Cirsa sees further improvement in bingo revenues

Cirsa sees further improvement in bingo revenues

Thursday, April 6, 2017 Posted by James Walker

Cirsa Gaming Corporation has booked a 4.8% increase in operating profit in 2016, due primarily to further improvements in the Spanish bingo market, new casino openings in Latin America and the ongoing success of its sports betting business, Sportium.

In the 12 months to 31 December, operating profits for the group – which operates 133 casinos, 67 bingo halls, 2,000 sports betting outlets and more than 5,500 lottery terminals around the world – totalled €398.3 million, compared with €380 million in 2015.

Operating income for Barcelona-based Cirsa was €1.61 billion, up 0.8% over the previous year and in line with the group’s efficiency strategy.

Chief executive Joaquim Agut said the group has “grown steadily” for 42 consecutive quarters, despite the “context of devaluations and unfavourable taxation in which we have been operating”.

“The correct implementation of the group’s operating plans in the various locations and businesses and the overall improvement of all activities in Spain have helped to achieve these results, which have exceeded market expectations,” Agut said.

Cirsa does not publish sector-by-sector financial data, but it said among the highlights of 2016 were the openings of the Napolitano casino in the Dominican Republic and Milla de Oro in Medellin, Colombia; the notable improvement of the bingo division in Spain, which has already led several years of improvement; and the growth above the average of the Sportium market, which already operates in 15 autonomous communities.

When questioned over the resurgence of the group’s bingo operations, a Cirsa spokesperson told TotallyGaming.com: “The Spanish bingo market seems to confirm some signs of recovery, considering the economic dynamics of recent years.

“Regarding Cirsa’s particular case, one of the reasons for recuperation of the bingo business is [our] proactive marketing and innovative commercial plans that have been implemented in recent years. These plans have coincided with a change of the bingo’s sector trend and the improvement of the general economy itself.”

Totally Gaming says: While Cirsa celebrates 42 consecutive months of group-wide growth, the company’s bingo operations were slow to recover from Spain’s economic downturn. The group maintained its commitment to the sector, however, and now – following the implementation of a cost optimisation strategy, loyalty programmes and the addition of new multigame machines – the division is poised to benefit from Spanish consumers’ increasing confidence in the months ahead.

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