Turismo
GROUPE PARTOUCHE: Good annual income 2021/2022 / Strong growth in income driven by the sharp upturn in activity
Good annual income 20 2 1 / 20 2 2
Strong growth in income driven by the sharp upturn in activity
Paris, 24 January 2023, 06:00 p.m.
During its meeting held on the 24 January 2023 and after having reviewed the management report of Groupe Partouche Executive Board, the Supervisory Board examined the annual accounts at 31 October 2022, that are being audited.
Strong growth of the turnover thanks to the resumption of the activity
The 2021-2022 financial year is divided into two parts. First one, the health restrictions linked to the Covid-19 epidemic, and mainly the vaccination pass, until mid-March 2022, penalized the Group. The second, the total lifting of these allowed the Group to regain a very satisfactory dynamism.
The +81.8% increase in Gross Gaming Revenue (GGR) compared to the 2021 financial year is the direct consequence of the closure of the Group's establishments in France and abroad for just over half of 2021. And this, despite the departure from the scope of consolidation of the Ostend casino at the end of July 2021 (and correlatively of its very dynamic online gaming and related sports betting activities) and the sale of shares in the Crans-Montana casino on 31 January, 2022.
Thus, the GGR increased over the financial year to reach € 636.7 M, compared to € 350.2 M in 2021. It benefited from the growth in the GGR of slot machines (+122.6%) and the GGR of traditional games (+8.9%), the latter increasing in particular by +158.9% in France.
The Net Gaming Revenue (NGR) is generally on the rise reaching € 305.5 M.
At the same time, the turnover excluding NGR rose by € 44.9 M to € 86.1 M.
The consolidated 2022 turnover increased by +52.0% reaching € 388.8 M.
Ret urn to a good financial performance
The very good operational performance allows to generate an EBITDA (IFRS 16) of € 75.6 M over the period (compared to € 13.0 M in 2021) . The EBITDA margin on revenue was 19.4%, an improvement of 14.3 points compared to 2021.
The current operating income (COI) became positive again reaching € 23.1 M , thanks to the reopening of all the sites over the whole financial year, and mainly the casinos division.
Purchases & External expenses are down by € 9.1 M, impacted mainly by:
Taxes & duties increased from € 10.9 M in 2021 to € 17.3 M in 2022, i.e. + 58.7 % due to the resumption of the activity.
Employees expenses reached € 168.0 M, up by € 63.8 M (+61.2 %), i.e. a more normative level after two years of the business support measures put in place by the government in order to face the health crisis, in particular the use of the partial activity scheme from which the Group benefited. In addition, profit sharing paid to employees increased by +€ 4.1 M.
The change in amortization and depreciation of fixed assets, down -8.3% to € 51.5 M, reflects scope effects and the slowdown in the investment policy usually sustained in recent years, but hampered by the health crisis.
The item “Other current operating income and expenses” represents a net expense of € 6.9 M, compared to a net income of € 0.2 M over the previous financial year, additional "closure" aid amounting to € 4.9 M obtained from the government over the financial year in order to fight the consequences of the health crisis, being less than the "fixed cost aid" obtained in 2021 in the amount of € 10.0 M. In addition, expenses related to casino specifications are up (+€ 4.1 M in expenses), correlatively to the GGR. Conversely, we note a favorable trend in changes in provisions.
The non-current operating income is an income of + € 17.6 M compared to + € 0.9 M in 2021 which is explained by:
Consequently, the operating income reached € 40.7 M over the year compared to a loss of € 45.5 M in 2021.
Finally, Groupe Partouche makes a profit of € 37.1 M (of which € 34.2 M Group's share), compared to - € 55.9 M in 2021 after taking into consideration the following elements:
A solid financial structure
Balance sheet assets amounted to € 798.3 M, up € 2.0 M. The main variations are as follows:
On the liabilities side, the Group's equity, including minority interests, rose by € 38.6 M to € 354.0 M.
At 31 October 2022, the financial debt decreased by € 9.7 M, totalling € 277.7 M under the combined effects of the following elements:
Net financial debt amounted to € 46.3 M (down by € 40.7 M). The Group's financial structure is improving and becoming extremely sound again, with leverage ratios (Net debt / EBITDA) and gearing ratios (Net debt / Equity) respectively at 0.7x (compared to 2.3x in N-2 ) and 0.1x (against 0.3x a year earlier for the latter).
Confidence in the prospects
Continuation of the i nvestment programme on the existing establishments
After two years of the pandemic and the pause in investments, the Group is continuing to relaunch its program started in the previous financial year in order to enrich its offer and renovate its casinos network aiming at improving its performance, thus:
Bolstered by the results obtained since the lifting of health restrictions and thanks to the relevance of its innovative products offering strategy, Groupe Partouche is confident about its prospects. The Group is continuing the investment program aimed at strengthening the activity of its establishments while maintaining a healthy and solid financial situation.
