The full recovery of activity levels in all the markets where the Group operates and the efficient execution of its strategy allowed it to improve its operating profit by 27.9% compared to the first quarter of 2022.
Today the company releases its new 2022 ESG report, which outlines its commitments and results on environmental issues, social responsibility and governance.
Terrassa, 24th May 2023 – CIRSA, a leading global gaming and entertainment company and Spain’s market leader, reported operating revenues of €482.5 and an operating profit of €151 million in the first quarter of 2023.
These results confirm the full recovery of pre-pandemic levels of activity and the continuous improvement of the Company’s results, allowing it to outperform in terms of operating revenues by 29.2% and of operating profit by 27.9%, compared to the first quarter of 2022.
On the other hand, the company publishes its new 2022 ESG report today, which outlines CIRSA’s commitment to grow its business responsibly and sustainably. It also highlights its strategic lines of action in environmental sustainability, social responsibility and good governance for the future. The Report uses both the Global Reporting Initiative (GRI) standards, as well as what is defined in the draft ESRS (European Sustainability Reporting Standards) regarding the materiality assessments of companies. The Report and other ESG-related materials can be found on the Company’s website at https://www.cirsa.com/cirsa/investor-relations/esg-report/
According to Joaquim Agut, Executive Chairman of the CIRSA Group, “in the first quarter of 2023, all our business units have demonstrated strong performance and confirmed the trend for continuous improvement, with the entire CIRSA team having been involved in the implementation of our operational plans. Despite current global economic and geopolitical uncertainties, our commitment remains focused on aligning the execution of our business strategy with the ESG principles that are most relevant to our industry.”
Highlights of the first quarter of 2023 CASINOS
The results from the casino and gaming halls division have been marked by an upward trend in all geographic areas where the company operates, thanks to the execution of commercial and cost- efficiency plans. A new casino has been added in Tuxtla (Mexico) during this first quarter.
In addition, we have continued to improve our gaming and entertainment offer in our halls, incorporating ESG criteria into all of our investments.
SLOT MACHINES – SPAIN
The priority has been to continue with the correct execution of commercial plans based on a selective search for the highest quality points of sale, the adaptation of best product to each location and the improved productivity in our logistics and service platform.
The activity in the industrial area continues at a very good pace, thanks to the high performance of product launches, such as the new Manhattan models for the bar and restaurant channel and the Link Mix models in the arcades channel. The division has also launched Manhattan Party, a new product from the Manhattan saga that continues to be a bestseller. Raw materials and components inflation has stabilised, and lead times are normalising in the supply chain. In the Interactive area, which specialises in gaming hall management systems, the growth in Forward Systems installations throughout Spain continued at a steady pace.
SLOT MACHINES – ITALY
The Italian operation experienced a positive impact on recurring organic revenues of AWP and VLT over 2022, thanks to the various improvement actions implemented during the previous year in innovation and sales.
ONLINE GAMING AND BETTING
Results from the online gaming and sports betting division, focused solely on regulated markets, exceeded expectations raised in the operating plan, with growth in both revenue and market share across channels and markets. The division continues to strengthen its multichannel strategy as well as customer intelligence management. In addition, during this period the use of Manchester City’s geo-located digital assets was initiated as part of the sponsorship agreement with the club.
The return to normality in virtually all the markets where the Company operates enabled it to exceed the pre-pandemic result for 2019.
The company increased its turnover by 55.8% compared to 2021.
First Spanish Group to obtain Responsible Gaming certification from the international certifying body G4.
Terrassa, 22 February 2023. CIRSA, a multi-national gaming and entertainment leader and Spain’s first company in the sector, generated €1,741.2 million in operating revenues and an operating profit of €552.5 million in 2022.
In 2022, results developed very favourably quarter after quarter, both in terms of revenue growth and operating profit, which was +66.7% 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 €496 million (+31.1% vs. Q4’21) and an operating profit of €154.6 million (+27.6% vs. Q4’21). 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.
According to Joaquim Agut, Executive Chairman of the CIRSA Group, “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”.
2022 Highlights CASINOS
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.
SLOT MACHINES
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.
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.
ARCADES
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.
SPORTIUM
The results of the online gaming and sports betting division 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).
BINGO HALLS
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.
