14/10/2010
CIRSA Casino de Valencia: a benchmark in Europe

Valencia, Oct 14 (EFE) .- The vice president of gaming and entertainment group Cirsa, Manel Lao Gorina, said today that the casino that opened in Valencia company has become "one of the signs of the city" and has predicted that soon will be consolidated as "a benchmark in Europe."

 

This vice president has expressed Cirsa, Manel Lao Gorina, during the official presentation of the new casino of this company in Valencia, which was attended by representatives from business and political class in Valencia.

 

At the opening of casinos complex, which opened last August, the vice president of Cirsa has ensured that the casino has the machine park "more modern Spain, comparable to any casino in Las Vegas."

 

Although the Casino began operations two months ago in the city, today has made this debut after a shooting in which its facilities have received nearly 50,000 visitors.

 

These figures are "above the expectations of the company" and show "tourism potential" of an establishment called "boost the leisure offer in Valencia" with its 8,000 square meters of facilities that operate 17 hours a day, indicating Cirsa sources.

 

Lao Gorina highlighted Cirsa collaboration with the Administration and the City of Valencia Valencia "in these difficult times of economic crisis."

 

In his opinion, local and regional governments "have understood that the casino will be an important contribution to the growth of the city and all of Valencia."

 

Since its opening, has organized international poker tournaments have attracted players from 98 countries, accounting for 35 percent of visitors to the Casino.

 

From now on, every year Cirsa planned to be between ten and twelve national and international tournaments of poker, that will generate "a significant economic benefit" for related businesses such as hotels, taxis, restaurants and entertainment venues.

 

According to company estimates, nearly 2,000 players come out of town tournaments each year, with an average of three days in the city and a minimum expenditure of 300 euros per person per day.

 

The contribution of casino poker in sectors such as hospitality, transportation or hospitality "environment is estimated at 2 million euros during the first year," stated the manager of Cirsa Casinos in Valencia, Antonio Maeso.

Spain
casinos
16/10/2010
Official opening of the Casino Cirsa Valencia
A thousand people representing industry, transportation, distribution, fashion and tourism participated at the official opening of the new Casino Cirsa Valencia. The largest project terrassense company in Spain during 2010 experienced a dramatic coming-out in which he quoted the chief representatives of the Valencian community. Manuel Hernandez and Manuel Lao Lao Gorina, president and vice president respectively of CIRSA participated at the official opening.


The premiere institution has been two months after the casino opened its doors. It was an intense period of filming in the Casino CIRSA Valencia has received over fifty thousand visitors. No doubt a success. This exceeds their own expectations set by the company and demonstrates egarense tourism potential of the casino, a facility that aims to boost the tourism and leisure in the Levantine capital, thanks to a landmark project that occupies eight thousand square meters and operates for sixteen hours a day.


Together with the heads of CIRSA also participated in the inauguration Losé Escrig Miguel, Secretary of Economy, Finance and Employment. Just Escrig was responsible for throwing the first pitch at the wheel in this event.


During his speech, Manel Lao Gorina, VP of CIRSA, highlighted the efforts made by the company to boost the tourism in Valencia, adding to the city to take the international route of poker. Precisely this game is a major gamble for CIRSA this casino.


Manel Lao encrypted in two thousand the number of poker players who each year visit Valencia just to participate in these tournaments.


In parallel, the vice president said CIRSA economic investment has meant a commitment to Valencia, estimated at about fifteen million. He also highlighted the momentum that this casino has generated in terms of job creation and increased consumption in this city. The new casino is perched on one of the areas of greatest projection of the city of Valencia: the burgeoning of the Valencian Parliament Avenue, opposite the Palace of Congresses of Norman Foster, five minutes from Valencia Airport and Feria de Valencia, with five hotels and 1500 beds in their immediate environment.


The building, designed by Valencian architect José María Lozano, has been built with the aim of becoming an architectural landmark of the city, which also meets the strictest environmental criteria. Energy saving and bioclimatización have been the main guidelines for a fully sustainable building in both its conception and in its maintenance.
Spain
casinos
05/11/2010
Michel Sportium tab and appears in Aragon

Sportium, the home of sports betting and Ladbrokes face of CIRSA has hired former player Michel, Getafe coach, legendary member of the Quinta del Vulture Real Madrid and the Spanish team.


Michel will be the star of the communication campaign for the entire 2010-2011 season. In addition, last October 20 was held in Zaragoza Sportium presenting an act directed at the main operators in Aragon, as well as Administration officials, state.


The company will open its first local as soon as you give the green light to the new rules of betting, currently in the process of being approved.

Spain
sports betting
13/01/2011
CIRSA complete a bond issue of € 280 million maturing in May 2018 and 8.65% rate

The strong demand for bonds CIRSA allowed the company to make the placement of new bonds at a price higher than the nominal (100.50%).


CIRSA will use the proceeds from this issuance to pay in advance short-term borrowings mainly € 230 million bonds due 2012.


Deutsche Bank was the entity responsible for directing the operation.


CIRSA, a leader in the field of play, leisure and entertainment, has successfully completed six bond issues on international markets since 2004.


Cirsa now, with this issue, has outstanding bonds totaling € 680 million due 2018.


The operation, led by Deutsche Bank, has enjoyed the full confidence of the financial community and has been widely endorsed, thanks to demand from Europe and America, both former bondholders as new investors.


Joaquim Agut, Director General of Cirsa, said: "the credibility generated in the debt market by the company, through its management team and backed by strict compliance with all its financial commitments over the last 17 quarters, has successfully facilitated this bond issue that allows the company to refinance until 2018. This has also been possible in a very complex economic environment and mainly affects, among others, to all of our long-term refinancing país.Esta management team will continue to focus on implementing their plans and in compliance their goals. "


The success of this issue is part of the strategy of CIRSA to strengthen its financial structure.


For more information:

Deutsche Bank
Myriam Gomez / Sofia Labastida
Phone: +34 91 335 58 80 / +34 91 335 56 54
E-mail: @ db.com myriam.gomez / sofia.labastida @ db.com

Press Office
Abbey Mage / Worthy Pastor
Phone: +34 91 577 92 72
E-mail: @ cic-rp.com mage.abadia / digno.pastor @ cic-rp.com


About Deutsche Bank:


Deutsche Bank is a leading global investment bank which has an established and profitable private client business. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With 82,504 employees in 72 countries, Deutsche Bank provides financial services worldwide. The bank competes to be a leading global provider of financial solutions for its clients, creating exceptional value for shareholders.

www.db.com www.db.com / spain


About Cirsa


CIRSA Gaming Corporation is a world leader in gaming activity and leisure. Had revenues in 2009 of 1648 M €. Part of Nortia Corporation and has 34 casinos, 83 online casinos, 62,000 slot machines, 90 bingo rooms, 190 gaming halls, sports betting 102 points and 926 video lottery terminals.

Spain
corporate
06/04/2011
CIRSA sees operating profit grow by 25% to reach 260 million euros for 2010


Cirsa Gaming Corporation, a leading multinational company in the gaming and leisure sector and the largest in Spain, had an operating income of 1,774 million Euros in 2010, up 8% on 2009, their operating profit grew by 25% over the same year to reach 260 million Euros.

Despite the complexity of the current economic environment, especially in the Spanish market, Cirsa has met its operational targets and has once again exceeded the estimated earnings figures communicated to the market.

These results confirm the effectiveness of the group’s policy of prioritizing efficiency and productivity and also reinforce the positive evolution of the investments we have made. All of which has helped the group to exceed the market expectations.

