SBC News Organic Cirsa fails to escape LATAM currency woes

Organic Cirsa fails to escape LATAM currency woes

Presenting its final trading update as an independent enterprise, Spanish gambling operator Grupo Cirsa SA reports progress on its home and LATAM expansion projects, despite its corporate performance being hindered by severe LATAM currency impacts.

Reporting strong growth across its Spanish home market properties (Spanish EBIT up 10%), Cirsa reports combined group revenues of €4.17 billion.

Nevertheless, Spanish growth could not sustain full Cirsa LATAM market currency declines against the Euro, which saw the company hit with a negative €14 million FX trading impact.

Despite the adverse South American FX conditions, Cirsa governance states that it will continue to push its ‘organic growth’ agenda for its LATAM properties, focusing on Table and Slots inventory growth across its casino properties of Panama, Colombia, Peru, Dominica and Costa Rica.

Closing a busy trading period, Cirsa governance would declare a corporate EBIT €41 million, in-line with 2017’s corresponding EBIT €42 million.

Moving forward, Cirsa will now operate under the ownership of US private equity firm Blackstone Capital, who this April completed a reported €2 billion acquisition for the Spanish gambling enterprise.

Under the terms of the deal, Cirsa’s Argentine arcade and casino properties will continue to be operated by the Lao Hernandez family.

Updating corporate stakeholders on its current financial position, Cirsa governance details that it has active cash balance of €180 million, combined with an available credit facility of €75 million.

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