B2B – UNIDESA
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. In the Interactive area, which specialises in gaming room management systems, the growth of Forward Systems installations throughout Spain continued.
Terrassa, 23 November 2022 – CIRSA, a leading global gaming and entertainment company and Spain’s market leader, reported an operating profit of €147,5 million in the third quarter of 2022 (+46,7% vs. Q3 2021). Operating income from July to September was €466,8 million (+39,4% vs. Q3 2021). Compared to pre-COVID figures in 2019, operating profit in the third quarter increased by +24,3%.
In the first nine months of 2022, the company accumulated an EBITDA of €397,9 million and an operating
income of €1.245,2 million.
These results confirm the company’s upward revision from last October, which it provided to the markets, improving its third-quarter forecast by more than €12 million. This improvement is due to the excellent implementation of operational plans by the different business units amid an environment of macroeconomic and geopolitical adversity.
Q3 2022 Highlights
CASINOS
In the third quarter, we were able to increase pre-pandemic activity thanks to the recovery, an increase in visits and the strict execution of commercial plans. Our revenue continued to improve in all countries, surpassing those of 2019 in this quarter, despite some restrictions being maintained in some of them. It is worth noting the good performance of the three casinos in Morocco after they opened on 5 May.
SLOT ROUTE OPERATION
The Slot Route Operation division maintained its positive trend from previous periods despite being a challenging quarter for hospitality establishments in Spain, especially as a result of significant cost increases, and those related to energy. Continued investment in curating our innovative and cutting-edge product offering has been a determining factor. In this aspect, the good performance of UNIDESA’s Manhattan and Kong Chita models (Division B2B) continued to stand out.
ITALY
The first two quarters of the year were still impacted by the effects of the pandemic on the economy. Even so, Italy managed to improve revenues on VLT machines and Bingo halls, maintaining the AWP’s activities in the hospitality channel.
ARCADES
The Arcades division maintained the trend of positive results due mainly to the action plans implemented that focused on customer satisfaction.
SPORTIUM
The results of the online gaming and sports betting division were very favourable, with significant increases compared to the previous year. All of this was due to an excellent reactivation, coinciding with the start of the main sports competitions. In addition, efficient marketing management, as well as customer intelligence, continue pushing the consistent improvement in results. In addition, the recent acquisition of 60% of the Italian company E-Play24 has allowed the division to enter the Italian online gaming market and double its turnover.
BINGO HALLS
During the third quarter, the Bingo Halls Division continued to improve activity levels compared to the previous quarter, due to continued customer loyalty and recovery actions, implemented since the lifting of hourly restrictions.
B2B – UNIDESA
The Fire Shot Bar and China Legends models for hospitality were introduced in September and will help maintain UNIDESA’s leadership in this channel. The Manhattan Reelvolution model continued to be the gold standard in the Spanish market.
For the Arcades subsector, Link Mix was also introduced. This is a LINK product that incorporates two multi-game bundles, Hit The Link and Fire Shot Link, with Jackpot sharing.
In the Interactive area, there was a significant increase in numbers for Spain and Mexico in arcades that adopted the Forward Systems management system.
Operating revenue grew by 61.7% thanks to the favourable evolution of Latin America and the good level of activity in Europe
Terrassa,7 September 2022 – CIRSA, a leading global gaming and entertainment company and Spain’s market leader, has reported an operating profit of €132.2 million in the second quarter of 2022 (+63.1% vs. 2021). Operating revenue from April to June amounted to
€400.2 million (+61.7% vs. 2021). Compared to pre-COVID figures in 2019, operating profit in the second quarter stood at +18.8%.
In the first half of 2022, EBITDA was €250.3 million (+128.2% vs. H1 2021) and operating revenue reached €778.4 million (+92.7%), successfully consolidating the recovery that began in the second half of 2021 and improving the 2019 results for the same period.
These results have been made possible thanks to the implementation of the operational plans prepared by different business units, which were already put into operation in all markets under normal conditions in terms of operating hours and other restrictions. The Group’s commitment will remain focused on improving results, concentrating on customer service and productivity, the two fundamental pillars in the Group’s sustainable growth, even in an adverse macroeconomic environment.
