Cirsa Enterprises (CIRSA) Q1 2025 earnings summary

Executive summary

• Net revenues for Q1'25 reached €576.7 million (+12.5% YoY), with EBITDA/operating profit at €179 million (+9.1% YoY), both setting new records, driven by strong performance across all business units, especially online gaming and betting.

• Online gaming and betting revenues surged 54.8% YoY in Q1'25, now representing 22.7% of total group net revenues, with EBITDA up 51.9% to €24.3 million.

• Free operating cash flow more than doubled to €85.8 million, reflecting improved EBITDA and working capital management.

• Geographical diversification offset negative FX and macro headwinds in Mexico and Panama.

• Sustainalytics ESG rating improved to #2 globally in gaming, with all ESG KPIs on track and a 'low risk' rating confirmed.

Financial highlights

• Net operating revenues reached €576.7 million in Q1'25, up from €512.8 million in Q1'24.

• EBITDA margin was 31.0% in Q1'25 (down 97bps YoY), mainly due to higher contribution from lower-margin online business.

• Net profit increased to €18.7 million from €15.5 million YoY.

• Free operating cash flow increased 112.9% YoY, with cash availability at €567.6 million as of March 31, 2025.

• 19-year CAGR: net operating revenue +5%, EBITDA +13%.

Outlook and guidance

• FY2025 guidance: net revenues €2,280-2,330 million (+6-8% YoY), EBITDA €740-750 million (+6-7% YoY), leverage <3.3x.

• High single-digit overall net operating revenue growth expected, with online segment growth in the low-to-mid twenties.

• CAPEX to remain at 7–9% of net operating revenues, trending down.

• Potential IPO remains under consideration, timing dependent on market conditions.