CNMC approves the sale of Sportium to CIRSA. The National Markets and Competition Commission (CNMC) has approved the acquisition of 50% of Sportium Apuestas Deportivas from CIRSA. In this way, and thanks to this acquisition, CIRSA, the largest casino operator in Spanish territory, has exclusive control of this company.
CNMC approves the sale of Sportium to CIRSA
The pre-sale agreement was closed in early summer, when Ladbrokes Betting & Gaming Limited, a company that is part of GVC Holding, sold 50% of Sportium Apuestas Deportivas. Thanks to this acquisition, CIRSA embarks on a new line of business and strategy within the Spanish retail betting market. It is estimated that this purchase transaction has been closed for about 70 million euros.
The CEO of GVC Holding, Kenneth Alexander, affirms that “the sale of our stake in Sportium allows us to simplify our business in the domestic market. We want to highlight the excellent partner relationship that we have maintained with CIRSA and we are happy to continue our relationship as industrial suppliers. ”Although CIRSA has made the purchase effective, Sportium will continue to maintain links as a B2B supplier.
The acquisition of Sportium was announced shortly after CIRSA reported a loss of almost 6 million net during the first three months of 2019. This loss of net income contrasts with the benefits that the Spanish and Latin American markets have granted to the company
The most profitable market for CIRSA is Spain, contributing 43.7% of EBITDA. Followed by Panama with 20.6%, Colombia with 13.9%, Mexico with 10% and Italy with 3.9%. EBITDA (Earnings before interest, taxes, depreciation, and amortization) is a financial indicator that determines the gross operating profit calculated before the deductibility of financial expenses.
The company owned by the president and CEO of the CIRSA Group, Joaquím Agut, has increased its operating income by 7.8% compared to the previous year, being 761.8 million euros. In relation to the EBITDA indicator, it improved by 8.2%, reaching 214.7 million euros.
Sportium, leader in distribution network in Spain
SportiumIt was created in 2007 and currently has some 3,000 points of sale in Spain. It is the largest distribution network in Spanish territory. Almost a decade later, in 2016 Sportium made the leap to Latin America. Colombia was the country chosen to enter the American market. In 2018, Sportium Sports Betting contributed 2.79 million euros to the annual results of GVC Holdings