In line with the strategy relating to selective purchases in markets where the Group is present, the Company reached a management agreement to operate the only casino in the city of Tangier (Morocco). Already at the start of the third quarter, was closed the acquisition of a 60% stake in Eplay24, an Italian sports betting and online gaming operator with a strong omnichannel activity.
Q2 2022 Highlights CASINOS
The division maintained the recovery that started in the first quarter of 2022 thanks to the recovery and increase in visitors, the excellent implementation of commercial plans and the reopening of casinos in Morocco in May, after more than two years of inactivity. Revenue performance has continued to improve month-on-month in all countries, with revenues in June over those of 2019.
SLOT MACHINES
Models developed by the B2B division (UNIDESA) continued contributing to the great results of this division, which consolidated the revenue recovery in the first quarter of 2022.
ITALY
Following the same trend, Italy recorded an improvement in revenue in both VLT and AWP machines and in halls.
ARCADES
The Arcades Division also consolidated the improvement that began in the first quarter, achieving levels of activity higher than the pre-COVID period thanks to the systematic execution of commercial plans and the operational improvements implemented.
SPORTIUM
The results of the sports betting division were very positive, supported by the favourable seasonality of the sports calendar. Excellent customer intelligence management and the brand’s omnichannel approach continued to be key to maintaining the pace of growth in all its channels and markets.
BINGO HALLS
From April to June, the division continued to improve the level of results based on the customer loyalty and recovery actions, implemented since the lifting of restrictions.
B2B – UNIDESA
The second quarter saw the consolidation of the new product in the Manhattan line, Manhattan Reelvolution, the best-selling product in the Hospitality channel, which, together with the Kong Chita model, allowed the brand to reaffirm its leadership in the Horeca channel in Spain. In the Arcades subsector, the marketing of Dragon Bonus and Fireshot Link was launched.
The Interactive division, which specialises in arcade management systems, also saw an increase in market share thanks to new functionalities.
The recovery of the activity, practically in all markets where the Company operates, allowed to overcome the pre-pandemic results from the first quarter of 2019 (+14.2%)
Terrassa, 25 May 2022 – CIRSA, a leading global gaming and entertainment company and Spain’s market leader, reported an operating profit of €118.1 million in the first quarter of 2022 (+312% vs. 2021). Operating income from January to March totalled €378.2 million (+141.8% vs. 2021).
These results indicate the Company’s positive performance, which started in the second half of 2021, allowing it to achieve operating income and exceed EBITDA (+14.2%) from the first quarter of 2019 (pre-COVID period).
According to Joaquim Agut, Executive Chairman of the CIRSA Group, “the key to maintaining the positive trend of our results is having an organisation and a team capable of optimally executing the operating and business plans. These plans have allowed us to cope with and respond to a past context of strong restrictions and, above all, record a quick and robust recovery as those restrictions have been lifted and allowed for more hours of activity”. “This planning and response capacity is a line of action that we will continue to apply with the utmost prudence and efficiency considering the current global economic and geopolitical uncertainty”, Agut said.
Overall, the first quarter highlighted the good performance of different businesses in Spain, where an average of 100% of operating hours was reached considering the strict restrictions imposed during the first quarter of 2021. In Latin America, the positive trend continued in all countries as operating hours increased and capacity restrictions and other pandemic prevention measures eased.
Q1 2022 Highlights CASINOS
The results of this business unit were marked by the impact of the Omicron variant in January, and some normality was restored in several countries from February with an easing of restrictions and an improvement in operating hours very similar to before the pandemic. Morocco remained closed during the entire first quarter.
SLOT MACHINES
The Slot Machines business unit outperformed last year’s first quarter result thanks to the correct execution of the business and production plans. It was also a fundamental piece in the good development of this business unit the management of the park with the success of the models of the B2B division (UNIDESA).
ITALY
In Italy, the most noteworthy revenue recovery for both VLT and AWP machines began at the end of the first quarter, which coincided with the improvement of country consumer rates following a strong impact of the Omicron variant in January and February.
ARCADES
The Arcades business unit maintained the positive results trend thanks to having 100% of operating hours, as well as to the business plans and operational improvements implemented.
SPORTIUM
The results of the sports betting business unit were very positive thanks to the multichannel approach (retail and online) in different markets, as well as the brand’s advanced CRM systems.
