CIRSA has reported €81.1 million in operating profit in the second quarter of 2021

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.