Operator News
Spain – Cirsa increases 2018 revenues across all its jurisdictions
By Phil - 21 March 2019
Cirsa Gaming generated an operating profit of €368.8m in 2018, up 5.1 per cent from 2017, despite the strong adverse impact of the euro’s exchange rate versus other currencies in the Latin American countries where the company operates.
Operating income came in at €1,469.1m, a 5.2 per cent increase over the previous financial year.
Joaquim Agut, President and CEO of Cirsa, said: “Cirsa’s acquisition by Blackstone has made 2018 a key year for the company. I want to highlight the trust placed by the new shareholder in our Strategic Plan and in CIRSA’s team. I personally would like to thank everyone at CIRSA for their efforts and their full commitment to both the transaction and the group’s continuous growth. The immediate future will see the further implementation of our Strategic Plan, following the lines of action of the past 13 years, with a firm commitment to sustained, cost-effective growth, and focusing on each of the businesses and locations where we operate. This has enabled us to grow uninterruptedly for the past 50 quarters.”
Mr. Agut added that in order to maintain its leadership and keep moving forward as a trustworthy, reliable company, Cirsa will need to ‘anticipate the future, focusing on teamwork and its ability to perform; take initiatives related to efficiency and profitability; and rely on our in-depth knowledge of both our business and our clients.’
“This is how we can continue to make a financial, social and environmental contribution in the nine countries where we have a presence,” he explained.
One of the major highlights of 2018 was the company’s capacity for overall, organic growth in all the subsectors where it operates. This notably included the acquisitions of Casino Jaragua in the Dominican Republic, Winland Casino in Mexico, and Bingo Salou in Tarragona. The excellent performance of the B2B division should also be stressed, with the release of the new Elite cabinet and the Pearl of the Caribbean and On the Rocks games, as well as the new Sensation multi-game model for gaming halls.
All these achievements have taken place in the midst of a generally acceptable economic environment, despite the significant impact of the devaluation of the currencies from the Latin American countries where the company operates versus the euro.
The company’s revenues increased in the local currencies in the eight countries where it operates casinos. Despite the adverse impact of the exchange rate, it had an improved revenue trajectory in euros versus 2017.
The main acquisitions were Le Mirage Casino in Agadir, Morocco, Casino Jaragua, in the Dominican Republic and two new halls, El Fuerte and Dorado Mall in Panama, as well as seven major casino enlargement and refurbishment projects, mainly in Latin America.
The slots division’s revenues in Spain continued to increase in 2018. This trend started four years ago, supported by some selective purchases that optimised the return on investment and the application of operational synergies. This improvement was also enhanced by the successful introduction of the Pearl of the Caribbean and On the Rock’ models, developed by the industrial division Unidesa. The Slots division continued to implement efficiency and productivity programmes, focused on expanding services and revenues.
In 2018 the Italian Parliament approved several tax increases, applicable to last year and to the subsequent three years. This is having a significant impact on revenues. However, despite having reduced the number of AWP machines by more than 1,800, down 20 per cent, by the end of the second quarter as legally required, overall revenues remained stable.
Cirsa’s leadership in Italy over the past financial years, including 2018, has focused on maximising the revenue per terminal for both AWP machines and VLTs. This has been mainly due to the optimisation of the product mix and of the points of sale, both in the Horeca channel and in gaming halls.
The Bingo Halls division in Spain has seen a noticeable improvement in its revenues and has experienced significant growth. Of note was the successful refurbishment and expansion project of halls in Andalusia, the improvements to Dynamic Bingo in Madrid and the sales policies implemented across the entire network. An important development was also the acquisition of Bingo Salou (Tarragona, Spain).
A major highlight in Mexico was the acquisition of Winland Casino, located in Guadalajara, at the end of June 2018. It offers 575 machines, 26 tables, sports bets, a wide range of food and drink services, and 400 car park spaces. Another significant highlight was the complete integration of the casinos in the port city of Manzanillo and in Vallarta, purchased in 2017. There was a constant improvement in the sales strategy, resulting in a greater number of visitors and higher revenues which, together with the productivity programmes implemented, translated into substantially better performance.
The successful development of this division continued in 2018, reinforced by the selective opening of new arcades and the gradual implementation of the new Toka image and concept. The implementation of the new Forward Systems management solution from UNIDESA, and the installation of Sensation multi-game machines, also manufactured by Unidesa and Alfastreet’s Lucky 8 roulettes, distributed by the same industrial division all contributed to the division’s good performance.
Caption: Cirsa’s newly bought Le Mirage casino in Agadir