BINGO HALLS
During the first quarter, the level of activity of this business unit improved substantially thanks to the lifting of restrictions, especially in Catalonia, as well as confidence in the health protocols still in force and the commercial actions implemented in all halls.
B2B – UNIDESA
The Madrid International Gambling and Gaming Trade Show held in March marked the course of the first quarter. UNIDESA introduced Manhattan Reelvolution to the Hospitality channel, a new product from the Manhattan saga that continued to be a bestseller. This model, along with the Kong Chita mixed machine, placed the industrial division as undisputed leader of the Horeca Chanel
For the arcade business, the industrial area launched two new products, Fire Shot Link and Dragon Bonus, which started off a good roll-out nationwide despite supply chain delays.
Finally, the Interactive area, specialising in arcade management systems, presented the new Forward Systems modules focused on access control and the mobile-integrated loyalty card, among other functionalities.
Terrassa, 23 February 2022.- CIRSA, a leading multi-national gaming and entertainment company and Spain’s market leader, reported an operating profit of €331.4 million and €1,117.3 million in operating income in 2021. In the fourth quarter, an Operating Profit of €121.2 million (+137% vs. Q4 2020) and an operating income of €378.4 million (+79% vs. Q4 2020) were achieved.
In 2021, despite being a fiscal year significantly conditioned by generalized restrictions in every country where the Group operates, the company’s results evolved quarter after quarter very favourably, both in terms of revenue growth and Operating Profit growth, surpassing what was achieved in 2020 by +163%. The improvement in the results achieved throughout the year is completely aligned with the progressive recovery of pre- pandemic activity levels, as well as with the effort of the entire Organization to implement the previously outlined commercial and efficiency-productivity plans.
With regard to the fourth quarter (specifically in December), both Spain and Italy were affected by the different restrictions due to the impact of the Omicron variant. On the other hand, the Latin American markets behaved differently when dealing with the same issue, ranging from the recovery of operating hours in Panama and Colombia to severe restrictions in Countries such as Mexico, Peru and Costa Rica.
According to Joaquim Agut, President and CEO of CIRSA Group: “The implementation of our strategy, which is fully aligned with the current sustainability criteria, has been possible thanks to the efforts surrounding the implementation of plans carried out by the Organisation as a whole, and has allowed us to achieve results that are already very close to those reached before the pandemic.”
2021 Highlights CASINOS
The profits from the Casinos division began a strong recovery starting in the second quarter of the year as a result of the progressive easing of restrictions in all of the company’s markets. It reached 90% of operating hours during the third and fourth quarters, compared to the 50% average recorded in the first quarter. In the last three months of the year, countries such as the Dominican Republic and Colombia, which had eliminated pandemic restrictions, were able to surpass 2019 profits in local currency. Morocco remained closed all year round.
SLOT
The Slots division showed a strong recovery starting in the second half of the year, since the first half was conditioned by total or partial closures in Spain. The recovery of this division is due in part to the warm reception of the latest machine models launched by Unidesa, Manhattan and Kong Chita, the correct implementation of their sales strategies, and the rapid adaptation of operations and their structures to each scenario caused by the pandemic.
ITALY
The reopening of activities in Italy began at the end of May in a staggered manner and in different regions. It was completed in the last days of June. From then on, the results of the AWP and VLT machines gradually recovered. It is worth noting that in mid-August, Italy established the mandatory Green Pass to access hospitality establishments, among others, and also maintained restrictions on room capacity during the third and fourth quarter.
ARCADES
The Arcades division benefitted from 100% of the stores being open in the last months of the year, although there was an increase in restrictions in some Spanish Autonomous Communities. Despite this, the trend in the division was positive due to the sales strategies that were implemented, clients’ trust in the health procedures in effect and the management of business operations.
SPORTIUM
The evolution of Sportium was very positive throughout the year thanks to the unique multichannel approach that characterises the brand. Strong growth in the digital channel, as well as the return to pre-pandemic volumes in the in-person channel after the lifting of restrictions, allowed us to continue improving our market share. Additionally, our efficiency plans and advanced CRM systems represented a substantial improvement in Sportium’ s profitability levels.
BINGO HALLS
Throughout 2021, the Bingo Halls division managed to improve its activity level thanks to the gradual lifting of restrictions (this was especially noteworthy in Catalonia, one of the Autonomous Communities where the division has the greatest number of Halls), as well as the implementation of specifically designed sales strategies and health procedures in order to gain our clients’ trust.
