Grupo CIRSA reports better than expected results

CIRSA has reported its full-year results for 2021.
CIRSA has reported its full-year results for 2021.

The Spanish gambling operator’s revenue rose 30 per cent year-on-year.

Spain.- Grupo CIRSA, the Spanish gambling operator owned by the US private equity group Blackstone, has reported stronger than expected full-year revenue of €1.11bn, an increase of 30 per cent year-on-year.

The improvement comes despite the impact of the Covid-19 pandemic on operations in both Spain and Latin America in 2021. The group highlighted strong Q4 trading at pre-pandemic levels, with Q4 EBITDA coming in at €121m compared to a target of €112m.

It noted that it had achieved improvements in cost structure and long-term debt payments, resulting in between €50m and €55m in annual EBITDA cost savings.

A reduction in operating expenses plus currency factors in Latin America led to a full-year EBIT operating profit of €25m, compared to 2020’s €210m loss. Net losses were reduced by 40 per cent to €150m from those reported in 2020.

CIRSA said: “We are targeting total recovery of 2019 PF EBITDA run rate during 2022. As explained in previous presentations, the timing in which the full recovery of EBITDA will occur depends on the moment at which Covid-related restrictions cease to affect our operation.

“More precise EBITDA guidance for FY 2022 will be provided in our investors’ presentation in June as in previous years.”

Last September, CIRSA agreed a €615m debt-bond placement, refinancing debt arrangements to help improve financial liquidity. The board agreed a placement with a 4.5 per cent interest rate to mature from 2027. 

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