Upcoming events:
- Turnover 1 quarter ( N ov . 20 2 2 - J an. 202 3 ) : Tuesday 14 March 2023 ( a fter stock market closure)
- General Meeting: Wednesday 22 March 2023
Groupe Partouche was established in 1973 and has grown to become one of the market leaders in Europe in its business sector. Listed on the stock exchange, it operates casinos, a gaming club, hotels, restaurants, spas and golf courses. The Group operates 41 casinos and employs nearly 3,900 people. It is well known for innovating and testing the games of tomorrow, which allows it to be confident about its future, while aiming to strengthen its leading position and continue to enhance its profitability. Groupe Partouche was floated on the stock exchange in 1995, and is listed on Euronext Paris, Compartment ISIN : FR0012612646 - Reuters PARP.PA - Bloomberg : PARP:FP Reuters : PARP.PA - Bloomberg : PARP:FP
Annex
1- Consolidated Income
2- Analysis of the current operating income by division .
For a better readability of its division performance, Groupe Partouche presents the division contribution before intra-group elimination (ELIM.).
The COI became positive again and reached € 29.8 M , up +€ 68.3 M, driven by the reopening of the Group's casinos. Activity in this division is on the rise with a change in turnover of € 114.5 M (+69.6%). All the operating expenses increased by +€ 76.2 M and notably include an increase in employees expenses (+€ 54.5 M, i.e. +64.3%) due to the end of the partial activity of most of the Group's employees which had prevailed during the closures of operations in the 2021 financial year. Conversely, amortization and depreciation of fixed assets fell by € 5.4 M, reflecting the slowdown of the renovation program for the casino network in the previous years, due to the health crisis.
T he hotel sector's COI , which became positive again , benefited on the one hand from the recovery of activity linked to the end of the restrictions introduced to deal with the Covid health crisis and on the other hand from a favourable effect linked to the restructuring of certain divisions, and thus increased by +€ 2.5 M to reach €0.3M.
Finally, the COI of the “Other” sector is deteriorating; it totals -€ 6.9 M over the financial year, compared to -5.6M for the previous year. Note in particular the impact of the removal from the scope of the restaurant Le Laurent (+€ 2.0 M) and sports betting in Belgium (-€ 2.5 M).
3- Summary of net debt
(*) The gross deb includes bank borrowings, bond loans and restated leases, accrued interest, miscellaneous loans and financial debts, bank loans and financial instruments.
(**) The consolidated EBITDA used to determine the “leverage” is calculated over a rolling 12-months period, according to the old IAS 17 standard (that is to say before application of IFRS 16), at namely € 63.9 M at 31/10/2022 .
( * **) The bond and banking partners waived the calculation of the "leverage ratio" expected at the closing date of 31 October 2021 due to a negative EBITDA over the period.
4- Glossary
The "Gross Gaming Revenue" corresponds to the sum of the various operated games, after deduction of the payment of the winnings to the players. This amount is debited of the "levies" (i.e. tax to the State, the city halls, CSG, CRDS).
The «Gross Gaming Revenue» after deduction of the levies, becomes the "Net Gaming Revenue ", a component of the turnover.
Turnover excluding NGR, includes all non-gaming activities i.e. catering, hotels, shows ticketing, spas, etc.
“Current Operating Income” COI includes all the expenses and income directly related to the Group's activities to the extent that these elements are recurrent, usual in the operating cycle or that they result from specific events or decisions pertaining to the Group's activities.
The "Non-Current Operating Income" (NCOI) includes all non-current and unusual events of the operating cycle: it therefore includes the depreciation of fixed assets (Impairments), the result from the sale of consolidated investments, the result from the sale of asset, other miscellaneous non-current operating income and expenses not related to the usual operating cycle.
Consolidated EBITDA is made up of the balance of income and expenses of the current operating income, excluding depreciation (allocations and reversals) and provisions (allocations and reversals) linked to the Group' business activity included in the current operating income but excluded from Ebitda due to their non-recurring nature.
1 For the record, given the consequences of the health crisis on the Group's activity and the income of the previous financial year, the calculation of the leverage ratio as of 31 October 2021, like that of 30 April 2021, had not been possible due to a negative EBITDA. However, the Group's banking partners, as well as the institutional investor bearing the EuroPP , had renewed their confidence in it and had waived each of the calculations of the leverage ratio and the delivery of each of the certificates corresponding to the calculations of the leverage ratio on the dates above.
Attachment
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