(Boursier.com) — The supervisory board of Partouche Group meeting today examined the annual consolidated accounts for the past financial year (ending on October 31, 2023) currently being audited, after having read the management report of the Partouche Group management board.
The Gross Games Product (GVP) recorded strong growth over the financial year and reached 701.5 ME, compared to 636.7 ME in 2022 (+10.2%), a year which was still penalized by health restrictions until mid-March 2022. This good performance is fueled by the growth in the GGR of slot machines (+7.6%), the GGR of electronic forms of traditional games in France (+20.3%) and online games in Switzerland (+41.6%).
The Net Gaming Product (NPG) increased to €332.9 million over the whole year by +9.0%, benefiting in its first part from a favorable base effect.
Turnover excluding PNJ increased by +9.6% to €94.3 million.
In total, the Group’s 2023 consolidated turnover increased by +9% to €423.8 million.
EBITDA appears generally stable at 76.1 ME (compared to 75.6 ME a year earlier) and represents 18% of turnover. However, restated for additional “closure” aid received in the previous financial year in the amount of €4.9 million, 2023 EBITDA increased by +5.4 million, demonstrating a significant improvement in operational performance.
Current operating income (ROC) increased to 27.4 ME (+18.3%), thanks to the return to normal activity over the entire financial year, and mainly under the influence of the sector casino operator.
Purchases and external charges increased by +20.6 ME (+16.9%), mainly impacted by:
purchases of materials up by +7.4 ME (+19.5%) coming both from the surge in energy prices of +4.8 ME (+43.1%) and from the increase in purchases of solids and liquids for +2 ME (+11.5%) reflecting the dynamics of the activity;
advertising/marketing costs and fees increasing respectively by +8 ME (+38.2%) and +2 ME (+9.9%) in direct link with the return to normal of activity and operations marketing for the 50th anniversary of the Partouche Group (in particular through the free allocation of “promo credits” for games, an increase of +4.7 million);
in the opposite direction, the Meyrin casino, whose concession renewal was obtained for a period of 20 years until 2045, has reduced advertising expenses and communication fees linked to its online activity (-0.8 ME , or -9%).
Taxes are decreasing, going from 17.3 ME in 2022 to 16.9 ME in 2023, or -2.1%.
Personnel costs amounted to €177.2 million, an increase of +9.3 million (+5.5%) due in particular to the effects of the change in the minimum wage on January 1 and May 1, 2023 and the revaluation salary scales for the 2023 financial year, and the end of the use of the partial activity regime from which the Group benefited from the previous financial year.
The change in depreciation and amortization on fixed assets, down -4.9% to €48.9 million, reflects the various ends of depreciation cycles as well as the limitation of renewal investments during the health crisis.
Other current operating income and expenses represent a net charge of -10.8 ME, compared to -6.9 ME for the previous financial year, the Group no longer benefiting from additional “closure” aid in the amount of 4.9 ME , obtained from the government over the previous financial year in order to combat the consequences of the health crisis.
Furthermore, the charges attached to the casino specifications are increasing (+0.5 ME), correlatively to the GRP. Conversely, we will note a favorable development in variations in provisions.
The 2023 operating profit amounts to 27.4 ME, after taking into account a non-current operating profit (RONC) almost zero this year (+0.04 ME). It compares to a 2022 operating profit of 40.7 ME which took into account a RONC of +17.6 ME, mainly composed of a result on the sale of consolidated participations of +14.1 ME linked to the sale of the 57% stake held in the Crans-Montana casino.
The financial result amounts to -2.9 ME (compared to -2.3 ME in 2021). The increase is mainly explained by that of financial charges linked to IFRS 16 rental debts (1.2 ME, including 0.8 ME for the Middelkerke casino alone. Furthermore, in the context of rising interest rates, the group’s average annual debt cost increases slightly (+1.2 ME) despite the further reduction in the Group’s gross debt. This increase is, however, largely offset by investment income which increases by +1.4 ME .
The tax charge (CVAE included) is generally stable (-1.1 ME, compared to -1.2 ME in 2022).
Ultimately, Groupe Partouche generated a profit of €23.4 million (including €18.9 million from the Group), compared to €37.1 million in 2022.
Healthy and solid financial structure
On the assets side of the consolidated balance sheet, we note an increase in non-current assets of +20.5 ME.
On the liabilities side, the Group’s equity, including minority interests, increased by +12.8 ME and stood at 366.9 ME after profit for the year of 18.9 ME (Group share).
Financial debt decreases by -8.4 ME (current and non-current portion) after taking into account:
the settlement of the four quarterly installments of the syndicated loan in the amount of -10.8 ME;
the repayment of other bank loans for -17.2 ME;
the establishment of new credits for +21.5 ME;
and the net impact of the treatment of lease contracts according to IFRS 16 for -1.2 ME (notably an increase, the subscriptions of new real estate contracts found in an increase in non-current assets, and a decrease in the payment of due dates of exercise).
The net financial debt stands at 53.9 ME, up 7.6 ME.
The Group’s financial structure remains healthy with leverage ratios (Net debt / EBITDA) and gearing ratios (Net debt / Equity) at 0.8x and 0.1x respectively (compared to 0.7x and 0.1x in 2022).
Outlook
Middelkerke (Belgium)
Since the signing of the partnership between Groupe Partouche and Betsson last June, the Middelkerke casino has obtained the necessary license allowing it to offer an attractive online casino games offer since the end of January 2024, adapted to the Belgian regulated market.
Furthermore, at the end of March 2024, the Middelkerke casino will be transferred to the seafront, a privileged location, while it was temporarily operated in an outlying hotel since its entry into the Group in July 2022.
Dividend for the 2022/2023 financial year
After the resumption of the distribution policy last year, Groupe Partouche plans to distribute a dividend again for the 2022/2023 financial year, the amount and payment terms of which will be specified soon in order to be submitted to a vote shareholders at the General Meeting on March 20.
Continued investments in the existing fleet
Constantly aiming for excellence in the customer experience in its establishments, the Group continues to enrich its offering and renovate its casino fleet to improve its performance, as well as:
The Le Lyon Vert casino in La Tour-de-Salvagny is undergoing a major restructuring of the existing spaces with the creation of a major extension on two levels (ground floor and 1st floor). The project should end in May 2024;
extensive work continues at the Annemasse casino. The left wing and a first outdoor smoking room were opened at the end of December 2023 and the second phase of work, which will be completed in the summer of 2024, will notably make it possible to create an extension to the front and a second outdoor room;
the Divonne casino is undergoing a total renovation to regain its initial grandeur, which should be completed in September 2024;
the Contrexéville casino will benefit from a reorganization: the main games room will be moved under the theater decor and the restaurant will also be positioned on the park side with the creation of an adjoining kitchen. Initiated in November 2023, the project should be completed in December 2024;
The Vichy casino is undergoing a complete renovation which aims to increase the gaming areas, modernize and enhance the services offered by this emblematic establishment. Delivery is scheduled for June 2025;
other establishment redevelopments will be initiated in the 2024 financial year, in particular for the Saint-Amand-les-Eaux casino.
Next meetings:
– Turnover for the first quarter (Nov. 2023-Jan. 2024): Tuesday March 12, 2024 (after trading)
– General Meeting: Wednesday March 20, 2024