 


The most notable aspects concerning the various business units are as follows:

 

• CASINOS DIVISION

Argentina, Colombia and Panama have contributed significantly to the excellent results posted by this Division.

In Argentina, the refurbishments and expansion of the products available on the Buenos Aires Boats and the favourable evolution of business at the Rosario Casino have been decisive. All key business indicators have shown significant improvement.

The merger of Winner and Unidelca in Colombia has created significant synergies and has also made Cirsa the largest operator in the country.

In Panama, the relocation of rooms to areas with higher traffic and potential, the expansion of the park of machines, the new room in Los Andes and the roll-out of the TITO system (ticket in-ticket out) have all increased earnings and market share so consolidating our leading position in the country.

In Spain, the weakness of the market has been counter-balanced by a strict policy of cost constraints and the favourable evolution of the new Valencia Casino which opened its doors during the second half of the year.

 

• B2B DIVISION
 
The success of the various models launched on the market during 2010 have confirmed the undeniable leadership of this division in the sale of recreational machines to the Spanish hotelier sector.

 

• SLOTS DIVISION

As with the other Spanish divisions, takings have seen a drop compared to the previous year. Although this has been compensated for by improved margins thanks to better management of the park of machines, heavy cost constraints and an ambitious rollout plan.
 
In Italy, the improved results were mainly due to higher earnings growth driven by product improvements and more efficient point-of-sale management.

Still in Italy, the new video lottery business was launched during the last quarter of 2009 which this year will reach a total of 2,583 units awarded by concession.

 

• BINGO DIVISION 

In Spain, the Bingo Division has posted better results than the previous year. Said improvements were due to more efficient general management practices and the introduction of special electronic bingo machines in some halls.

Italy saw a substantial improvement in results driven by changes to the legislation surrounding prize percentages, which went from 58% to 70%. This had positive repercussions on visitor numbers and improved margins and earnings.

Mexico had an excellent year based on two key factors: the construction of larger halls, greatly improving the leisure products on offer, and the introduction of casino machines after the legislative changes which made this possible.

 

• BETTING

Sportium has consolidated itself as the leading chain of sports betting establishments in Madrid reaching 110 points-of-sale in 2010, a million bets are placed each month by the 25,000 customers arriving every week.

 

The highlights of 2010

 
• The expansion of the products on offer on the Buenos Aires boats, including a new 2,300 m2 reception building which includes a wide range of shops and restaurants.

• The favourable evolution of the 130,000 m2 Rosario leisure complex housing the largest casino in Latin America with 2,000 gaming machines, 80 traditional casino tables and 300 bingo seats.

• The introduction of Video Lottery Terminals (VLT) in Italy which includes a park of 2,583 machines authorised during the recent concession.

• The inauguration of the 4,000 m2 Valencia Casino housing 22 gaming tables, 135 gaming machines, a Poker room, café, restaurant and a spectacular floating stage which is the centre attraction the 2 main floors of the casino are based around.

• In Colombia, the merger of Winner (Cirsa’s main company in the country) and Unidelca, the owner of 49 gaming halls, has given the company 70 halls distributed throughout the country and consolidating its position as the leading national operator.

• The Bingo Arizona was launched in Bilbao. This is a new concept in urban leisure which combines high-class gastronomy with a wide range of leisure entertainment including: recreational machines with prizes, sports betting, bingo, live music, after-work sessions with DJs and excellent restaurant and cocktail facilities.

 


In a difficult and complex economic environment, which has been aggravated by the smoking ban legislation coming into force in Spain in January of 2011, the Cirsa Group will continue with its strategy of consolidating and improving the profitability of its current businesses in the areas in which it operates using efficiency and productivity programmes that will be combined with an investment strategy which is well-thought out and implemented with utmost care.

 

In the judgement of Cirsa’s CEO Joaquim Agut “the posting of such positive results in a complex economic environment such as this is down to the systematic execution of our strategy and a highly motivated team which is committed to achieving its goals. Their achievements have once again exceeded the expectations of the markets”.

 


Cirsa Gaming is one of the world leaders in gaming and leisure, with 32 traditional casinos, 83 electronic casinos, 33,000 recreational machines, 88 bingo halls, 140 gaming halls, 110 sports betting centres and 993 video lottery terminals in Spain, Italy and Latin America.


For more information:

Pablo Llorens Sunyer
Corporate Director for Image and Communications
CIRSA Gaming Corporation
Tel: +34 93 739 6828 - +34 93 739 6700
pllorenss@cirsa.com

 

Spain
corporate
25/05/2011
Another favourable quarter for CIRSA


• The operating profit for the first quarter came in at 70 million Euros, 21% higher than the same period last year.

• Favourable results from activities in Italy and Latin America and the group’s ongoing efficiency and productivity policy have made up for weakness in the Spanish market, aggravated by the smoking ban legislation which has negatively affected all businesses.

• Cirsa has hit its targets for 21 consecutive quarters.

 


CIRSA Gaming Corporation is a leading leisure and gaming company and the largest Spanish company in the sector; during the first quarter of this year, they obtained an operating profit of €70 million, 21% higher than the same period last year, operating income came in at €438 million, 7% higher than the first quarter of 2010.


The most significant aspects for the period were as follows:

 

All the Spanish business divisions have activated alternative plans in case the situation in this country becomes even more complicated as a consequence of the crisis and the smoking ban legislation. The situation has partly been mitigated by the positive reception of new models of recreational machines in hostelry establishments.


In the sports betting sector, Sportium now operates 118 points of sale in the community of Madrid and has begun its roll-out in Aragón with 21 points of sale. It is currently the only company with a licence to operate in the region.


In Italy, excellent results were mainly due to takings from new recreational machines and the progressive acceptance of Video Lottery Terminals (VLT). This combined with bingo activities which have consolidated their positive evolution thanks to a change in legislation providing for a higher percentage of prize money and more favourable tax legislation.


In Latin America, the casinos division continues to grow thanks to the driving force of the economy in the countries of that continent and the success of investments made there, particularly in Argentina, Colombia and Panama.


Mexico has consolidated its profitability with the expansion of the park of machines in existing halls, as well as larger halls and the selective opening of new halls using a multi-offering business model.


Despite the deterioration of the gaming sector in Spain, Cirsa is confident that it will hit its targets during the second quarter thanks to the commitment, efficiency and responsibility of the whole team.


Cirsa Gaming is one of the world leaders in gaming and leisure, with 32 traditional casinos, 83 electronic casinos, 32,500 recreational machines, 88 bingo halls, 140 gaming halls, 139 sports betting centres and 2,583 video lottery terminals in Spain, Italy and Latin America.

Spain
corporate
08/09/2011
CIRSA, with an operating profit of 141 million euros in the first half

In the first half of this year, CIRSA, a leading gaming and entertainment company and the first Spanish company in the sector, achieved an operating profit of 141.2 million euros, up 14% over the first half of 2010. Revenues stood at 857 million euros.


In the second quarter, with a turnover of 419 million euros, operating profit reached 71.5 million euros, up 8% from that recorded in the same period last year.


The good performance of activities in Latin America and Italy and the rigor in the implementation and monitoring of operational plans and especially efficiency in the Spanish market, given the current situation and the Anti-Tobacco Law, have allowed Cirsa to achieve these positive results. For 22 consecutive quarters, CIRSA has fulfilled its commitments with the markets.


The most noteworthy aspects of the period are the following:


• The successful execution of product strategy made by the B2B division has made available a wide and innovative range of machines and kits of new games in Spain, a determining factor in consolidating its leadership in the hotelier channel, which translated into a market share above 55% at the end of the first half.


