CIRSA profit soars following Q2 revenue growth

13th September 2012 9:41 am GMT

Spanish gaming operator CIRSA has reported an 8 per cent increase in net operating revenues to €335.3m for the second quarter of 2012, following a solid performance from the company’s operations in Latin America, as well as a recovery from its results in Spain.

Net operating revenues from CIRSA’s slots business increased by 5 per cent to €124.4m despite a decrease in slot machines in operation in Spain. The company said that it will continue with its strategy of “highly selective acquisitions” and the discontinuation of underperforming sites to increase the quality of its slot operations portfolio.

In Italy, CIRSA has now rolled out approximately 2,150 VLTs which are performing as expected. The company plans to complete the deployment of all 2,583 VLTs this year, provided the Italian authorities can complete the issuance of all necessary authorisations.

Q2 Net Operating Revenues

Euros (€)Q2 2011Q2 2012

Net operating revenues from CIRSA’s casinos division increased 15 per cent to €138.4m, on the back of operating efficiencies and the installation of additional slot machines in its halls in Panama and Columbia, as well as the incorporation of results from its 33 per cent share in one hall in Argentina (acquired in October of last year).

During the quarter, CIRSA acquired a 20 per cent stake in two bingo halls in Argentina for a total consideration of €9.3m, with a call option to acquire an additional 13 per cent share for approximately €4.7m.

Bingo net operating revenues rose 0.2 per cent to €56.9m despite the closure of seven underperforming halls in Spain during the last year, while the company’s B2B division saw net operating revenues fall 5 per cent to €31.2m.

Overall, consumption expenses fell 15 per cent to €18.6m, while personnel expenses increased 12 per cent to €62.2m. Gaming taxes were up 10 per cent to €109.4m. External supplies and services incurred expenses of €64.5m, up 4 per cent year-on-year.

CIRSA recorded an EBIT of €44.2m, an increase of 8 per cent compared to the same period last year, with net profit for the year soaring 88 per cent to €11.2m.

Q2 Results

Euros (€)Q2 2011Q2 2012
Operating Revenues419.0m439.9m
Net Operating Revenues310.2m335.3m
Gaming Taxes99.2m109.5m
External Supplies and Services62.0m64.5m
Net Profit6.0m11.2m

For the six month period, total net operating revenues increased by 7 per cent to €665.1m, with a net profit for the period of €17.8m compared to a net loss of €9.1m last year.

As at June 30th the company had cash of €62.9m compared to €60.2m a year ago, with a total net debt of €887.9m.

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