Turismo
GROUPE PARTOUCHE: Income 1st half year 2020/2021 - Operating performance impacted by the health issue
Paris, 30 June 2021, 06:00 p.m.
During the meeting it held on the 29 of June 2021 and after having reviewed the management report of Groupe Partouche Executive Board, the Supervisory Board examined the audited accounts for the 1 half-year 2020-2021 (November to April).
The Covid 19 pandemic penalized the business activity during the first half of the current financial year by the interruption of the Group's activities over the period, with the exception of the following reopening:
The Gross Gaming Revenue (GGR) over the period decreased by -80.9% compared to the previous year, reaching € 50.0 M and the turnover by -74.3% at € 47.2 M.
The Group's EBITDA fell to -€ 42.0 M, compared to +€ 29.8 M in the first half of 2020.
The current operating income (COI) stood at -€ 73.2 M compared to +€ 0.3 M for the previous year, a degradation directly correlated with the interruption of the activity and therefore of the turnover.
Under activity divisions, the casinos' COI reached -€ 68.2 M, compared to +€ 6.6 M in 2020 impacted by the closing of all the Group's casinos over the period, with the exception of the Ostend casino COI with an increase of € 1.1 M thanks to the online COI.
The COI of the hotels' division slightly decreased to -€ 2.2 M compared to -€ 1.7 M in 2020. The Aquabella hotel at Aix-en-Provence remained open over the whole period with an idling activity while the Cosmos hotel at Contrexéville remained closed.
Lastly, the deficit of COI of the “Other” division improved at -€ 2.8 M on the 1 half-year 2021, compared to -€ 4.7 M in 2020, mainly due to the significant increase of COI of Belgian sports betting (+€ 1,0 M).
Purchases & external expenses decreased by € 7.4 M (-10.9%) mainly impacted by:
Within the above development, the increase of +€ 2.0 M in purchases and external expenses relating to the “online casino” in Switzerland, which started on 16 November 2020, should be noted.
Personnel expenses amounted to € 31.5 M, down € 42.0 M (-57.2%) following in particular the allowances received for partial unemployment from which the Group benefits, to which are added the employer's contributions savings generated as well as the exemptions / subsidiaries obtained as part of the business assistance measures put in place by the Government in response to the health crisis.
The non-current operating income is a net expense of -€ 8.6 M, compared to -€ 2.7 M in 1 half-year 2020. In Belgium, an old dispute was won against the Belgian State leading to a non-current profit of € 5.8 M. Conversely, the continuation of the health crisis led the Group to carry out goodwill additional impairment tests from the half-yearly closing. Thus, goodwill impairment in the first half of 2021 totalled -€ 15.0 M.
In the end, the net income is a loss of € 88.0 M, compared to a loss of € 3.9 M as of 30 April 2020, after taking into account the following elements:
The Group's financial structure remains healthy and solid with “cash net of levies” of € 104.1 M, shareholders' equity of € 283.2 M and a “net debt” of € 149.7 M (set up as provided by the terms of the syndicated loan agreement, according to the former IAS 17 standard, excluding IFRS 16).
Given the consequences of the health crisis on the Group's business and the results for the half-year, the calculation of the leverage ratio at 30 April 2021 was impossible due to a negative EBIDTA. However, the Group's financial partners have renewed their confidence in it.
Thus, the Syndicated Loan Agent, on 9 June 2021, signed a letter on behalf of the Lenders in which the later waives:
Likewise, on 15 June 2021, the institutional investor carrying EuroPP waived the same ratio calculations and the delivery of certificates.
All of the casinos in the Group have reopened:
Overall, gaming activities have picked up in a very satisfying trend.
- 3rd quarter financial information: Wednesday 15th September 2021, after Paris stock market close
- Turnover 4th quarter: Wednesday 15th December 2021, after Paris stock market close
Groupe Partouche Phone : 01.47.64.33.45 – Fax : 01.47.64.19.20
Valérie Fort, Chief Financial Officer Info-finance@partouche.com
Taxes and duties represent an expense of € 5.6 M down by –35.6%.
The change in amortization and depreciation on fixed assets, down -1.82% to € 28.5 M, reflects the slowdown in the sustained investment policy of recent years, hampered by the health crisis.
Other current operating income and expenses represent a net income of € 5.9 M compared to a net expense of € 4.0M in the first half of 2020. This is mainly due to operating grants received or receivable obtained as part of the business subsidiaries measures put in place by the Government in the face of the health crisis, in particular the fixed costs subsidiaries for € 10.0 M.
The operating income stands at -€ 81.8 M against -€ 2.4 M in the first half of 2020.
Income before tax represents a loss of € 84.0 M compared to a loss of € 3.3 M in the first half of 2020.
The tax expense (including CVAE) reached € 4.0 M, compared with € 0.6 M in the first half of 2020. The exceptional income recorded in Belgium following a dispute amounts to a tax of € 1.3 M. Conversely, CVAE's tax charge decreased due to the shutdown of the Group's activity over the half-year. With regard to deferred taxes, the Group has adopted the cautious position of not activating, even partially, the tax losses related to tax consolidation generated over the half-year (against a deferred tax asset of +€ 1.8 M during the 1 half-year 2020).
The quota-share of earnings of equity-accounted associate remained stable and non-material.
The consolidated net Income over the half-year is a loss of € 88.0 M against a loss of € 3.9 M at 30 April 2020, of which the Group share represents a loss of € 81.6 M compared to a loss of € 5.3 M at 30 April 2020.
Total net assets at 30 April 2021 decreased, totalling € 753.7 M against € 787.7 M at 31 October 2020. The remarkable developments during the period under review are as follows:
On the liabilities side, shareholders' equity including minority interests fell from € 371.9 M as of 31 October 2020 to € 283.2 M as of 30 April 2021, weighed down by the net result for the half-year. Financial debt increased by €53.7M. Consideration should be given to:
In addition, it should be noted that, due to the negative EBIDTA induced by the closure of the Group's establishments over the half-year, the institutional investor carrying the EuroPP as well as all the banks making up the banking pool of the syndicated loan have given up the calculation of the leverage ratio provided for on the closing date of 30 April 2021. This with a retroactive effect from 30 April 30, 2021. However, the waiver having taken place after the closing, the application of IAS 1 has forced the Group to restate all of the outstanding amounts relating to the bond loan and the syndicated loan as a current share this half-year.
One can consider the Group's financial structure using the following table (set up as provided by the terms of the syndicated loan contract, according to the old IAS 17 standard, excluding IFRS 16):
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.
“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.
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 the Group' business activity included in the current operating income but excluded from Ebitda due to their non-recurring nature.
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