• Argentina, Colombia and Panama continue to lead the growth of the casino division in Latin America. The economic situation, the good performance of the investments made and an increasingly customised offer, tailored to different market segments, are the determining factors in obtaining excellent results in these countries.

• In Italy, the revenue increase derived from the implementation of the VLT (video lotteries), which started at the beginning of this year, in gaming and bingo halls is being decisive in achieving good results.

• Mexico maintains its upward trend, mainly due to the increase in the number of machines and the product mix management; this has meant an increase in visitors and, consequently, revenues.

• Sportium is consolidating and extending its leadership position in line with new regulations approved in the Autonomous Communities.  It currently has 120 sale outlets in the Autonomous Community of Madrid and 50 in Aragon.

• Sportium covers more than 70 different sports and offers 60,000 betting options a week.


Despite the macroeconomic situation in Spain and its prospects in the short term, Cirsa is confident it will achieve its business objectives for the second half, as a result of the implementation of operational plans in Spain, the evolution of the Latin American economy and the development of activity in Italy.

Cirsa Gaming Corporation is a world leader in the leisure and gaming industry, and the top Spanish company in the sector. The company had an operating income of 1,774 million euros in 2010. It has 32 traditional casinos, 83 electronic casinos, 32,500 recreational machines, 88 bingo halls, 140 gaming halls, 139 sports betting centres, 1,250 lottery terminals and 2,583 video lottery terminals in Spain, Italy and Latin America.

 

For more information:
Pablo Llorens Sunyer
Corporate Director for Image and Communications
CIRSA Gaming Corporation
Tel: +34 93 739 6828 - +34 93 739 6700
pllorenss@cirsa.com

Spain
corporate
23/11/2011
Third Quarter 2011 Results
CIRSA’S OPERATING PROFIT REACHES € 215 MILLION IN THE FIRST NINE MONTHS OF THE YEAR


CIRSA, a leading multinational company in the gaming and leisure sector and the largest in Spain, obtained an operating profit of € 215 million in the first nine months of this year; its operating profit grew by 11% compared to same period last year. Operating income stood at € 1,287 million, similar to the same period last year. 

In the third quarter, CIRSA’s operating profit reached € 74 million, a 5.3% increase compared to the same quarter of 2010. The company’s turnover for this quarter reached € 429 million, similar to the same quarter last year.

The favourable evolution of Latin American economies and our activities in the region, the good performance of investments and the implementation of efficiency plans in the Spanish market have enabled the Group to achieve these favourable results. For 23 consecutive quarters, CIRSA has fulfilled its commitments with the markets.
The milestones of this period have been the following:

The positive evolution of the Casinos Division continues, especially in countries with greater weight in the division: Argentina, Colombia and Panama. The main reasons that explain this positive evolution are: the success of the investments made, which include a new casino in Colombia, new halls and extensions in Panama and a significant increase in the park of machines in Argentina, together with a rigorous implementation of strict efficiency plans.

Also noteworthy are the good results of the tourist season in the Spanish casinos.

The wide and innovative range of the B2B division for the hotelier channel has allowed the company to maintain a market share above 55% in this period and further consolidate the leadership that it already holds in the Spanish market.

As regards the Operational Division in Spain, the remarkable renovation of machines, efficiency improvements in all processes and spending adjustment measures have helped to mitigate the market situation.

In the area of sports betting, Sportium (CIRSA’s brand in this business) is consolidating its leadership in the autonomous regions where the activity is regulated and has opened 190 outlets in Madrid and Aragon; it is the leading gaming operator in both regions.

In Italy, the positive development of revenue and results for the company continues helped by the successful implementation of VLT (video lottery) machines and the consolidation of traditional businesses of operating bingo halls and managing machines in hotels.

With these results as of September, despite the difficult situation in our country, CIRSA hopes to meet its operational plans by the end of this year and consolidate its leadership in Spain, Italy and Latin America.

CIRSA Gaming Corporation is a world leader in the leisure and gaming industry, and the top Spanish company in the sector. The company had an operating income of € 1,774 million in 2010. It has 32 traditional casinos, 83 electronic casinos, 32,500 recreational machines, 88 bingo halls, 140 gaming halls, 190 sports betting centres, 1,250 lottery terminals and 2,583 video lottery terminals in Spain, Italy and Latin America.


For more information:
Pablo Llorens Sunyer
Corporate Director for Image and Communications
CIRSA Gaming Corporation
Tel: +34 93 739 6828 - +34 93 739 6700
pllorenss@cirsa.com

Spain
Corporate
11/04/2012
CIRSA Annual Results 2011
CIRSA OPERATING PROFITS RISE BY +11.5% IN 2011 TO REACH 290 MILLION EUROS

 
Cirsa Gaming Corporation, a leading gaming and leisure multinational and the largest operator in the Spanish sector,recorded operating profits of 290 million Euros in 2011 for an increase of 11.5% over the previous year, operating income came in at 1,747 billion Euros.
 
Decisive factors in the positive results obtained included strong growth in activities in Latin-America and Italy, good investment performance and the efficiency plans implemented in the Spanish market.
 
The Company has consolidated its position as the leading Casino operator in Latin-America and established itself as the primary machine vendor to the hostelry sector with a 57% share of the national market.
 
Cirsa has hit its business targets for the last 24 quarters in a row.

 

HIGHLIGHTS FOR 2011:


- In January we executed a 280 million Euro bond issue securing the group's financing up to 2018.

- Two new casinos were inaugurated in Panama with 4,000 m² of floor area, 700 machines and three bingos.

- We acquired our first bingo hall in the Province of Buenos Aires with 580 machines and a capacity of 1,100 players.

- The Casino Cirsa Valencia consolidated its position as the third largest in Spain with 265,000 visitors per year.

- Sportium has become the indisputable sports betting leader in Madrid and has completed roll-out in Aragon bringing the total number of points of sale to almost 200.

- The B2B Division has consolidated its 57% leading market share in sales of hostelry machines in Spain.

- Roll-out of Video lottery terminals (VLT) in Italy has reached 1,700 machines, 65% of the park of 2,583 authorised through the concession.



The various business divisions performed as follows:


CASINOS DIVISION


Argentina, Colombia and Panama have contributed significantly to the excellent results posted by this Division.

We should note the excellent performance of investments made in the new Casino in Colombia as well as the new halls and expansion programmes in Panama, the significant increase in the number of machines in Argentina and the acquisition of a Bingo hall in the province of Buenos Aires.

In Spain, our Casinos performed well during the tourist season. Casino Cirsa Valencia has now consolidated its position as the third largest in Spain.


B2B DIVISION


Thanks to a range of innovative new products, the B2B Division achieved a record market share of 57% in the sale of recreational machines to the Spanish hostelry market despite the difficult environment, it has now consolidated its leading position.


SLOTS DIVISION


The Spanish Operations Division has compensated for the effects of the crisis and smoking laws by implementing efficiency programmes, swap-outs and product rotation and reigning in costs, this was helped by its position as leader and the innovative product range provided by the B2B Division.

The Italian VLT video lottery market saw the machine park rise to 1,700 in 2011, very positive results are due to a combination of the product experience and technological support from the B2B Division, as well as Cirsa’s knowledge of the Italian market. Cirsa has also maintained its strategic position in the AWP machine market.


