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Posted on: May 25, 2023, 08:01h.
Last updated on: May 25, 2023, 09:31h.
Spain-based gaming and hospitality company Cirsa is growing stronger. Its recent expansion plans are paying off, as the latest financial data from the company shows continued improvement in its financial health.
Cirsa registered an operating profit of €151 million (US$162.03 million) in the first quarter of 2023, which represents an increase of 27.9% compared to the first quarter of last year. The Blackstone-owned company closed the quarter with an operating income of €428.5 million (US$460 million), a year-on-year improvement of 29.2%.
The company explained in its financial update that these results confirm the full recovery of pre-COVID-19 activity levels in all the markets where it operates. They also support its ongoing expansion plans, which have seen it purchase assets in Mexico, Italy, and Morocco.
Casinos Bounce Back
Cirsa’s casinos and gaming hall operations have seen improvement in all the geographical areas where the company operates. In support of its slots division, Cirsa has narrowed its focus to those areas that have the potential to offer the highest penetration, which appears to have paid off.
On the other hand, activity in the industrial area continues at a good pace thanks to the performance of product launches. Cirsa recently rolled out the new Manhattan model slot machines to its Unidesa brand.
For the online gaming and sports betting division, Cirsa exceeded the expectations of its operating plan, with growth in both revenue and market share in all channels and markets. The division continues to strengthen its multichannel strategy, as well as the management of customer intelligence.
Also during this period, Cirsa began the rollout of branding opportunities with English Premier League soccer team Manchester City began as part of a sponsorship agreement with the club. That deal, made with the company’s Sportium sportsbook brand is helping Cirsa gain ground in the sports betting sector.
Cirsa also highlighted the positive impact it saw from the recurring organic revenue in its Italian operations compared to 2022. This is due, in part, to the different improvement actions implemented during the previous year in the company’s innovation and commercial efforts.
Likewise, the company added a new casino in Tuxtla, Mexico, during the first quarter of 2023. This followed the acquisitions of E-Play24 and Go Goal, two online gaming platforms in Italy, as well as a casino in Tangier, Morocco, announced late in 2022.
Sustainable Commitment
Cirsa also published its ESG (environmental, social, and governance) 2022 report. In it, the company reasserts its commitment to grow its business in a responsible and sustainable manner, detailing the strategic lines of action in terms of environmental sustainability, social responsibility, and governance for the future.
Joaquim Agut, the executive chairman of Cirsa Group, included remarks about the company’s performance and ESG plans, highlighting the “solid performance” it experienced across all divisions. He added that ongoing global economic and geopolitical concerns won’t alter Cirsa’s commitment to its business strategy or the ESG principles that are “most relevant” to the gaming industry.
To highlight that commitment, Cirsa has established a dedicated ESG Committee that reports directly to Agut. The group holds quarterly meetings to discuss its progress and plans and, as Agut explained, certain variable remuneration programs for company leaders are contingent on meeting ESG targets.
Cirsa recently joined the United Nations Global Compact, a program described as “the world’s largest corporate sustainability initiative.” The company joins Betsson, Australia’s Star Entertainment Group, and others that are part of the program.
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