Spanish gaming company Cirsa are feeling the pinch in their bingo and slots operations, however surprisingly considering some of the trials and tribulations that the company has been experiencing profits are still up. It does mean however that any plans for growth will be put on a back burner until things do start to pick up in the Spanish economy.
A recent report on the Gambling Compliance website states that the Spanish bingo side of the operation has seen a severe dip of 8.3% in net operating revenues taking their figures to €67.8million. Cirsa is hoping that the bingo side of their operation will be thrown a lifeline with the introduction of new games across the bingo division which will compensate for the 11% drop in visitor numbers to their land based bingo halls. Cirsa are not having a good time either with the untimely swine flu outbreak in Mexico, Cirsa own the majority of shares in 22 Mexican offline bingo halls. So concerned were Cirsa that they were required to shut them for two weeks when the problem was at its most serious, which will undoubtedly affect trading figures quite badly.
Spanish slots in a spin
Cirsa’s Spanish slot machine operation saw figures take a tumble due to the economic crisis that is currently being felt in Spain, and their reports show that figures have fallen by 18% to €18.6m EBITDA (Earnings before interest, Taxes, Depreciation and Amortization) in the first quarter of 2009. Further pain was felt by the gaming company in the Italian slot division which saw the EBITDA fall a massive 28.3 per cent, this has been attributed to the changes in taxation levied on gaming machines in Italy which has risen from 12% to 12.7%. Further damage was undoubtedly done by the joint venture entered into with Ladbrokes which is expected to cost them €0.4 in start up expenses.
Considering all the bad news Cirsa have still managed to achieve double the net profit when compared to the same period the previous year, this has been attributed to the success felt by the brick and mortar casinos in South America and the Spanish casinos which are currently riding a crest of a wave with operating revenues up a really impressive 32%. Projects that the company already has planned will continue so the new casino in Argentina will hopefully open as scheduled in September.