Solid Half-Year Income & Financial Structure
in a resumption period of significant growth investments

• Turnover: 220.6 €M (+2.3 %)
• EBITDA: 41.0 €M compared to 42.7 €M at 1^st Half-year 2023
• Net Income: 7.1 €M compared to 18.8 €M at 1^st Half-year 2023
• Healthy financial situation: gearing of 0.2x and leverage of 1.3x

Paris, 25^th June 2024, 06:00 p.m. – During its meeting held on the 25^th June 2024 and after having reviewed the management report of Groupe Partouche Executive Board, the Supervisory Board examined the audited accounts of the 1^st half-year 2023-2024 (November 2023 to April 2024).

Strong Business Momentum and Growth Investment in Casinos

The strong business momentum in the half-year was reflected in a Gross Gaming Revenue (GGR) increase of +1.7% to €346.9 million and a revenue increase of +2.3% to €220.6 million.

The Group’s EBITDA decreased by – 4.0% at € 41.0 M (i.e. 18.6% of turnover) compared to € 42.7 M (19.8% of turnover) in the first half of 2023.

The Group’s Current Operational Income (COI) reached € 15.5 M compared to € 19.3 M in the first half of 2023. This decrease materializes in the three business sectors (casinos, hotels and others):

Advertisement

• The casinos COI at € 24.3 M (compared to € 27.0 M in the first half of 2023) is penalized by operating difficulties encountered by the numerous establishments undergoing renovation in Vichy, La Tour-de-Salvagny, Saint Amand-les-Eaux, Divonne and Casino 314 (Cannes). Furthermore, the Middelkerke casino in Belgium, which relocated to the seafront at the end of March 2024, is penalized by its heavy development works;
• Conversely, the COI of online gaming in Meyrin (Switzerland) and Middelkerke (Belgium), launched since 29^th January 2024, both increased by + € 0.7 M and + € 0.4 M respectively;
• The COI of the hotels is a loss of – € 2.7 M in H1 2024 compared to – € 2.3 M in H1 2023, as well as that of the “Other” sector at – € 6.2 M compared to – € 5.4 M.

Purchases and external expenses at € 72.6 M increased by € 2.0 M (+2.8%), with particularly:

• an increase in advertising/marketing expenses of € 0.8 M (+5.4%) relating to the operations of Groupe Partouche 50th anniversary, between March and December 2023, and to a more offensive digital marketing in Meyrin (Switzerland) linked to its online activity;
• an increase in subcontracting expenses of € 0.8 M (+14.3%) due to the rise in cleaning and security expenses (+ € 0.5 M) and other expenses and;
• conversely, purchases of materials fell by -3.7%, mainly due to the reduction in energy expenditure amounting to € 0.7 M (-8.1%) as a result of falling prices.

Employees’ expenses reached € 90.6 M, up by € 3.2 M, mainly due to an increase in the minimum wage (SMIC) as at 1^st January 2024, and new conventional grids applicable from 1^st April 2024.

Net Income amounted to € 7.1 M, compared to € 18.8 M on 30^th April 2023, taking into account the following items:

• a non-current operating income of – € 1.0 M compared to a profit of € 0.7 M at 30^th April 2023, resulting from the progress margin on the property development contract in La Grande Motte and from the disposal of two real estate assets in Contrexéville. Other non-current income and expenses mainly include accelerated depreciation carried out as part of the development work on La Plage 3.14 for € 0.7 M and the Casino 3.14 for € 0.2 M, as well as renovation work at the La Tour-de-Salvagny casino for € 0.1 M;
• a financial income of – € 1.0 M (compared to – € 1.5 M in H1 2023). The cost of financial debt is up as it follows the increase in the Group’s gross debt as well as the average annual interest rate given the macroeconomic situation. However, this increase in financial costs is largely offset by investment income which increased by € 1.5 M. In addition, financial expenses related to IFRS 16 lease liabilities increased by € 0.5 M;
• A tax expense (CVAE included) of € 6.1 M compared to a tax revenue + € 0.3 M in H1 2023due to the activation of the balance of the Group’s carry forward tax losses generating differed tax income of € 3.6 M, while in H1 2024, a consumption of differed tax of – € 2.7 M was observed.

With a cash flow net of levies of € 89.8 M, equity of € 367.3 and net debt of € 81.2 M (constructed in accordance with the terms of the syndicated loan contract, according to the former IAS 17 standards, excluding IFRS 16), the Group’s financial structure is sound and robust, enabling it to continue its growth investment program.

The 1^st half-year financial report as of 30^th April 2024 is available today on the Group’s website www.groupepartouche.com in the Finance section.