MEXICO
Also in the fourth quarter, Mexico lifted its strict time and capacity restrictions that existed throughout the year, allowing an increase in the number of customers, volume of activity and profits.
B2B – UNIDESA
The activity in the industrial area began its greatest recovery period in the middle of the second quarter, with revenue reaching 90% of pre-COVID levels, despite increases in the cost of raw materials and parts, as well as delays in the supply chain. The excellent market acceptance of the Manhattan Advanced model in its two cabinet modalities, as well as the Kong Chita mixed machine, was decisive in consolidating UNIDESA’s leadership in the Hospitality channel. The Interactive area, specialised in arcade management systems, experienced a recovery similar to that of the HORECA channel.
From April to June, capacity, in terms of productive hours, amounted to 62.4% when compared to a conventional quarter, which is a notable improvement on the previous quarter’s figure of 33%
Terrassa, 9 September 2021 – CIRSA, a leading multi-national gaming and entertainment company and Spain’s leader in the sector, has reported an operating profit of €81.1 million in the second quarter of 2021. Operating revenue from April to June amounted to €247.5 million.
These results mainly reflect the gradual lifting in restrictions that occurred from April to June in 8 of the 9 countries where the company is present—with the exception of Morocco—and which resulted in opening hours reaching 62.4% of capacity for the quarter as a whole, almost double the previous quarter. Substantial improvement in revenue also resulted from the well-executed implementation of commercial action plans, as well as the introduction of a broad programme of measures to improve efficiency and productivity. With all, EBITDA reached nearly 70% of that normally obtained in a conventional pre-covid quarter.
In Spain, this trend of improvement from April to June was consolidated in most of the Autonomous Communities and sub-sectors (casinos, bingo halls, arcades and the hospitality channel), as well as in Sportium’s retail and online business. The latter achieved a growth of 66% compared to the same period in 2020. In Italy, the authorities allowed activity to resume in a staggered fashion from the beginning of June, after more than seven months with all operations being completely closed. In Latin American countries, the general trend during the second quarter was a more continuous opening of the gaming rooms, although still with heavy restrictions on capacity, opening times and complementary services, all due to the incidence of the pandemic in the different countries, leading to quarterly operating-hour average of 65%.
Spain and Italy are now currently working at 90% of operating capacity in terms of productive hours, while Latin American countries are now at around 75%, percentages that the Company expects to continue to improve over the coming months.
The recovery in revenue following the re-openings, the permanent introduction of efficiency and productivity measures, together with its strong cash position, are all enabling the Group to cope with the operational restrictions that are expected to continue throughout 2021 until normal activity resumes completely.
Q2 2021 Highlights CASINOS
The evolution of the pandemic allowed there to be an overall improvement in casino opening hours in all markets, especially in Colombia, the Dominican Republic and Costa Rica, as compared to the more severe restrictions seen in Panama and Peru.
SLOT MACHINES
ITALY
The Slot Machine division in Spain has seen a notable improvement over the last few quarters thanks to the good performance of UNIDESA’s Manhattan model (B2B Division) and the improvement of hospitality occupancy rates in general, as well as a decrease in the number of closures and the gradual lifting of restrictions.
In the second quarter, the Italian market started resuming operations in early June in a staggered fashion, in the various different regions, until its complete re-opening on the 26th of that same month. As in the previous re-opening and in line with the progress seen in Spain, revenues from both AWP and VLT machines recovered very positively.
ARCADES
The Arcades division was able to reopen all its establishments during the second quarter, with different limitations being imposed in each of the Autonomous Communities. Despite this, the division performed well thanks to the commercial plans implemented, as well as the health and safety measures contemplated in the “Play Safe” Plan.
SPORTIUM RETAIL AND ONLINE DIVISION
In the second quarter, Sportium achieved a level of business activity similar to that before the pandemic, thanks to a progressive lifting in restrictions, the celebration of multiple sports competitions and the start of the European Football Championships at the end of the quarter.
BINGO HALLS
Despite the different restrictions at the regional level, the Bingo Hall division in Spain saw a progressive recovery in its results thanks to having all its bingo halls open again, the various commercial initiatives taken and the maintaining of health prevention measures.
