Cirsa reports rise in operating profit amid IPO rumours

It’s been reported that the Spanish group will soon be listed publicly.

Spain.- Blackstone-owned Cirsa has reported an operating profit of €164m for Q1, a rise of 8.6 per cent year-on-year. The results come amid speculation that Blackstone will launch an IPO imminently. Reports suggest that the firm has contracted Barclays, Morgan Stanley and Deutsche Bank to prepare the ground for a public listing.

Cirsa has not confirmed or denied the rumours, but it could be a good time to divest amid regulatory changes in South American markets. According to Spain’s Economía Digital, the public offering would value the betting brand at €5bn. That would be a notable premium for Blackstone, which bought Cirsa for €2bn from founder Manuel Lao Hernandez back in 2018. The asset manager has taken the company through years of refinancing its long-term debt.

Cirsa has a network of gambling machines at leisure and hospitality venues in Spain, along with 40 bingo halls, six casinos and 237 arcades. But most of its value is in Latin America. Last year, it bought Mexico’s GanaBet.mx for €20m as part of plans to expand its sportsbook operations internationally. The deal saw Cirsa expand to three main sportsbook brands with GanaBet.mx joining its existing brands Sportium in Spain and EPlay24 in Italy. Cirsa also operates Casino de Tanger in Morocco

Commenting on its Q1 results, Cirsa said: “The results confirm the solid growth trend of the company’s business thanks to its strategy of focusing on key markets and continuously improving the offer and quality of service.”