CIRSA Posts Strong Revenue In Q1 To Cut Debt By €500m

CIRSA achieved one of its strongest quarterly performances in recent years during Q1 2026, supported by retail strength, online expansion and lower financing costs.

Net operating revenue reached €623m, up 8% year-on-year, or 9.5% excluding currency effects. EBITDA rose to €193.9m, marking an 8.5% increase, while margins held at 31.1%. The company also extended its streak to 71 consecutive quarters of EBITDA growth, excluding the COVID period.

Net profit climbed to €44.6m from €28.1m, with adjusted net profit rising 32.8% to €69.9m. Unlike previous periods, most of the growth came organically instead of through acquisitions, with only late-2025 deals contributing marginally year-on-year.

Retail operations remain the main earnings driver

Retail continued to anchor CIRSA’s performance. Revenue in the segment grew 9.3% excluding currency effects, while EBITDA increased 13.3%. Spain was central to this growth, particularly within the slots division.

Spanish slots revenue rose 13.1%, with EBITDA reaching €64.3m after a 17.8% increase. The performance was driven by slot replacement programmes, new game launches, technology upgrades and improved venue productivity.

The whole casino division also recorded steady gains, with revenue up 8.3% and EBITDA increasing 8.2%. Growth came from multiple markets including Panama, Colombia, Peru and Morocco. Mexico remained stable despite temporary closures in February.

Spain’s importance to the group increased further, contributing just over 50% of total EBITDA during Q1.

Online growth continues but profitability pressured by taxation

CIRSA’s online division delivered strong operational growth but faced margin pressure. Turnover rose 22.4%, with casino up 23.9% and sports betting increasing 19.7%. Revenue grew 9.4% entirely through organic activity.

However, EBITDA in the segment declined 11.9% to €21.4m. The drop was largely linked to Peru’s new online gaming tax regime, which reduced margins by over five percentage points during the quarter.

Management expects this pressure to ease over time as efficiencies improve and newer markets such as Colombia, Mexico and Panama mature. High-margin retail operations offset volatility in online sports betting performance.

Peru remained a key growth market despite regulatory changes. CIRSA expanded its footprint there, increasing casinos from 19 to 23 and significantly growing its slot machine and table count.

Lower financing costs and debt reduction strengthen balance sheet

Another key contributor to improved profitability was the reduction in financing costs. Financial expenses fell by €17.9m year-on-year to €34.6m, driven by refinancing initiatives, debt reduction and lower borrowing costs following the company’s 2025 IPO.

The company expects annualised savings to exceed €60m, with further reductions anticipated after additional refinancing later in 2026. Net financial debt stood at €2.05bn, down from €2.64bn a year earlier, while the leverage ratio improved from 3.7x to 2.7x.

Despite the strong results, free operating cash flow fell to €37.7m from €85.8m, mainly due to the reversal of a one-off working capital benefit recorded in 2025.

Management maintained its full-year guidance, projecting revenue between €2.5bn and €2.56bn and EBITDA of €800m to €820m, with current performance tracking toward the upper end of those ranges. Investor reaction was muted, with shares slightly lower following the update.

There is attention on sports betting performance and the slower Italian retail market, though the upcoming FIFA World Cup should provide a near-term boost across key markets.

Spanish giant CIRSA has announced record Q1 revenue in 2026, owing to online expansion and an improved retail system. Key metrics like operating revenue, EBITDA, margins, and net profit were all increased to mark a hugely successful quarter. The company projects ending the year within the upper ranges of its full-year guidance.