CIRSA expands its strategic reach into emerging markets

(AsiaGameHub) –   Grupo CIRSA continues to present a “unique and attractive story” to global markets as the gambling PLC seeks fresh avenues for organic growth, profitability, and a robust balance sheet.

Ten months after its debut on the Bolsa Madrid Exchange, CIRSA has reported record-breaking first-quarter results, reinforcing investor confidence that it stands out among European gambling PLCs.

Supported by Blackstone, the gambling firm recorded a Q1 net profit of €44.6m, a 59% increase from the previous year. It also achieved record quarterly revenues of €623m and an EBITDA of €193.9m, with leadership highlighting “71 consecutive quarters of growth” (excluding the COVID-19 era).

With record earnings, reduced financing expenses, and a swiftly improving debt profile, management is increasingly confident that “CIRSA has reached a new platform of growth and dominance in its operating markets”. 

Debt Reduction

However, perhaps the most crucial development of 2026 lies beneath the top-line numbers: leadership has slashed net debt to roughly €2bn. This includes a strategic €500m reduction in Q1, granting management the ‘economic flexibility’ required to chase expansion prospects.

Antonio Hostench, CEO of CIRSA, stated that the group is actively evaluating new strategic opportunities in both mature and emerging markets: “There might be some temporary increase, but we would quickly return to levels of 2.5 times EBITDA or lower.

Hostench noted that CIRSA is considering “complementary acquisitions in Latin America, Spain, Italy and Morocco,” while also “exploring new geographies” throughout Western Europe and the Americas through both digital and land-based gambling channels.

The CEO also emphasized his belief that the opportunities “already identified by management could begin materialising during 2026”.

For the leadership team, the strategy seems clear: prioritize debt reduction, then followed by accelerated growth.

This bolstered financial stance arrives as Chairman Joaquim Agut ramps up efforts to persuade the market that CIRSA remains Europe’s most undervalued gambling PLC—a sentiment reiterated consistently since the beginning of 2026 trading.

Agut: CIRSA undervalued among PLCs 

“CIRSA is severely undervalued,” Agut remarked to shareholders during the company’s inaugural AGM earlier this year. 

The Chairman contended that wider market sentiment toward listed gambling firms has created a gap between share prices and actual operational performance.

“The company’s stock market performance does not reflect its operational reality,” Agut asserted, suggesting that sector-wide market pressures—rather than CIRSA’s own execution—are the primary factors weighing on its valuation.

Although CIRSA has solidified its status as Spain’s largest gambling operator and reported an FY2025 EBITDA of €736m, its shares have mostly traded between €13 and €14 since listing, falling short of the company’s €15 IPO price.

Agut specifically cited the emergence of prediction betting products in the US and higher gambling taxes in key European markets, including the UK, as factors that have broadly exerted significant pressure on listed gambling stocks. 

“The IPO allowed the company to reduce its financial burden while maintaining a high level of investment to support growth, alongside lower debt and the continuation of a strong shareholder return policy,” Agut concluded.

On the operational front, CIRSA maintains that it continues to surpass its competitors. Retail casinos, slots, and arcades remain the group’s primary earnings drivers, significantly outperforming online gaming revenues and offering stability against the market volatility seen in South American jurisdictions 

Together with decreased financing costs and better leverage metrics, management is convinced that CIRSA is entering the second half of 2026 from a position of strength.

Blackstone’s Actions

Focus will inevitably shift to majority shareholder Blackstone, which still holds roughly 75% of CIRSA’s equity. Spanish investors are keen to know if the private equity giant plans to gradually reduce its majority stake.

For dealmakers, interest is centered on CIRSA’s primary Spanish rival, Codere SA, as investors aim to sell the company with a target valuation of €2bn. A potential sale of Codere could pave the way for CIRSA’s next M&A move, either domestically in Spain or internationally. 

Analysts in Madrid have proposed that CIRSA might initiate a deal to grow its footprint in Italy’s new online gambling landscape or pursue further M&A in South American markets like Brazil or Chile, depending on regulatory developments in 2026.  

Spanish licensees are gearing up for heightened compliance requirements under the DGOJ’s watch, as policymakers bolster consumer protections and mandatory duty-of-care protocols.

However, unlike several other major European jurisdictions, Spain has held off on introducing extra gambling taxes … for the time being. 

Amid tighter regulations, investor wariness, and sector volatility, CIRSA is striving to distinguish itself from European PLC peers as its debt declines, profits climb, and appetite for M&A returns to the forefront.