a hugely welcome increase of 21.53 per cent in 2017 over the 2016 figures from the previous location; Palm Beach. However since the scandal those figures have dropped although with the venue targeting a highly volatile player, the trend could have been coincidental and not due to the arrests.

Overall, throughout its casino estate, Gross Gaming Revenue (GGR) fell by 3.6 per cent or €6.2m, coming in at €166.3m due a decrease in French revenue of five per cent or €7.4m. It was also impacted globally ‘by a lower attendance.’
The group added that over the same period, sports betting registered a strong growth in Belgium, up 32.6 per cent or €1m.
Partouche also benefited during the fourth quarter 2017 from a tax return for the Casino du Lac Meyrin, which cannot be renewed this year.

Turnover excluding games reached €24.7m with a growth of 3.4 per cent, mainly due to the Parisian restaurant; Laurent.
For the year as a whole, Groupe Partouche reached an annual turnover of €410.8m up by one per cent.

Thee operator stated: “The 2018 financial year ended with a stable GGR of €638.7m, benefiting on one hand from the significant growth of sports betting up €5.7m but penalised on the other hand by €3.7m due to the variation EUR / CHF exchange rate for the two Swiss casinos of Meyrin and Crans-Montana. The GGR also remained stable, impacted by the increase in the CSG (general social contribution Tax) as of the January 1 2018 by €3.7m but favoured by the low rate of levy applied to sports betting that have experienced a strong growth. The decrease in business activity over the second half-year will automatically lead to a decrease in operating profitability over the period, a trend that started in the first half of the year.

“In continuation of its strategy of renovation and development of its establishments, Groupe Partouche transferred on November 20 2018, the Pornic Casino to a new location, which has been a great success since it opened to the public, thanks to more adapted spaces and better accessibility and car parks. In addition, the Aix-en-Provence Casino is undergoing a major renovation, which started in September 2017 and is expected to be completed at the end of January 2019. Refurbishments in progress or to be carried on during 2019 concern La Roche-Posay, Royat, Hyères and Saint-Amand-les-Eaux Casinos.”