CIRSA beats expectations as business returns to operating profits  

By | February 24, 2022

Grupo CIRSA has praised the ‘robustness of its global operations’ as the Blackstone-owned Spanish gambling business delivered full-year financial results above market expectations.

Publishing its Q4 and full-year 2021 results, CIRSA registered group revenues of €1.11 billion, up 30% on corresponding FY2020 results of €843 million.

Improved revenue results were maintained despite continued COVID-19 restrictions impacting operations across Spanish provinces and its LatAm portfolio of Peru, Panama, Mexico and Colombia.

Of significance, CIRSA outlined that during Q4 trading business had returned to its ‘pre-pandemic’ form, with a strong end of year delivering EBITDA results of €121 million – above the stipulated Q4 Omicron target of €112 million.

Underlining the theme of recovery, the group noted significant improvements in its cost structure and the reduction of long-term debt payments, helping it secure €50-to-€55 million in annual EBITDA cost savings.

Lower operating expenses and improved all-round LatAm currency exchange results helped the group post an FY2021 EBIT operating profit of €25 million, reversing the FY2020 loss of €210 million.

As a result of its operating improvements, CIRSA was able to reduce its group-wide net losses in FY2021 to €150 million, a reduction of 40% on FY2020 COVID-afflicted results of €254 million.

Returning its units back to pre-pandemic performance, CIRSA added €53 million in cash flow earnings during Q4 trading , increasing its corporate balance sheet to €280 million.   

The group told investors:  “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 in 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.”

 

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