BINGO DIVISION


The Bingo market was the most affected sector in this country. Given the adverse conditions, the actions implemented in terms of management, cost controls, optimisation and efficiency, together with the remodelling of facilities, smoker’s clubs, loyalty programmes and a variety of marketing campaigns have, on the one hand, contributed to mitigating the difficult market conditions and, on the other, allowed Cirsa to consolidate its position as the undisputed leader in the sector.
 
Gaming halls have maintained their earnings thanks to policies including cost reductions, park modifications and service optimisation, as well as the introduction of e-bingo in Andalusia and improved offerings in other regions.

Bingo halls in Italy have seen big benefits from the implementation of VLTs which have improved figures in terms of both net income and operating profits.

Mexico also reported positive results in 2011 thanks to the consolidation of the 20 halls we operate there, we also improved the range of leisure products on offer and adapted them to the demand profile of the country.

 

BETTING

 

Sportium has consolidated its position as the best-known and most popular sports betting brand. It has maintained an undisputed leading position in Madrid with 110 points of sale, this has now been added to with the roll-out of 64 points of sale in Aragon.

Although the economic environment is difficult and complex for 2012, the CIRSA Group will continue with its strategy of consolidation and improving profitability of businesses in the geographic areas it currently operates in: Spain,Italy and Latin-America; policies will include efficiency and productivity programmes combined with selective investment, all executed with the utmost rigour.

Cirsa Gaming Corporation is a world leader in the leisure and gaming industry, and the top Spanish company in the sector. It employs 16,000 people. It achieved an operating income of 1,747 billion Euros in 2011. Today it has 33 traditional casinos, 81 electronic casinos, 32,930 recreational machines, 81 bingo halls, 131 gaming halls, 174 sports betting outlets, 1,860 lottery terminals
and 2,583 video lottery terminals in Spain, Italy and Latin America.


For more information:

Pablo Llorens Sunyer

Corporate Director for Image and Communications

CIRSA Gaming Corporation

Tel: +34 93 739 6828 - +34 93 739 6700

pllorenss@cirsa.com

Spain
corporativo
23/05/2012
Cirsa continues to hit its targets and has improved results for 25 consecutive quarters
THE FIRST QUARTER SAW OPERATING PROFITS GROW BY 11% TO 77.4 MILLION EUROS
 

Cirsa Gaming Corporation, a leading gaming and leisure company and the largest in the Spanish sector, has released its results for the first quarter of this year; these show that the company has hit its profit targets for the twenty-fifth quarter in a row. 
CIRSA’S operating income came to 448 million Euros, a 2.1% increase over the same period last year with operating profits coming in at 77.4 million Euros for an 11% increase over the first quarter of 2011.


The highlights of the quarter included:

 
The Casino Division has maintained growth in Latin-America by leveraging favourable economic developments in Panama, Argentina and Colombia, where they expanded and improved their offering in 12 of the best Casinos in the Division. 

In Spain, the B2B Division achieved satisfactory results based on two determining factors: positive reactions to new products allowing us to maintain more than 50% of market share in hostelry machines and the productivity improvements we have implemented.

Despite the current situation in the Spanish market, the results for the Operational Division have progressed favourably, this was due to cost rationalisation as well as other management improvements which have been implemented.

The results for the Bingos Division improved slightly as a consequence of average ticket increases and the rationalisation and optimisation of all cost items.  

Mexico has seen increased income from bingo halls thanks to substantial improvements to the product mix and the commercial management of halls which mitigated the effects of the withdrawal of multi-player games due to regulatory changes. 

VLT machines continue to be rolled out in Italian gaming and bingo halls and the concession (2,583 machines) is now 80% covered, income has evolved positively thanks to an optimum selection of points of sale. The effects of the market situation on the hostelry channel have been mitigated thanks to newly-introduced commercial improvements and the capture of new points of sale.

Sportium has maintained its growth and leading position in the sports betting sector, both in the Community of Madrid with 125 points of sale and in Aragon with 65.

 
Joaquim Agut, Managing Director of Cirsa, said: “the achievement of hitting and even exceeding our market targets for 25 consecutive quarters in such a complex economic environment is undoubtedly due to the unconditional support of the owners, the commitment, dedication and motivation of the management team, and the optimum execution of our business strategy by all employees throughout the geographic regions in which we operate."
 

Despite the weakness of the national market, CIRSA is confident that these lines of action will enable them to hit their targets for the second quarter of the year, based on their efficiency and productivity policies and the rigorous implementation of their operational plans.
 

Cirsa Gaming Corporation is a world leader in the leisure and gaming industry, and the top Spanish company in the sector. It employs 16,000 people. It achieved an operating income of 1,747 billion Euros in 2011. Today it has 32 traditional casinos, 83 electronic casinos, 32,808 recreational machines, 79 bingo halls, 138 gaming halls, 190 sports betting outlets, 1,840 lottery terminals and 3,440 video lottery terminals in Spain, Italy and Latin America.

 
For more information: 

Pablo Llorens Sunyer 
Corporate Director for Image and Communications
CIRSA Gaming Corporation
Tel: +34 93 739 6828 - +34 93 739 6700
pllorenss@cirsa.com
 
Spain
Corporate
12/09/2012
CIRSA sees operating profits grow by 12%
CIRSA sees operating profits grow by 12% during the first half of 2012 and achieves its best ever results in the second quarterDuring the first half of the current year, CIRSA, a leading gaming and leisure company and the largest in the Spanish sector, achieved operating profits of 157.9 million Euros, 12% over the first half of 2011, operating income came in at 897.6 million Euros for an increase of 4.7% over the
same period of the previous year.

The second half, saw earnings reach 449.9 million Euros, 7.3% more than in the same period of 2011, we also achieved the highest ever operating profit in a single quarter with 80.6 million Euros, an increase of 12.7% over the second quarter of 2011.

Twenty-six consecutive quarters of growth have exceeded all market expectations and can be put down to the correct use of development
strategies for each geographic region, generally good business performance in Latin-America and the correct execution of a variety of actions and programmes, which have generated a substantial overall improvement in Spanish business activities, despite the current economic climate.

The most significant aspects to highlight in this period are:

The positive evolution of Casino division operations in Latin-America, which have included expansions to of our halls and the number of machines as well as the implementation of new customer service technologies at thirteen facilities.

In the Bingo Halls division, Spain has seen improved results in the Bingo sector thanks to a firm policy of cost reduction and control together with the implementation of new regulations by some regional administrations designed to compensate for the consequences of anti-smoking laws and the associated decrease in demand.

The Arcades sector has seen the introduction of new gaming facilities in Andalusia as well as continued growth of sports betting in this channel in the region of Madrid and Aragon.

The B2B Division has maintained a firm hold on its leading position in recreational machines for the Spanish hostelry market with 55% of the market share.

New machine roll-outs and strict cost controls have decisively halted the fall in demand suffered by the Spanish Slots division.

In Italy, Cirsa continued to see significant growth in income thanks to the progressive implementation of VLT (video lottery terminals), reaching 2,100 units out of 2,583 authorised in the concession.

In Mexico, ongoing improvements to the quality of service in halls, as well as optimization of the product mix has seen the number of visits increase leading to a rise in earnings.


Sportium, the Group’s main player in the live betting market, has consolidated its leading position in the region of Madrid and Aragon with market shares in excess of 55% of all business. Operations also commenced in Navarra and Valencia last June as new regulations came on line in these communities.


Sportium currently has 207 points of sale. In June, Cirsa became the first Spanish company to offer legal online gaming in our country, the Cirsa.es portal offers betting, casino games, poker and bingo.

