Supplier News
Latin America – Growth in Latin America leads to Cirsa revenue increase
By Phil - 14 September 2015
Spanish gaming company Cirsa has reported growth in the first six months of 2015 due to its improved performance both in Spain and Latin America.
The Barcelona-based operator, recorded an operating profit of €182.6m an increase of 18.6 per cent on the same period of last year.
Data for the second quarter are also very positive for the group where turnover increased by 21.1 per cent between April and June, to €399.9m meaning that the company recorded an operating profit of €91.8m – 19.9 per cent more than in 2014.
According to a company statement, growth in the company was down to economic good performance of both its international business as well as improving overall from all divisions across Spain.
The statement also highlighted the progress in Mexico, where a number of measures have been taken by the government to stabilise the sector of late. The company described the growth of casinos in its Latin America division as “favourable” while refinements to its efficiency programs and marketing initiatives has been implemented successfully. Meanwhile the company has reported increases due its acquisitions in Peru and Costa Rica and benefited from the positive effect of exchange rates, with a weaker euro compared to the preceding year – all of which has led to a significant advance in the markets in Latin America.
Improving macroeconomic conditions in Spain especially in its slot division and the modernisation of older slot machines also contributed to its recent increased profits. According to the statement the main elements for growth are new regulations in the communities of Aragon and Cantabria, as well as stricter control over cost.
However, its presence in Italy has been affected by additional taxes imposed by the government of Matteo Renzi. This however has been partially offset by optimising levels of revenue per machine. It also maintains the lead in the video lottery presence in gaming and bingo. Meanwhile in Spain the company reported increases in its bingo halls and made further inroads in the market via Sportium – its sports betting division.
Last year CIRSA added two new rooms in Argentina with 900 machines. It has also recently acquired a new operator in Peru with nine slot halls and 1,200 machines. In March this year CIRSA bought seven Thunderbird owned gaming operations in Costa Rica, including seven casinos, 21 gaming tables and 1,200 slot machines in exchange for US$33.5m. The move made Cirsa the number one gaming operator in Costa Rica and also strengthens its market position as market leader in Latin America with a total of 129 gaming operations in the region.
