Spain – CIRSA confirms full recovery with all core businesses outperforming pre-COVID tradingBy Phil - 24 February 2023
Spanish and Lat Am operator CIRSA saw a full recovery in 2022 with all core business division able to ‘return and outperform pre-COVID 2019 trading.’
CIRSA generated €1,741.2m in operating revenues and an operating profit of €552.5m in 2022.
In 2022, results developed very favourably quarter after quarter, both in terms of revenue growth and operating profit, which was +up 66.7 per cent higher than in 2021. In a complex economic environment, due to the impact of Covid restrictions on revenues and widespread cost increases, this achievement has been possible thanks to the efforts of the entire organisation in implementing the scheduled business, efficiency and productivity plans. It is also worth noting the acquisition of the Italian online gaming company E-Play24, which reinforces the Group’s omni-channel strategy.
In the fourth quarter, the company achieved operating revenues of €496m, up 31.1 per cent from last year and an operating profit of €154.6m, up 27.6 per cent. The return to pre-pandemic levels of activity and the implementation of the plans described above have contributed to improved results in all business areas.
Joaquim Agut, Executive Chairman of the CIRSA Group, said: “Without the commitment of the entire organisation in achieving both our financial and sustainability objectives, it would not have been possible to return to the path of historic quarterly growth, and thus exceed the results achieved in 2019, just before the pandemic”.
The results of the casinos division improved in line with the favourable evolution of Covid restrictions in the different countries. A particular impact was felt from the third quarter of the year due to the opening of the Moroccan market in May, as well as the strict execution of business and efficiency plans, which exceeded the 2019 results in the second half of the year. In the Division, the incorporation of the Tangiers casino in May is noteworthy.
In the fourth quarter, the slot machines division in Spain consolidated the clear recovery in revenues and Ebitda that had been taking place throughout 2022. This also allowed it to improve on the results obtained in the fourth quarter of 2019.
Mr. Agut explained: “The warm acceptance by our customers of our gaming offer through the operation of successful models such as Manhattan and Kong Chita, and the rigorous implementation of various productivity plans, explain these results. In Italy, we started 2022 still with significant restrictions that had a direct impact on consumption. However, in the last two quarters of the year we observed an improvement in the trend of the two business areas (AWP and VLT), which should allow for a positive inertia at the beginning of 2023.”
The Arcades division continued to improve the level of activity of previous months due to the operational management of the business and the continuity of the customer loyalty and recovery actions implemented.
The results of the online gaming and sports betting division, Sportium, were very positive, with growth in both revenue and market share compared to the previous year. Seasonality was marked by the World Cup in Qatar, with favourable results across all channels and geographies.
Following the strategy of strengthening the brand’s position in the different markets, an agreement was initiated with Manchester City, as the club’s official sponsor for the main countries where the company operates (Spain, Italy and Latin America).
The Bingo Halls division, which experienced significant growth from annex halls, maintained the trend of positive results thanks to the action plans implemented that focused on customer loyalty and satisfaction.
Activity in the industrial area experienced a full recovery thanks to sales of Manhattan Reelvolution, Fireshot Bar, Kong Chita and China Legends in the hospitality channel, and Fireshot Link and Link Mix in the arcades channel.
The month of December witnessed a milestone in the history of Unidesa, and also for the sector, as the 25,000th Manhattan machine was manufactured and sold. This was despite continued price increases in raw materials and components, as well as delays in the supply chain.
The interactive area, which specialises in gaming room management systems, saw growth with Forward Systems installations continuing throughout Spain continued.
Cirsa operates in nine countries is made up of 146 casinos, more than 81,000 slot machines, 78 bingo halls, 241 arcades, and nearly 3,000 sports betting locations. Its industrial division includes the research, design and manufacture processes for slot machines and management systems for gaming halls and machine interconnection. It also has online gaming licences in Spain, Italy, Colombia, Panama and Mexico.