Despite the current economic downturn in Spain and the outlook for the short and medium term, Cirsa was able to hit its business targets for the second half of the year thanks to the commitment and dedication of the whole team, the efficient implementation of operational plans in Spain, the favourable economic evolution of Latin-American markets and the growth in activities in Italy.

In the words of Joaquim Agut, Cirsa's CEO, "the efficient execution of operational plans by the entire team at Cirsa has reaffirmed that the
strategy of geographic and business diversification is still providing the results we expected, even in an environment as complex as the one we have now”.


Cirsa Gaming Corporation is a world leader in the leisure and gaming industry, and the top Spanish company in the sector. It employs 16,000 people. It achieved an operating income of 1,747 million Euros in 2011. Today it has 32 traditional casinos, 82 electronic casinos, 38,621 slot machines, 79 bingo halls, 114 gaming halls, 207 sports betting outlets, 1,980 lottery terminals and 2,786 video lottery terminals in Spain, Italy and Latin America.

For more information:
Pablo Llorens Sunyer
Corporate Director for Image and Communications
CIRSA Gaming Corporation
Tel: +34 93 739 6828 - +34 93 739 6700
pllorenss@cirsa.com
Spain
Corporate
18/09/2012
Exclusive Distribution Agreement for Spain between UNIDESA (CIRSA) and BALLY WULFF
Enrique Barba , Managing Director of UNIDESA (CIRSA Group) and Tim Wittenbecher, Managing Director of BALLY WULFF, have signed an agreement in order to join forces in the Spanish market by which  UNIDESA will distribute exclusively BALLY WULFF products.

UNIDESA, the industrial company of the B2B Division of  CIRSA, is the leader brand in the Spanish AWP market with  more than 50%   market share.

The new distribution agreement will not only secure BALLY WULF´s position in the Spanish market, it will also open both companies good future perspectives in the video and multigame segment, because of BALLY WULFFs extensive multigame experi-ence with a large games library and thousands of multigame ma-chines in its own German operation.

Due to UNIDESA´s  leadership position in the Spanish market and BALLY WULF ´s machines, maximum customer satisfaction will be achieved as they will enjoy a broad range of innovative games warranting top operating revenues.

UNIDESA´s deep knowhow of the Spanish market and BALLY´s experience in the competitive, completely multigame driven German market, could bring out great products in the future.

Additionally, UNIDESA will offer the after sales service for all  ex-isting BALLY WULFF´s machines, so that after the end of BALLY´s agreement with previous representative company, customers will enjoy again a professional service solving all their needs. 

BALLY WULFF –  a living Tradition meets modern Entertainment:
The BALLY WULFF Games & Entertainment GmbH is one of the leading German compa-nies in the electronic entertainment sector. It successfully combines development, production and distribution. Founded in 1950, the tradition-conscious company merged in 2007 with the Westfalian SCHMIDTGRUPPE.  Today, BALLY WULLFF’s infrastructure consists of 12 customer service centres and sales offices nationwide and approx. 250 employees. The sale of electronic entertainment and casino-style payout machines is focused on the German market as well as the export business, notably Spain. The prod-uct portfolio includes pool, snooker and billiard tables, and table football. Money safes, furniture for gaming arcades and sophisticated management software complete the company’s portfolio. By creating the MAGIC CASHPOT, BALLY WULFF has created an-other successful instrument to connect to gamers and clients.

The BALLY WULFF Entertainment GmbH (www.ballywulff.de) with registered offices in Berlin is one of the leading companies that develops, produces and distributes enter-tainment technology in Germany. The company consists of 12 customer service centres and sales offices with approx. 240 employees. Half of the staff is employed in develop-ment, production and administration in the Berlin location at the Neuköllner May-bachufer.

Contact Person
Bally Wulff Games & Entertainment GmbH
Press- & Public Service
Nina Ahrens
Maybachufer 48 – 51
12045 Berlin
Tel.: 030-62002-231
Fax: 030-62002-222
E-Mail: n.ahrens@bally-wulff.de
Internet: www.ballywulff.de


For more information:
Pablo Llorens Sunyer
Corporate Director for Image and Communications
CIRSA Gaming Corporation
Tel. +34 93 739 6828 - +34 93 739 6700
pllorenss@cirsa.com

Spain
Corporate
30/01/2013
CIRSA successfully completed a bond issue of € 100 million maturing
CIRSA successfully completed a bond issue of € 100 million maturing in May 2018 at a coupon rate of 8.75 %

CIRSA will use € 70 million of the proceeds of this issuance to cancel advance short-term financial debt and € 30 million to bring more liquidity to the company and make investments.

Deutsche Bank was the financial institution in charge of the operation.

Cirsa, a leading company in the gaming, leisure and entertainment sector, has successfully completed seven bond issues in the international markets since 2004. With this issue, Cirsa now has bonds in circulation amounting to a total value of € 780 million maturing in 2018.

This issue, which was handled by Deutsche Bank, has enjoyed the confidence of the financial community and has been largely over-subscribed by European and American investment funds.

The operation is part of  Cirsa’s strategy and will solidify its financial structure.

As of 30 September 2012, Cirsa recorded an operating profit of € 240 million, up 11.7 % compared to the same period last year.



For more information:
Pablo Llorens Sunyer
Corporate Director for Image and Communications
CIRSA Gaming Corporation
Tel: +34 93 739 68 28 - +34 93 739 67 00
pllorenss@cirsa.com

Spain
corporativo
08/04/2013
CIRSA Annual Results 2012
CIRSA SAW OPERATING PROFIT GROW BY +11 % TO REACH 322 MILLION EUROS FOR 2012

Cirsa Gaming Corporation, a leading gaming and entertainment multinational and the largest operator in the Spanish sector, recorded operating profits of 322 million euros in 2012 for an increase of 11% over the previous year. Operating income came in at 1,818 billion euros.

The favourable evolution of Latin American economies and the good performance of investments and the implementation of efficiency plans and cost reduction measures in the Spanish market have enabled the group to meet their operational programmes and commitments to capital markets.

The effective implementation of the company strategy have led the group to achieve, for the seventh consecutive year, results that are above market expectations, all in an environment characterised by worldwide crisis.


HIGHLIGHTS FOR 2012

- A new casino with 1,300 m² and 308 machines was opened in Tocumen (Panama).
- In Argentina, three halls in Mendoza and another in Rosario were expanded, with more than 400 machines in each province.
- The B2B Division has maintained a firm hold on its leading position in slot machines for the Spanish hostelry market with 55% of the market share.
- The launch of Wingo, Cirsa's electronic bingo, in the Community of Madrid represents a new concept in online gaming with more prizes and innovative media.
- Sportium, undisputed leader in live sports betting in Madrid and Aragon, begins its deployment in Valencia, with a total supply of 325 outlets in the three autonomous regions.
- CIRSA, using the cirsa.es web domain, became the first Spanish company to offer legal online gaming in our country, offering sports betting, casino games, poker and bingo.
- Roll-out of video lottery in Italy has reached 2,247 machines, 87% of the number of authorised machines.


The most notable aspects concerning the various business units are as follows:


Casino Division

Argentina, Colombia and Panama have contributed significantly to the favourable results posted by this division.

The efficient management of the business and the remodelling and selective expansion of the higher occupancy halls in Panama, Colombia, Argentina and the Dominican Republic should be noted.

The TITO system (payment collection through a ticketing system) at 19 casinos in the region has been implemented.

The productivity and efficiency measures introduced in casinos in Spain have served to mitigate the effects of the plight of demand due to the economic crisis and the smoking ban.


