Spain’s Cirsa posted quarterly highs in both revenue and EBITDA in the three months to 31 March, powered by geographical diversification and significant growth in its online betting units.
Cirsa announced its Q1 results yesterday, displaying net operating revenue of €576.7 million ($164.5 million), a 12.5% increase when compared to the same quarter last year.
Cirsa’s EBITDA also hit €179.8 million, a 9.1% rise from Q1 2024, with the company attributing this increase to successful execution of its strategic plans across multiple operating markets.
Cirsa’s growth was particularly evident in its online gaming and sports betting division, where net revenue rocketed by 54.8% year-on-year to €131.1 million, an increase of €46.4 million.
The segment is Cirsa’s fastest-growing, and now accounts for 22.7% of total group net revenue, up from 16.5% in Q1 2024.
Apuesta Total and CasinoPortugal deals expand Cirsa’s horizons
The company said this was driven by full consolidation of two deals, having acquired a 70% stake in Peruvian operator Apuesta Total in July last year, before also entering Portugal after securing a 68% stake in CasinoPortugal.
In terms of EBITDA mix, Spain continues to be Cirsa’s dominant market, accounting for nearly half (49.3%) of its EBITDA total, a 0.6% rise. Second-placed Panama dropped from 13% to 11.8%, but Colombia (9.9%), Italy (8.8%) and the Dominican Republic (3.9%) all increased their share.
Cirsa’s geographical diversification strategy allowed it to offset negative effects from foreign exchange developments.
Total cash availability as of 31 March stood at €567.6 million, up from €549.8 million at the end of 2024.
Mixed results for Cirsa’s casino segment in Q1
Cirsa initiated over 15 renovations and expansions in its casino estate during Q1, with the company demonstrating its dedication to improving the experience for its customers.
The casino segment edged up its net revenue by 0.6% to €238.7 million, despite headwinds of economic slowdown in Mexico and Panama, caused by uncertainty generated by ongoing US government policies.
The casino division’s EBITDA dropped slightly, from €97.3 million in Q1 2024 to €95.5 million in the first quarter of this year.
Cirsa says it will continue to deploy CRM strategies in order to boost the number of visits to its casinos.
Slot growth in Spain and Italy
Cirsa was particularly enthused by the growth in its Spanish slots segment. The operator described increases in net revenue (8.3%) to €108.2 million and EBITDA (17.8%) to €54.5 million as “outstanding”.
The company primarily attributed this growth to the increased net revenue per slot machines, with the number of slot machines slightly growing.
“Our strategy to optimise the pool of slots continues to yield excellent results in terms of increased revenue per slot,” Cirsa explained.
Cirsa’s B2B division continues to lead the Spanish market, and the company is looking to capitalise with new game launches.
The business’ slots division is also performing well in nearby Italy, with net revenue up €5.3 million to €103.4 million in Q1, while EBITDA also increased to €8.2 million from the €7.6 million reported in the same quarter last year.
The acquisition of Italian operator Royal contributed to this growth, helping Cirsa to navigate the country’s “complex general market environment”.
Cirsa on course to meet 2025 guidance, IPO still an option
Cirsa stated its geographical diversification has set the company up to meet its 2025 guidance.
The company expects to post overall net revenue growth in the high single digits, with its land-based segment reaching mid-single digit growth and its online business hitting growth of low to mid-20s.
Last year, it was reported Blackstone-owned Cirsa would undergo an IPO in 2025, and in this remains part of its plans, the operator said. However the timing is unclear. In February Reuters suggested the IPO would take place in the second quarter, in April, but that date came and went with no development.
“Its execution and more specifically potential dates will depend on market conditions to ensure an optimal valuation of the company,” Cirsa said.
Original article: https://igamingbusiness.com/finance/cirsa-peru-portugal-integrations-record-q1-revenue/
