CIRSA reports record revenues and reduced debt in Q1 2026, driven by strong retail performance

Spanish gaming giant CIRSA opened 2026 with record revenues, sharply lower debt, and another quarter of EBITDA growth, as its retail business continued to offset pressure in online betting margins following Peru’s new regulatory framework.

The Blackstone-backed operator reported net operating revenues of €623 million ($723.4 million) for the first quarter, up 8% year-on-year from €576.7 million, while EBITDA rose 8.5% to €193.9 million ($225.1 million). Excluding currency effects, revenue growth reached 9.5%, and EBITDA increased 10.8%.

The results marked CIRSA’s 71st consecutive quarter of EBITDA growth, excluding the COVID period, reinforcing the company’s position as one of Europe’s most consistently profitable gaming operators.

Net profit climbed to €44.6 million ($51.8 million), compared to €28.1 million in Q1 2025, while adjusted net profit surged 32.8% to €69.9 million ($81.1 million).

Unlike previous years, where acquisitions played a central role in expansion, most of the company’s growth during the quarter came organically. Management said only acquisitions completed late in 2025, mainly in Spain, Peru, and Morocco, contributed to the year-on-year comparison.

Retail operations continue to drive earnings

Retail remained the backbone of CIRSA’s business, delivering the strongest contribution to group earnings.

Retail revenue increased 9.3% excluding foreign exchange impacts, while EBITDA rose 13.3%. Spain’s slot machine division stood out in particular, with revenue rising 13.1% and EBITDA jumping 17.8% to €64.3 million.

The company attributed the performance to slot replacement programmes, new game launches, technology upgrades, and improved productivity across venues.

The casino division also posted strong results across multiple jurisdictions. Revenue increased 8.3%, or 10.7% excluding FX effects, while EBITDA rose 8.2% on a reported basis.

Markets including Peru, Colombia, Panama, and Morocco all contributed to growth, while Mexico remained resilient despite temporary venue closures earlier in the quarter.

Peru emerged as one of CIRSA’s key expansion markets. During the quarter, the company increased its number of casinos there from 19 to 23, while slot machines expanded from 2,611 to 3,434 and gaming tables from 37 to 61.

Online growth strong despite Peru tax pressure

CIRSA’s online gaming and betting business continued to grow rapidly operationally, although profitability was affected by Peru’s recently implemented online gaming tax regime.

Online turnover increased 22.4%, with casino turnover up 23.9% and sports betting turnover rising 19.7%. Revenue in the online segment grew 9.4%, entirely organically.

However, EBITDA in the division fell 11.9% year-on-year to €21.4 million. CIRSA said Peru’s new tax framework reduced online EBITDA margins by roughly 539 basis points during the quarter.

Despite the short-term pressure, management expressed confidence that scale advantages and operational efficiencies across regulated Latin American markets would help margins recover over time.

Financing costs fall sharply as debt drops

One of the most significant developments during the quarter came from CIRSA’s balance sheet.

Financial expenses declined by €17.9 million year-on-year, falling from €52.5 million to €34.6 million, following refinancing initiatives completed in late 2025 and lower borrowing costs after the company’s IPO and bond restructuring efforts.

Management said annualized financing savings are expected to exceed €60 million, with additional reductions likely after upcoming refinancing activities later this year.

The company’s debt position also improved substantially. Net financial debt fell to €2.05 billion, compared to €2.64 billion in Q1 2025, representing a reduction of more than €500 million year-on-year.

Meanwhile, CIRSA’s leverage ratio dropped from 3.7x to 2.7x over the same period.

Spain further increased its importance within the group’s earnings mix, accounting for just over half of total EBITDA during the quarter.

Despite concerns around online betting margins and softer cash flow generation, CIRSA maintained its full-year guidance of between €2.5 billion and €2.56 billion in revenue and €800 million to €820 million in EBITDA, while indicating current performance is tracking toward the upper end of those targets.