Staff Reporter
Spanish gaming company Cirsa has posted strong Q1 results, attributing the success to improved global diversification. The group is expected to hit its 2025 forecasts after securing stakes in Peruvian Apuesta Total and Portuguese CasinoPortugal.
Despite the overseas deals, Cirsa’s primary market remains Spain, which still accounts for around half of its EBITDA. However, the deals helped the group post a 12.5% quarterly increase in net operating revenue and a 9.1% annual increase in EBITDA. The increases were driven by a 54.8% hike in online gaming and sports betting revenue.
The Global Gambling Market
Gambling is a global industry, and the continued expansion of iGaming and online sports betting has benefited players with access to more diverse casinos, a greater range of games, and extensive online casino bonus offers. Online gambling expert Alex Hoffmann points to free spins and generous sign up bonuses as some of the benefits of using online, offshore casinos. This global expansion has also benefited companies that have gotten behind the offshore phenomenon.
Cirsa History
Cirsa is one such company. Founded in 1978 by Manuel Lao Hernandez, the company initially dealt with the management of physical gaming machines in the Horeca channel. In 1985, it opened its first casino, Casino Marbella, and this was soon followed by bingo halls in Zaragoza and Castellon.
The 1990s saw Cirsa begin its international expansion, first moving into the Dominican Republic before entering the USA and Peru. By the turn of the century, Cirsa was also present in Italy, Panama, Venezuela, Suriname, and Argentina.
As well as expanding its physical borders, the Spanish company also expanded its product offerings, partnering with British firm Ladbrokes to launch Sportium, its sports betting arm. Today, Sportium is ranked as the number 1 betting house in Spain. In 2012, Cirsa became the first company to launch legal online gambling in Spain.
Apuesta Total Acquisition
The Spanish operator has continued to expand its operations, adding B2B software provision and other products to its portfolio, while continuing to expand in foreign markets. In July 2024, it announced the purchase of a 70% stake in the Peruvian online sports betting company Apuesta Total.
Apuesta operates over 500 physical locations in Peru, as well as a successful online operation.
At the time of the acquisition, a Cirsa statement said: “The acquisition is consistent with our M&A strategy focused on the online space and positions Cirsa as a key player in the developing Peruvian online gaming and betting market, which became regulated in March 2024, strengthening our omnichannel strategy in Latam.”
CasinoPortugal Acquisition
In December 2024, Cirsa followed up with the purchase of 68% of online gaming and sports betting operator CasinoPortugal. CasinoPortugal is one of the leading online operators in the Portuguese market and posted approximately €15 gross gaming revenue in 2024.
In a statement, Cirsa said: “ This acquisition is consistent with our M&A strategy focused on the online space and positions Cirsa as a significant player in the relevant Portuguese online gaming and sports betting market, which is among the fastest growing markets in Europe. Transaction will be funded from available cash at Cirsa, and the impact on Cirsa Group Proforma leverage is not significant.”
Online Segment
The CasinoPortugal deal helped Cirsa’s online sports betting and online gaming market boost net revenue by 54.8%, compared to last year, to €131.1m – a significant increase of €46.4m. The segment now accounts for nearly a quarter (22.7%) of the group’s total net revenue. In Q1 2024, it only accounted for 16.5% of the group’s revenue figure.
Physical Markets
Despite the continued global expansion, Spain remains the company’s primary market. In fact, the Spanish market now accounts for 49.3% of the company’s EBITDA, which represents a 0.6% increase.
Other major segments include Panama at 11.8%, down from 13%. Columbia, Italy, and the Dominican Republic all increased their shares to 9.9%, 8.8%, and 3.9% respectively. Increases in these markets helped combat foreign exchange developments.
Physical Casino Improvements
One area that saw more mixed results was that of the physical casino department, although there were underlying reasons. The company’s casino estate saw net revenue rise 0.6% to €238.7m, but EBITDA slid from €97.3m to €95.5m.
This slight decline came as a result of the company making renovations and significant improvements to 15 of its physical casinos. Cirsa says that it will continue to invest in improving the customer experience, helping to secure an increase in total visitor numbers to its casinos.
Slots Results
Of all the improvements the group saw, it was the Spanish slots segment that garnered the most attention. Net revenue in this sector increased 8.3% to €108.2m while EBITDA grew 17.8% and reached €54.5m for the quarter.
The number of slot machines increased slightly, but the growth was attributed primarily to an increase in average expenditure per player. Slots revenue and EBITDA also increased in the Italian market.
The company said of its increased slot revenue: “Our strategy to optimize the pool of slots continues to yield excellent results in terms of increased revenue per slot.”
Overall Results
Overall, these results led to net operating revenue of €576.7m in Q1 – a 12.5% year-on-year increase. Meanwhile, EBITDA was up 9.1% to €179.8m during the period.
IPO Still In The Plans
In its financial report, the group also confirmed that it still intends to undergo an IPO, although it didn’t confirm or suggest a date, stating: “Its execution and more specifically potential dates will depend on market conditions to ensure an optimal valuation of the company.”
Cirsa is expected to launch its IPO this year and, in February, Reuters suggested it would most likely happen in Q2, specifically in April, but there was no further development. In May 2024, it was reported that the company was looking for a valuation of €5bn, which would put it roughly on par with companies like Entain and Sportradar.
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