(AsiaGameHub) – CIRSA posted one of its most robust quarterly results in recent times in Q1 2026, fueled by its retail leadership, online growth, and reduced financing expenses.
Net operating revenues hit an all-time high of €623 million (£538.9 million) in the quarter, rising 8% year-over-year— or 9.5% when excluding foreign exchange impacts— from €576.7 million.
EBITDA climbed to €193.9 million (Q1 2025: €178.8 million), marking an 8.5% increase on a reported basis and a 10.8% rise when currency effects are excluded, with margins staying steady at 31.1%.
These results signaled the Blackstone-supported firm’s 71st straight quarter of EBITDA expansion, not counting the COVID-19 era.
Net profit jumped to €44.6 million (Q1 2025: €28.1 million), while adjusted net profit grew by 32.8% to €69.9 million.
Unlike previous years when acquisitions played a major role in growth, almost all of Q1’s expansion was organic.
Leadership noted that only acquisitions finalized in Q4 2025— mainly a set of bolt-on deals that boosted the group’s retail casino and slot operations in Spain, Peru, and Morocco— had an impact on the year-over-year comparison.
Retail continues to lead
Once again, the retail segment acted as the group’s main source of earnings.
Excluding foreign exchange, retail revenues rose 9.3%, and EBITDA went up by 13.3%. The Spanish slots unit was a critical driver: its revenues grew by 13.1%, and EBITDA spiked 17.8% to €64.3 million.
Leadership credited Spain’s strong results to multiple factors: the slot replacement initiative, new game rollouts, tech upgrades, and enhanced venue efficiency.
Challenges in CIRSA’s sports betting segment
CIRSA’s online gaming and betting arm recorded some of the group’s most impressive operational metrics, though profitability faced pressure from tax reforms.
Online turnover grew by 22.4%, with casino turnover up 23.9% and sports betting turnover increasing by 19.7%. Revenue rose 9.4%— all organically— even though February’s “customer-favorable sports betting outcomes” had a negative effect on margins.
Yet, online division EBITDA fell 11.9% year-over-year to €21.4 million. The main cause, per the group, was Peru’s new online gaming tax system— which leadership said cut the online EBITDA margin by roughly 539 basis points in the quarter.
Peru introduced regulations for online gaming in 2024, and the tax framework was fully put in place by the second half of 2025.
Although this created short-term pressure on profitability, CIRSA leadership reaffirmed its confidence that operational efficiencies, scale benefits, and the growth of newer online markets like Colombia, Mexico, and Panama will slowly drive recovery in the region.
High-margin retail operations— especially Spanish slots and casinos— kept generating significant cash flow, which also offset weaker online margins and lessened dependence on the historically more volatile sports betting markets.
Among the most notable developments in the quarter was a significant improvement in financial profitability, driven by reduced financing costs.
Financial expenses dropped by €17.9 million year-over-year, going from €52.5 million to €34.6 million. This decrease was fueled by refinancing efforts finalized in late 2025, debt cuts made the prior year, and lower average borrowing costs after the company’s 2025 IPO and bond management actions.
Leadership indicated that annualized financing savings are projected to surpass €60 million, with further cuts probable after upcoming bond refinancings set for July 2026.
Debt position sees dramatic improvement
CIRSA’s total net financial debt still amounted to a massive €2.05 billion, with gross financial debt at €2.36 billion.
That said, a notable year-over-year improvement is evident when compared to Q1 2025’s corresponding figures of €2.64 billion and €2.92 billion.
The firm’s leverage ratio also experienced a significant year-over-year decrease, dropping from 3.7x in Q1 2025 to 2.7x by Q1 2026’s end.
The casino division also turned in a strong performance, with revenue growth picking up pace compared to 2025.
Revenues rose by 8.3%— or 10.7% when FX effects are excluded— while EBITDA grew by 8.2% on a reported basis and 11.5% without currency impacts.
Growth was widespread across the various countries where CIRSA operates, such as Panama, Colombia, Peru, and Morocco.
Mexico also stayed resilient, even with temporary venue closures in February due to circumstances beyond the company’s control.
Peru— a major topic of discussion for CIRSA in Q1— was a key emerging market.
The firm expanded its physical presence there considerably, growing the number of casinos from 19 to 23, slot machines from 2,611 to 3,434, and gaming tables from 37 to 61.
Indications suggest that leadership at the IGBM Top-100-listed company is confident in Peru’s long-term gaming market potential, even with recent regulatory shifts impacting the online segment.
CIRSA’s Italian slots operation stayed relatively mature and slow-growing, yet still delivered positive outcomes in what the company called a “stagnant retail market”.
Revenues went up by 2%, and EBITDA climbed by 3.6%. CIRSA added more slot machines and video lottery terminals (VLTs) in Italy.
Spain grew in importance within the group’s earnings composition, making up just over 50% of EBITDA in the quarter— up from 48.2% in FY 2025.
Leadership reaffirmed its full-year 2026 guidance: €2.5 billion to €2.56 billion in revenues and €800 million to €820 million in EBITDA. It also noted that current performance is on track to hit the upper end of those ranges.
A celebratory anniversary?
Despite these positive results, the company’s shares have fallen by just under 1% following the news, trading at €12.96 at noon UK time.
Investors might worry about the sports betting segment, but CIRSA stands to benefit from the 2026 FIFA World Cup approaching— an event that should boost revenue, especially in its core markets of Spain, Colombia, and Peru.
Interestingly, the World Cup will end on July 19— just eight days after CIRSA celebrates its first anniversary of listing on the Bolsa Madrid Stock Exchange.
Questions may also be raised about the previously mentioned stagnant Italian market, as well as CIRSA’s free operating cash flow— which plummeted from €85.8 million in Q1 2025 to €37.7 million in Q1 2026.
But the company explained this drop was due to the reversal of a one-time positive working capital gain recorded in FY2025.
Regardless of investor confidence levels, leadership appears optimistic as the firm keeps cutting its total debt and extends its streak of 71 consecutive quarters of EBITDA growth— as Spain’s largest gambling company enters a busy phase.
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