CIRSA registers 37.5 MILLION EUROS of OPERATING PROFIT in the Third Quarter of 2020

CIRSA, a leading multinational in gaming and the leading company in the sector in Spain, recorded an operating profit of 37.5 million euros in the third quarter of 2020. The operating income from July to September stood at 232.8 million euros. The accumulated result in the first nine months 2020 was an operating profit of 74.9 million euros and an operating income of 630.9 million euros.

Although there is a strong impact on operations and results due to closures and restrictions of all kinds derived from the pandemic, the improvement in the results of the third quarter compared to the second is due to the reactivation of the hospitality industry and the rest of gaming subsectors in Spain and Italy, which restarted their activity in June.

The reopening in these two European countries represented a growth in the slot division compared to the same period of 2019. In Latin America, the gradual reopening at the end of the third quarter of gaming halls in the Dominican Republic, and partially in Mexico and Colombia under significant restrictions hours and capacity, had a marginal impact on the Group's results. Likewise, CIRSA highlighted Sportium's contribution thanks to the return of the main sports competitions and constant product improvement.

Costa Rica and Panama joined the third quarter reopening in mid-October. In both cases, with time limits, capacity and additional services dictated by the various authorities. The company's operations in Peru, Morocco and part of those carried out in Mexico (7 rooms) remain inactive.

In the new reopening, CIRSA continued to demonstrate the consistency and effectiveness of its business plans, as well as the health, safety and “Play Safe” plan, designed in early March and applied from the first day of the new openings.

The plan has been one of the key elements to have the trust of customers since the restart of the activity. In this regard, the reopening has been carried out with the highest security standards for both customers and employees.

Likewise, and from the different states of alarm, the Company has implemented numerous measures to safeguard its sustainability in the short, medium and long term, mainly by protecting liquidity and reducing operating costs. Thus, the Group's liquidity at the end of the third quarter stood at 353 million euros.

Highlights Q3 2020

CASINOS
• After the openings in Spain during the second quarter, the Casinos division started its activity again gradually between the end of August and September in the Dominican Republic and incipiently in Colombia, recovering a good level of visits despite the important restrictions capacity and hours.

SLOTS
• Despite restrictions, the reopening of bars and restaurants during the second quarter and the successful implementation of the reactivation plans allowed for a notable recovery in the results of the Slots division during the July-September period, partially supported by the latest models of machines launched by UNIDESA (Manhattan and Oro del Faraón), appearing as the best performing on the market.

ITALY
• In Italy, the activity was completely restarted at the beginning of July, allowing the gradual recovery of the level of activity in AWP machines, video lottery models (VLT) and gaming halls.

Bingo
• The Bingo Division kept all its rooms open during the third quarter under important time restrictions, still managing to increase the level of activity and the number of visits month by month thanks to the confidence transmitted by the “Play Safe” Plan of sanitary measures for employees and customers. The improvement in expected results also responded to the loyalty actions launched since the reopening.

MEXICO
• In the third quarter, Mexico continued adding new reopens after the first ones started at the end of the second quarter. Some of the rooms received a visit from municipal and national authorities who praised the Company's comprehensive plan on prevention and health safety measures for customers and employees, as well as the facilities themselves. The restrictions imposed in Mexico, which affect hours, capacity and services, are the strictest of all our markets.
B2B-UNIDESA
• Activity in the Industrial area returned to a certain normality as commercial activity increased both in the sale of machines of the Manhattan and Oro del Faraón models, as well as in the installation of gamning hall management systems in Spain (Forward Systems) that continues to consolidate. Also in the gaming halls sector, the commercial launch of Storm Cash, UNIDESA's new direct gaming product, stood out, with an excellent reception from customers.

GAMING HALLS
• In July, the division was able to reopen all the gamning halls in Spain, with the health and safety measures contemplated within the “Play Safe” Plan, obtaining great acceptance from both customers and official bodies, who highlighted the diversity and effectiveness of the measures implemented. These measures, together with the commercial actions implemented during that quarter, were key to achieving customer return, even taking into account the different time restrictions that affect each region.

SPORTIUM
• Sportium's retail business was fully operational during the third quarter. In addition, the restart of the most relevant sports competitions favored the dynamization of users and sales. Additionally, the online business - the only one that remained operational during the lookdown - also benefited from the reactivation of the sports calendar. Overall, activity levels were close to those at the beginning of the year.