Grupo CIRSA acquires 70% stake in Apuesta Total

Grupo CIRSA Increases Forecast as It Acquires Majority Stake in Apuesta Total

In a bold move to expand its footprint in the Latin American market, Grupo CIRSA is set to acquire a 70% stake in Apuesta Total, one of Peru’s leading online sports betting operators. This strategic acquisition comes as CIRSA ups its full-year EBITDA forecast to an impressive €680-€710 million, driven by strong revenue performance in the first half of 2024. As the company looks to capitalize on new opportunities and strengthen its position, the acquisition signals a significant step in CIRSA’s growth strategy.

CIRSA’s Financial Performance Surpasses Expectations

Grupo CIRSA, a dominant player in the global gambling industry, reported remarkable financial results in the first half of 2024, with revenue surpassing the $1 billion mark. The company’s casino revenue saw a robust 6% increase, reaching €478 million, while Spanish slots revenue rose by 4% to €208 million. This growth was supported by CIRSA’s new CRM strategy aimed at enhancing the customer experience in its casinos and an improved commercial model for slot distribution in Spain. These initiatives have bolstered the company’s market position, driving higher engagement and profitability.

Despite a 3.4% decline in betting revenue, even amid the excitement of Euro 2024, CIRSA remains optimistic about its future. The group’s upcoming acquisition of Apuesta Total is expected to reinvigorate its betting segment, particularly in South America. Apuesta Total, which reported over €100 million in gross gaming revenue in 2023, will provide CIRSA with a valuable foothold in the fast-growing Peruvian market, positioning it for further expansion across the region.

Strategic Acquisition of Apuesta Total

The acquisition of a majority stake in Apuesta Total marks a pivotal moment for CIRSA as it looks to diversify its portfolio and expand its presence in Latin America’s burgeoning online betting market. Apuesta Total’s established brand and significant market share in Peru make it an ideal addition to CIRSA’s growing portfolio. By integrating Apuesta Total’s operations, CIRSA aims to leverage its expertise to enhance the operator’s offerings and drive growth in the highly competitive online sports betting landscape.

This acquisition is also expected to boost CIRSA’s overall performance, providing a new revenue stream that complements its existing operations. As the group continues to refine its business model, Apuesta Total’s contribution will be instrumental in achieving CIRSA’s updated EBITDA forecast and reducing its leverage ratio to between 3.7x and 3.9x.

IPO and Debt Reduction Strategy

As CIRSA continues its aggressive expansion, the option of pursuing an IPO remains on the table. However, the company has emphasized that any move towards going public will be carefully timed to ensure optimal valuation and market conditions. In the meantime, CIRSA remains focused on reducing its corporate debt, which currently stands at €2.5 billion. By maintaining financial discipline and pursuing strategic acquisitions like Apuesta Total, CIRSA aims to strengthen its balance sheet and position itself for long-term growth.

Grupo CIRSA’s acquisition of a 70% stake in Apuesta Total is a strategic move that underscores its commitment to expanding its market presence and enhancing its revenue streams. With strong first-half results, a revised EBITDA forecast, and a focus on debt reduction, CIRSA is poised to continue its upward trajectory. As the company integrates Apuesta Total into its operations and explores the possibility of an IPO, CIRSA is clearly positioning itself as a leading force in the global gambling industry, ready to capitalize on new opportunities and deliver value to its stakeholders.