MEXICO
Despite the significant restrictions imposed and the continuous “Stop & Go” of business activity in the different cities where the company operates, the country also saw an improvement in results, thanks to the partial re-opening of almost all the gaming rooms. The positive progress seen in the results was also accompanied by new commercial plans introduced.
B2B – UNIDESA
The industrial division continued with the recovery that had already begun at the end of the first quarter, due to increased sales through the Hospitality channel. The launch of the new Manhattan Advanced model contributed very significantly to maintaining UNIDESA as a prominent leader in this market segment. The Interactive division, in turn, saw continued growth through the installation of new gaming room management systems.
Operating capacity during productive hours from January to March decreased by 66% compared to a conventional quarter before the pandemic
Terrassa, 19th May 2021 – CIRSA, a leading global gaming and entertainment company and Spain’s market leader, reported an operating profit of €28.6 million in the first quarter of 2021. Operating revenue from January to March totalled €156.4 million.
These results correspond to the closures and continuous restrictions on opening times and capacity, brought about by the pandemic, that continued to impact all markets and businesses in which the company is present during January, February and mid-March. This effect resulted in a significant reduction in operating hours from a conventional pre- Covid month that was 29% in January, 24% in February and began to recover in mid- March to reach 44%. Both in April and in the first few weeks of May, there has been an overall improvement in operating hours derived from the acceleration of the vaccination process and its positive impact on restrictions.
In Spain, the closures and restrictions affected casinos, bingo halls, gaming rooms and the hospitality channel in practically all autonomous communities, with the closure months in Catalonia (October 2020 – March 2021) and the Valencian Community (January – April 2021) standing out. Sportium’s online business was the only one that continued to operate fully during the first quarter.
In Latin America, the casinos in Panama and Peru remained closed for more than two months in the first quarter, while activity in Colombia, Mexico, Costa Rica and the Dominican Republic suffered the impact of sporadic closures and heavy restrictions on opening hours and capacity during days for which they were open from January to March 2021. In Morocco and Italy, there has been no operating activity since March and November 2020, respectively.
In all places where reopenings and the lifting of restrictions are taking place, confirmation of a rapid recovery of revenues continues, that, together with immediate and flexible management of costs and the solid liquidity position, allow the Group to confront, with full guarantees, the operating restrictions that are expected in the coming months until normal activity resumes.
Q1 2021 Highlights CASINOS
The gradual openings, although with heavy restrictions in Colombia, Costa Rica and the Dominican Republic, enabled a rapid recovery of customers reaching 80% of revenue compared to the same pre-Covid period.
SLOT MACHINES
The prolonged closures and opening restrictions in the hospitality channel in the vast majority of autonomous communities in Spain continued to have an impact on the division’s activity. During the partial openings, the plans for reactivation and the positive reaction towards cutting-edge models such as Manhattan and el Oro del Faraón allowed recovery to start at the end of the first quarter.
BINGO HALLS
The bingo hall division in Spain suggested that the multiple and different regulations significantly limited its activity in the different autonomous communities, especially in the months of January and February. Despite this, it achieved an acceptable recovery of revenue in the reopening periods that, together with the contingency plans and loyalty actions, appeased results in this difficult stage.
MEXICO
In the first quarter, the Mexican market continued to be overshadowed by closures, and restrictions on opening hours and capacity, so both employees and customers continued to trust the health and safety protocols implemented by the Group. This, together with implementation of the corresponding marketing plans, allowed the company to continue relying on the loyalty of customers during opening hours.
B2B – UNIDESA
In March, the manufacturing division began a recovery in sales compared to the first two months of the year, despite the complicated situation of many operating companies being affected by the closures and/or reductions in hospitality channel activity hours. The Interactive division continued with the upward deployment of the Forward Systems room management system.
ARCADES
The Arcades division also suggested that the different decrees significantly limited activity, especially in Catalonia and the Valencian Community. During the sporadic opening periods, the division performed well thanks also to marketing plans and, especially, to the health and safety measures included within the “Play Safe” Plan.
SPORTIUM
During the first quarter, and as the restrictions imposed in the different autonomous communities were lifted, both revenue and the main business metrics were recovering to pre-pandemic levels. The intense sporting activity throughout the quarter, as well as the reopenings in Catalonia and Valencia in mid-March, contributed decisively to the return to normal business volumes.