B2B DIVISION

With the focus on the market for machines for the hotel sector in Spain and the favourable reception of new products, Cirsa consolidates its leadership with a 55% market share, which has provided very satisfactory results with the implemented productivity improvements.

Slot Division

Falling demand in Spain was offset by strong containment, strict cost control and greater specialisation of the organisation, whose business area staff have attended a specific training programme.

Italy has led the deployment of the VLTs with 2,251 machines installed in arcades and bingo halls in 2012, which represents 87% of acquired rights. Cirsa has established itself as the best operator in terms of gross revenue.

Regarding AWP machines, despite the crisis that has hit the sector in Italy, Cirsa remains as the main operator in the country.


Bingo Division

The fiscal enhancements introduced in seven of the nine autonomous regions where Cirsa is present have significantly contributed to the improvement of the activity.

The launch of Wingo, Cirsa electronic bingo, in the Community of Madrid, with innovative media and more prizes and the new games introduced in Catalonia, have provided a significant increase in the results of the division and in market share, which establishes Cirsa as the Spanish market leader.

Regarding arcades, the consolidation and growth of a new gaming supply in Andalusia and the continued rise of sports betting in Madrid and Aragon have improved results in this area.

The measures adopted in Italy to refurbish halls and improve the quality of service in bingo halls, along with various promotional activities, have mitigated the indiscriminate rise in taxes introduced by the Italian government and the widespread crisis that has severely affected the bingo sector in this country.

In Mexico, operating profit was significantly increased, thanks to good management of revenue and costs.

Live betting

Sportium, the group’s main player in the sports betting market, is consolidating and expanding its leadership position. In Madrid and Aragon, it has achieved a market share of over 55% of total turnover and, in Valencia, where it began operating in June, it already has 75 outlets and 125 terminals in hotels.

Online betting

After online gambling licenses were authorised in June 2012, the digital division began operating under the brand Cirsa.es, becoming the first Spanish operator in sports betting, bingo, casino and poker. Acquisition and retention of customers, especially in sports betting and casino games continues at a fast pace.

According to Joaquim Agut, Director General of Cirsa, "once again the consistent implementation of our strategy, the capacity of our management and the involvement of all staff of the company to achieve the established targets, even in the current economic environment, has brought a significant improvement in results over the previous year."

Although the economic conditions in 2013 are difficult and complex, the Cirsa Group will continue with its strategy of consolidation and improving profitability of businesses in the geographic areas it currently operates in: Spain, Italy and Latin-America, implementing policies which will include efficiency and productivity programmes combined with selective investment, all executed with the utmost rigour.
Cirsa Gaming Corporation is a world leader in the leisure and gaming industry, and the top Spanish company in the sector. It employs 16,000 people. It achieved an operating income of 1,818 million Euros in 2012.

Today it has 31 traditional casinos, 81 electronic casinos, 31,848 slot machines, 80 bingo halls, 154 arcades, 358 sports betting outlets, 2,008 lottery terminals and 2,583 video lottery terminals in Spain, Italy and Latin America, and … it is developing online gaming activity in Spain and Italy with the licenses it has been granted.

For more information:

Pablo Llorens Sunyer
Corporate Director for Image and Communications
CIRSA Gaming Corporation
Tel: +34 93 739 6828 - +34 93 739 6700
pllorenss@cirsa.com
 
 
 

Spain
corporate
22/05/2013
Firts Quarter Results 2013

CIRSA CONTINUES TO IMPROVE ITS RESULTS

CIRSA'S OPERATING PROFITS GREW BY 5.1% TO 81.3 MILLION EUROS IN THE FIRST QUARTER OF 2013

 

Cirsa Gaming Corporation, a leader in gaming and leisure, and the number one Spanish company in the sector, achieved operating revenues of 390 million euros in the first quarter of this year, a 0.3% increase over the same period last year, and operating profits of 81.3 million euros, a 5.1% increase over the first quarter of 2012, thus hitting its announced profitability targets. These results have mainly been due to:

  • Continuous monitoring of the Group’s strategy focusing on key markets and businesses in terms of the efficiency and productivity of both its operations and investments.
  • Efficient implementation of its plans in Spain, which made it possible to confront the current market situation.
  • The expansion and remodelling of casinos in Argentina, Panama, Colombia and Peru, which translated into a significant increase in the number of customers.
  • The B2B Division in the area of slot machines for the Spanish bars channel continues to consolidate its leading market position based on an innovative and efficient product strategy
  • In Mexico, the focus on efficiency in management, as well as improvements in products and customer service, were determining factors in the improved results.
  • In Italy, the roll-out of Video Lottery reached the number of 2,400 terminals, 93% of the rights acquired, and Cirsa maintains its position as the operator with the best performance in terms of revenue per machine.
  • The progress made with regulatory issues affecting the bingo halls of Catalonia and Madrid, with Bingo Plus and eBingo, has contributed to improving the adverse situation of this sub-sector in Spain.
  • In the area of live sports betting, Sportium consolidated its leadership position in Madrid and Aragon with market shares of over 50% of the total business volume and more than 200 points of sale in these two regions. It also continues to expand in Valencia, where this month it reached 300 terminals in the bars channel.
  • Cirsa.es continues to grow, attaining a level of 74,000 registered customers, basically in Sports Betting and Casino.
Cirsa is confident that it will continue to hit its targets for this year and appreciates the commitment and dedication of its entire team. Cirsa Gaming Corporation is a world leader in the gaming and leisure industry, and the number one Spanish company in the sector. It employs 15,000 people.

It achieved operating income of 1,818 million euros in 2012. Today it has 31 traditional casinos, 82 electronic casinos, 31,226 slot machines, 80 bingo halls, 154 gaming arcades, 358 sports betting outlets, 2,008 lottery terminals and 2,583 Video Lottery terminals in Spain, Italy and Latin America, and it is pursuing online gaming in Spain and Italy with the licenses it has been granted.

For more information:

Pablo Llorens Sunyer
Corporate Director for Image and Communications CIRSA Gaming Corporation
Tel. +34 93 739 6828 - +34 93 739 6700
pllorenss@cirsa.com
Spain
Corporate
09/09/2013
Second Quarter 2013 Results

CIRSA increase their operatin profit by 5.1% to 166 Million Euros in the first half of 2013

In the first half of this year, CIRSA, a leading gaming and entertainment company and the first Spanish company in the sector, achieved an operating profit of 166 million euros, up 5.1% over the first half of 2012. Revenues stood at 778 million euros.


In the second quarter, with a turnover of 388 million euros, the same amount as last year’s second quarter, operating profit reached 85 million euros, up 5.2% from that recorded in the same period in 2012.

The rigorous implementation of their operational plans and a continuous policy of efficiency and productivity improvements, both in operations and investments, have allowed the Group to obtain favourable results and meet their commitments with the markets.

