Cirsa loses over EUR 51 M in Q2

Cirsa unveiled Wednesday Second Quarter 2020 Results, as well as First Half 2020 Results.

For 2Q-2020, the company reported a negative Ebitda of €51.4 million and For 1H-2020, we Ebitda of €37.4 million.

As of June 30, 2020 Cirsa’s financial position is:

• Total net debt of €2,338.7 million
• Cash of €264.5 million
• Available credit facilities of €75.0 million
• Net debt to Ebitda ratio stands at 7.9x

As previously reported in its 1Q-2020 Results Report, CIRSA performed according to plan in January and February as the impact of COVID was minimal then and grew revenues and EBITDA YoY by 14% and 28% respectively.

During March, Cirsa had to close all operations other than online betting and online casino operations in accordance with the directives given by the countries in which it operates. 

“The health and safety of our people and customers are critically important to us. Since the beginning of the outbreak of COVID, we have been following WHO and CDC guidance as a global organization as well as any particular guidance or directive given by the countries in which we operate,” the company said.

According to Cirsa, operations were impacted by the closure of bars, casinos, arcades, bingo halls, sports betting, and manufacturing facilities, as a consequence of the temporary directives given by the respective governments of the countries where Cirsa operates. 

“Management is doing everything it can to minimize and mitigate the disruption and cost to the business, including preparing and executing an emergency cash management plan to ensure our liquidity position through a detailed prioritization of all payments and the optimization of financing sources,” the company added.

As part of this emergency cash management plan, in March 2020 the company has fully funded its €200 million Revolving Credit Facility. Additionally, in June 2020 Cirsa secured two new senior credit facilities: (1) a €55 million RCF maturing on December 2021, and, (2) a €20 million loan maturing on September 2025. Both credit facilities were fully funded on July 2020.

“As we believe COVID’s adverse impact on our businesses, operating results, cash flows and/or financial condition will primarily be driven by the severity and duration of the pandemic, the pandemic’s impact on the markets in which we are active and the global economy and the timing, scope, and effectiveness of governmental responses to the pandemic, which are all beyond our knowledge and control, at this time we cannot reasonably estimate the adverse impact COVID will have on our businesses, operating results, cash flows and/or financial condition, but the adverse impact could be material,” Cirsa said.

Second-quarter of 2020 compared to second quarter 2019

Net operating revenues and Ebitda were of €42.3 million and -€51.4 million due to the obvious negative impact of the temporary closure of all our operations on March 2020 with the exception of online business and the marginal contribution of the re-opening in Spain and Italy during the month of June. Financial expenses grew by €4.8 million in 2Q-2020 from 2Q-2019 due to the increase of Financial Debt originated by the funding of our €200 million RCF and the issuance of €390 million of 4.75% Senior Notes on May 2019 to fund the acquisitions of Giga and Sportium.

D&A expenses increased by €12.0 million due to the consolidation of the 2019 acquisitions: Giga (July), Sportium (Oct.) and 7 halls in Mexico (Nov.).

See the company’s full financial results here.