Terrassa, 24th November 2020 – CIRSA, a leading global gaming and entertainment company and Spain’s market leader, reported an operating profit of €37.5 million in the third quarter of 2020. Operating income from July to September was €232.8 million. The cumulative result for the first nine months of 2020 was an operating profit of €74.9 million and an operating income of €630.9 million.
Despite the operations and results still suffering a strong impact from the closures and all kind of restrictions derived from the pandemic, the improvement of Q3 results compared to the Q2 was due to hospitality activities and gaming subsectors reopening in Spain and Italy in June. The reopenings in these two European countries meant a growth in the slot machine division compared to the same period in 2019. In Latam the gradual reopening at the end of Q3 of gaming halls in the Dominican Republic, and partially in Mexico and Colombia under significant time and capacity restrictions, had no significant impact on the Group’s results. Likewise, Sportium’s contribution was noteworthy due to the return of the main sporting competitions and the continuous improvement of the product.
Costa Rica and Panama were added to these reopenings in mid-October with restrictions on time, capacity and additional services dictated by the various state, regional and local authorities. Business in Peru, Morocco and part of Mexico (7 halls) remain closed.
In the reopenings, CIRSA continued to demonstrate the effectiveness of the health and safety plan and the “Play Safe” offer, designed from early March and applied since the first day of the new openings. The plan has been one of the key elements in gaining the trust of clients since the first openings, being able to implement it with the highest security standards for both clients and workers. Likewise, from the different states of alert, the Company has implemented multiple measures to safeguard its sustainability in the short, medium and long term, mainly protecting liquidity and reducing operating costs. Thus, the Group’s liquidity at the end of the third quarter was €353 million.
Q3 2020 Highlights CASINOS
After the openings in Spain during Q2, the Casinos division gradually recommenced its activity between the end of August and September in the Dominican Republic and incipiently in Colombia, recovering a good level of visits despite the significant restrictions on capacity and opening hours.
SLOT MACHINES
Although with restrictions, the reopening of the hospitality establishments during the second quarter and the successful implementation of all the scheduled reactivation plans allowed for a remarkable recovery in results for the Slot Machines division during the July-September period, partially supported by the latest slots machine models launched by UNIDESA (Manhattan and Oro del Faraón), which became the best performers in the market.
ITALY
In Italy, activity was completely restarted at the beginning of July, allowing for the gradual recovery of activity levels in both AWP machines and in the models of video-lottery (VLT) and game halls.
BINGO HALLS
The Bingo Halls division kept all its halls open during the third quarter under significant time restrictions, thus managing to increase the level of activity and the number of visits per month, thanks to the trust conveyed by the “Play Safe” Plan on health and safety measures for employees and clients. The improvement in forecast results was also related to the loyalty-gaining actions implemented since the reopening.
MEXICO
In the third quarter, Mexico continued to incorporate new reopenings after the first ones began at the end of the second quarter. Some of the halls received a visit from the municipal and national authorities, who praised the comprehensive health and safety measures plan for clients and employees, as well as those related to the facilities themselves. The restrictions imposed in Mexico, on time as well as on capacity and services, were the strictest of all the markets.
B2B – UNIDESA
The activity in the Industrial department returned to a certain level of normality by increasing commercial activity both in the sale of machines of the Manhattan and Oro del Faraón models, as well as in the installation of hall management systems in Spain (Forward Systems), which continue to strengthen. Also, in the arcades sector, the commercial launch of Storm Cash – the new direct gambling product by UNIDESA – stood out with excellent customer reception.
ARCADES
In July, the division was able to reopen all arcades in Spain, with the health and safety measures contemplated in the “Play Safe” Plan, obtaining large acceptance from both clients and official bodies, which highlighted the diversity and effectiveness of the measures implemented. These measures, along with commercial actions put in place during this quarter, were key to achieving the return of clients despite the various time restrictions applied in each region.
SPORTIUM
The Sportium retail business was fully operational during Q3. In addition, the recommencement of the most important sporting competitions catalysed users and sales. Additionally, the online business (the only one that remained operational during lockdown) also benefitted from the reactivation of the sports calendar. As a whole, activity levels approached those at the beginning of the year.