 The most noteworthy aspects of the period have been the following:

  • Panama, Colombia and Argentina have led the favourable evolution of the Casino Division in Latin America, which has been crucial for the period's results.
  • The focus of the B2B Division on the Spanish market and the acceptance of the new products have taken the lead in selling arcade machines for the hotelier sector, with a sustained market share of 55%.
  • The successful implementation of the Action Plans programmed by the Slots Division has improved the level of income per machine and corrected the broad market trend of reducing the number of machines in the domestic market.
  • The good performance of Bingo Plus in Catalonia, the favourable development of electronic Bingo in Madrid and the continuous improvement of efficiency focused on cost optimisation have contributed significantly to an increase of revenue of the Bingo Division in Spain.
  • Sportium consolidate their presence in the Communities of Madrid and Aragon with a market share of 45%; in the Community of Valencia, their expansion project shows positive results and they have already started to operate in Murcia and Galicia.
  • Cirsa.es consolidates its leadership position among the Spanish companies operating in the sector.
  • In Italy, despite the economic difficulties of the market, revenues from prize slot machines in the hotelier sector have remained within expectations, thanks to the good acceptance of the product and the distribution quality of the machines. In the field of video lotteries, Cirsa has reached the number of 2,480 deployed terminals, 96% of acquired rights, and has become the operator with better outcomes in terms of revenue per machine.Currently it is the only dealer with three platforms; having a wider product range allows Cirsa to provide a broader and more competitive game offer.
  • In Mexico, the improvements achieved, both in revenue and cost control management, have led to better results than those achieved the previous year.

Despite the persistent economic weakness of the Spanish market, Cirsa are confident they will be able to achieve their business goals in the second half, thanks to the commitment of the whole team, the efficient implementation of operational plans in Spain and Italy and the favourable evolution of the operations in Latin America.

According to Joaquim Agut, director general of Cirsa, “the focus and commitment of the entire Cirsa team, in a generally complex situation, either because of weak demand or widespread devaluations in our markets, are once again allowing the Company to meets all their goals.” Cirsa Gaming Corporation is a world leader in the leisure and gaming industry, and the top Spanish company in the sector.


It employs 15,000 people. Today it has 31 traditional casinos, 82 electronic casinos, 31,314 slot machines, 80 bingo halls, 154 arcades, 550 sports betting outlets, 2,008 lottery terminals and 2,583 video lottery terminals in Spain, Italy and Latin America, and … it is developing online gaming activity in Spain and Italy with the licenses it has been granted.

 

For more information:

Pablo Llorens Sunyer
Corporate Director for Image and Communications
CIRSA Gaming Corporation
Tel: +34 93 739 6828 - +34 93 739 6700
pllorenss@cirsa.com

Spain
corporate
27/11/2013
Third Quarter 2013 Results
At the end of the first nine months of the year CIRSA'S OPERATING PROFIT totalled EUR 252.3 MILLION, REPRESENTING AN INCREASE OF 5.1%.

These earnings exclude the agreement to make a EUR 36 million one-off payment to Italy's Court of Auditors.

  • As at 30 September of this year, Cirsa, the leading multinational in the gaming and leisure sector and the largest in Spain, obtained operating profits of EUR 252.3 million, prior to the agreement to make a one-off payment of EUR 36 million for the proceedings filed by Italy's Court of Auditors. These earnings represent a 5.1% increase over the same period of last year. Operating income stood at EUR 1,176.3 million, similar to last year's figure.

  • In the third quarter, Cirsa’s operating profit totalled EUR 86.2 million, up 5.1% on the figure for the same quarter of 2012. Likewise, turnover increased by 2.8% to EUR 398.3 million.
  • The ongoing prioritisation of efficiency and productivity, combined with the programmes and measures implemented to curb spending, have ensured the Group's sustained and balanced growth and allowed it to meet its commitments with the markets.

  • The most significant aspects of the business during the same context of economic weakness were:
    • Growth of the Casinos division in Latin America through the introduction of new machines across the entire region, the expansion of Halls in Panama, and rollout of the Tito system (payment collection through a ticketing system) in Colombia, in addition to numerous efficiency and productivity programmes. This has mitigated the negative impact of exchange rates.
    • In casinos in Spain, a good tourist season has made a positive contribution to earnings.

    • In the Spanish Slots Division, the addition of new outlets and optimised machine rollout has led to improved revenues and earnings.

    • In July, the purchase of seven Slot operators in the Spanish market was closed, which has meant the addition of a further 4,500 machines to the total, which now stands at around 25,300. Their integration into the Group will create important operational synergies.

    • In the Spanish market of the manufacture and sale of arcade machines for the hotel sector, Unidesa has held on to its considerable market share of more than 55%, consolidating it as the leader of this industry. The behaviour of the B2B division remains very positive.

    • The Spanish Halls division has improved its market share in the communities where it is present, largely through the introduction of new products, ongoing streamlining of costs and management efficiency.

    • The rollout of Video Lottery in Italy now incorporates virtually all of the 2,583 acquired rights, and Cirsa has the best result on the market for revenue per machine.

    • Cirsa Italy has reached a settlement agreement for the proceedings brought by the Italian Court of Auditors, the Corte dei Conti.

    • In 2007, the Italian Corte dei Conti (CdC) filed a suit against each of the 10 operating companies of the interconnected gaming machines network. Cirsa has reached an agreement with the CdC to settle its case and has now made the payment of EUR 36 million, corresponding to 30% of the requested amount.

    • In live betting, Sportium has already obtained a market share of 55% in Madrid and Aragon; the good results it obtained in Valencia and Murcia have continued and it now has 75 outlets in Galicia, where it is currently launching. Sportium also has more than 720 outlets in the regions of Madrid, Valencia, Murcia, Aragon, Galicia and Navarre.

    • In Mexico, the expansion of several halls has managed to mitigate the impact of a weak demand caused by the country's economic slowdown, compounded by inclement weather in some states.

    • Despite a weak Spanish economy and the devaluation of local currencies against the Euro in our Latin American markets, Cirsa expects to meet its business targets for this year through the consistent implementation of its strategy, which focuses on efficiency and productivity, the meticulous implementation of its Action Plans and the commitment of its whole team.


    • For more information:
      Pablo Llorens Sunyer
      Corporate Director for Image and Communications
      CIRSA Gaming Corporation
      Tel: +34 93 739 6828 - +34 93 739 6700
      pllorenss@cirsa.com
    Spain
    Corporate
    31/03/2014
    2013 Annual Results
    CIRSA SAW OPERATING PROFIT GROW BY 5% TO REACH 338.1 MILLION EUROS FOR 2013

     

    Cirsa Gaming Corporation, a leading gaming and entertainment multinational and the largest operator in the Spanish sector, recorded operating profits of 338.1 million euros in 2013 for an increase of 5% over the previous year (prior to the agreement to make a one-off payment of 36 million euros for the proceedings filed by Italy's Court of Auditors in 2007).

    Despite generalised devaluations in Latin America, operating income came in at 1,584.9 million euros, slightly higher than the previous year. The group's strategy focused on efficiency and productivity, along with a selective investment policy and rigorous implementation of purposeful action plans, have once again enabled the Group to meet its commitments to the markets, despite a continuing context of economic weakness in our country and the devaluation of local currencies against the euro in our Latin American markets.

    Joaquim Agut, Managing Director of the Group, said: "In 2013, our focus and precise execution of the plans designed by Cirsa’s team have enable us to consolidate the Group's financial results one more year. Despite the still complex economic environment, we expect to continue in the path of consolidation in 2014, both in the markets and the segments where we operate, being always faithful to the strategy that has repeatedly allowed us to improve our results."

     HIGHLIGHTS FOR 2013:

    • Cirsa successfully completed the placement of a bond issue for a total 100 million euros last January. This confirms again the trust and recognition of investors in Cirsa.
    • In Panama, Cirsa renewed its license for an additional period of twenty years until 2038.
    • In Italy, the concession for the operation of a network of gaming machines was renewed for ten years, until 2023.
    • Cirsa closed the purchase of seven slot operators in the Spanish market. This has meant the addition of a further 4,500 machines, which is a 22% increase, to the total, which now stands at 25,046.
    • The roll-out of the concession for video lottery terminals in Italy reached 97% as planned.
    • Sportium, the leader in live betting, has started to operate online.
    • The launch of Wingo, Cirsa’s electronic bingo, in Madrid and Catalonia, is allowing us to expand the customer base in this segment.


    The most notable aspects concerning the various business units are as follows:

     

    Casino Division

     

    The Division’s income in all countries has grown in their currencies and above their inflation, over the previous year. Argentina, Colombia, Panama and Peru are the countries that have contributed most significantly to the Division’s results.

    Total revenues have grown and results have improved despite devaluations of their currencies. In Panama, the number of slot machines has been increased and six halls have been refurbished. Moreover, a new hall was opened at the La Cabima shopping mall in Panama City. A new bingo hall with more than 500 machines and a capacity of 570 players was acquired in Olabarría, in the province of Buenos Aires, Argentina. Implementation of permanent improvements in customer service systems has continued. These improvements include the rollout of a ticket-in-ticket-out system (the TITO system), which is now available in 76 halls in Latin America. A total of 1,847 machines were acquired to renew and expand the number of machines in halls in several countries. In Spain, a good tourist season has made a positive contribution to the Division’s earnings.

     

    Slot Division

    The addition of new outlets and optimised machine rollout has led to improved revenues and earnings. In July, the purchase of seven slot operators in the Spanish market was closed. This has meant the addition of a further 4,500 machines, or a 22% increase, to the total, which now stands at 25,046. The new market-oriented organisational model, which has increased revenue, has been consolidated as well. The rollout of video lottery terminals in Italy reached 97% of the total acquired rights the concession allows for with 2,547 terminals and Cirsa has the best result on the market in revenue per machine. In Italy, the number of AWP recreational machines in the hotelier sector was increased to 10,867 machines. Cirsa has also maintained its leadership in revenue in this segment. Cirsa reached an agreement to settle a lawsuit filed by Italy’s Court of Auditors in 2007 against each of the 10 operating companies of the interconnected gaming machines network. This involved a payment of 36 million euros, corresponding to 30% of the requested amount.

    B2B Division

    Cirsa, under its Unidesa trademark, has maintained a market share of 55% in number of units of B machines sold for the hotelier sector. This is the result of continued success in the launch and favourable reception of new products.

    Gaming Hall Division

    In Spain, this division, which includes bingo and gaming halls, has improved the results of the previous year as a result of advances in regulatory matters, such as those of Bingo Plus in Catalonia and Wingo (Cirsa’s electronic bingo) both in Catalonia and Madrid. The measures undertaken in Italy have partially allowed us to compensate for the crisis in the country and in the bingo sector in particular, which was coupled with major tax increases and shorter hours in major cities for reasons beyond the company’s control. In Mexico, results have remained similar to those from the previous year, despite the unexpected closure of the gaming hall in Tuxtla, Chiapas. Live betting Sportium, the group’s brand in the sports betting market, ended the year with 380 shops and corners and over 400 terminals in bars, a total of 780 outlets. In the regions where the brand is better established, Madrid and Aragon, market shares exceeding 55% of total turnover were achieved and, in Valencia, Murcia and Galicia, where the brand began to operate in the second half of the year, 110 corners were opened and about 400 terminals were installed in bars.

    Online betting

    The Group decided to focus efforts on expanding the Sportium brand, the leader in live betting, to online gambling, by adopting a new technology that brings the best Internet product on any platform (PC, mobile and tablets).

    For more information:

    Pablo Llorens Sunyer
    Corporate Director for Image and Communications CIRSA Gaming Corporation
    Tel: +34 93 739 6828 - +34 93 739 6700
    pllorenss@cirsa.com

    Spain
    Corporate
    09/09/2014
    CIRSA increase their operating profit by 8.3% to 154 Million Euros Million Euros in the first half

    During the first half of the current year, CIRSA, a leading gaming and leisure company and the largest in the Spanish sector, achieved operating profits of 154.0 million euros, 8.3% over the first half of 2013, operating income came in at 760.0 million euros for an increase of 13.9% over the same period of the previous year.

    CIRSA’s operating profits in the second quarter amounted to 78.1 million euros, 7,7% over the same period of 2013 with a turnover of 370 million euros, 11.5% over the same period of the previous year, despite the general devaluation of Latin American currencies against the euro, especially the Argentine peso, which lost 62.3% of its value.

     

    The most noteworthy aspects of the period are the following:

     

    ·         In Latin America, despite unfavourable currency exchange rates, the Casino division has increased both its income and operating profits. Two new halls with 900 machines were opened in Argentina and collections were increased in Colombia and Panama, where machines continue to be upgraded to improve their features with TITO and Player Tracking technologies. The number of machines has been increased by 1,200 and 9 halls after the acquisition of a new operator in Peru.

    Casinos in Spain, where the rise of tourism in Marbella has had a positive influence, have shown some improvement.

    ·         The Slot division has shown an increase in revenue. The new regulations in the Communities of Madrid and Valencia, as well as the continuous improvement of operating efficiency, which has steadily increased contribution margins, have certainly helped the Division.

     

    ·         The roll-out of video lotteries in Italy has been completed with 2,518 machines and Cirsa maintain their leading position in terms of revenue per machine.

    The number of AWP recreational machines in the hotelier sector was increased to 8,850 machines after the recent acquisitions.

    ·         The B2B division maintains a market share of 54% in the sale of gaming machines for the hotelier sector in Spain, due to its continuous and successful launch of new products. Its collaboration with EAJA in Catalonia in developing BINJOCS, continuously launching new games in new generation terminals continues its positive development.

     

    ·         The Bingo division has notably improved its results in Spain thanks to the evolution of Wingo, Cirsa’s online bingo, the introduction of sports betting in Catalonia, the policy of continuous cost optimisation and the prioritisation of customer service.

     

    ·                     Arcades in Spain have increased both their revenue and operating profits as a result of the introduction of multi-game products, the favourable acceptance of the successful Unidesa models and the introduction of Sportium for sports betting in arcades in Catalonia. No doubt, strict cost controls and the corresponding improvement in margins have also contributed to this.

     

    ·         Sportium’s expansion plan keeps being implemented. 120 new points of sale have been opened in Catalonia. Sportium is the first sports betting company to operate in the region.

    Sportium shows a positive evolution in the other regions where it operates (Madrid, Valencia, Castilla la Mancha and Galicia) consolidating its leadership with a market share of 35% with specially good results in the hotelier channel in Valencia and Galicia.

    Sportium currently has 1,100 points of sale.

    ·       The Mexican market continues to show weak demand and the country's economic indicators do not show positive signs yet. Actions carried out to improve management efficiency, product upgrading and customer service continue, pending a stable legal and tax framework before undertaking new investments.

    Cirsa Gaming Corporation is a world leader in the leisure and gaming industry, and the top Spanish company in the sector. It employs 15,000 people. The company had an operating income of 1,585 million euros in 2013. Today it has 32 traditional casinos, 81 online casinos, 37,401 slot machines, 77 bingo halls, 120 arcades, 1,100 sports betting outlets, 3,125 lottery terminals and 2,518 video lottery terminals in Spain, Italy and Latin America, and it is developing online gaming activity in Spain and Italy with the licenses it has been granted.

     

    For more information:

    Pablo Llorens Sunyer

    Corporate Director for Image and Communications

    CIRSA Gaming Corporation

    Tel: +34 93 739 6828 – pllorenss@cirsa.com

     

     

     

     

    Spain
    corporate