Upcoming events:

– 3^rd quarter financial information: Tuesday 10^th September 2024, after stock market closure

– 4^th quarter turnover: Tuesday 10^th December 2024, after stock market closure

Advertisement

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 B. ISIN: FR0012612646 – Reuters PARP.PA – Bloomberg: PARP:FP

FINANCIAL INFORMATION

Groupe Partouche        Phone : 01.47.64.33.45
Valérie Fort, Financial Chief Officer        [email protected]

Annex

Consolidated income

Advertisement

(*) considering the application of IFRS 16 which has the automatic effect of improving EBITDA by € 7.6 M in H1 2024 and by € 6.9 M in H1 2023.

Taxes and Duties represent an expense of € 10.2 M compared to € 9.6 M in the first half of 2023.

The increase in depreciation and amortization on fixed assets, up +3.0% to € 25.2 M, reflects the resumption of a robust investment program in the Group’s establishments.

Other current operating income and expenses represent a net expense of – € 6.5 M compared to – € 4.2 M in the first half of 2023. This development is explained in particular by the provision relating to the multisite jackpot, which has not been won since March 2023.

Advertisement

Operating income stands at € 14.5 M compared to € 20.0 M in HY 2023 and income before tax at €13.4 M compared to € 18.6 M in HY 2023.

The consolidated net income for the half-year is a profit of € 7.1 M compared to € 18.8 M as at 30^th April 2023, of which the Group’s share is a profit of € 5.1 M compared to € 16.7 M on 30^th of April 2023.

Balance Sheet

Total net assets as of 30^th April 2024 represent € 825.3 M compared to € 804.3 M as of 31^st October 2023. The noteworthy changes over the period are as follows:

• an increase in non-current assets of € 33.6 M mainly due, to the net increase in property, plant and equipment of € 31.7 M, essentially made up of the rental management contract of the Cannes 3.14 Casino (€ 6.5 M) retreated according to IFRS 16 in respect to its moving set-up for coming autumn, within the premises of the Palm Beach and to the volume of the current investments in the casinos of La Tour-de-Salvagny (€ 6.3M), Middelkerke (€ 5.8 M), Divonne (€ 3.8 M), 3.14 Cannes (€ 2.7 M), Vichy (€ 1.1 M), Annemasse (€ 1.1 M), St Amand-les-Eaux (€ 1.0 M) and Contrexéville (€ 0.8M) as well as the Plage 314 (beach) (€ 1.0 M);
• a decrease in current assets of € 12.6 M, mainly due to consumption of cash of € 27.5 M offset by an increase in the item “customers and other debtors” of € 14.0 M.

On the liabilities side, shareholders’ equity, including minority interests, went from € 366.9 M at 31^st October 2023 to € 367.3 M at 30^th April 2024, including a profit for the period of € 5.1 M for the Group share and € 2.0 M for minority interests.

The financial debt at 30^th April 2024, increased by € 11.8 M (current & non-current shares) compared to 31^st October 2023, taking into account:

Advertisement

• The 2 quarterly deadlines of the syndicated loan paid on 31^st January 2024 and 30^th April 2024 for an aggregated amount of – € 5.4 M, as well as other banking debts for € 9.1 M;
• The setting up of new bank loans for + € 18.2 M;
• as well as flows related to leases treated according to IFRS 16.

Financial structure – Summary of net debt

The Group’s financial structure can be assessed using the following table (constructed in accordance with the terms of the syndicated loan agreement, based on the former IAS 17 standards, excluding IFRS 16).

(*) 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 € 61.9 M at 30/04/2024, € 64.3 M at 31/10/2023 and € 72.4 M at 30/04/2023.

Glossary

The “Gross Gaming Revenue” corresponds to the sum of the various games operated, after deduction of the payment of the winnings to the players. This amount is debited by the “levies” (i.e. tax to the State, the city halls, CSG, CRDS).

Advertisement

The «Gross Gaming Revenue» becomes the “Net Gaming Revenue” after levies, which is a component of the turnover.

“Current Operating Income” (COI) includes all expenses and income directly related to the Group’s activities to the extent that these elements are recurrent, usual within the operating cycle or that they result from specific events or decisions pertaining to the Group’s activities.

“Consolidated EBITDA” (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) related to the Group’ business activity included in the current operating income but excluded from Ebitda due to their non-recurring nature.

Attachment

• Half-year results H1 2024

Advertisement

1^st half-year 2024 revenue in growth by 2.3 % at € 220.6 M
Dynamic activities, new partnerships
and reopening of two iconic casinos

Paris, 11^th June 2024, 06:00 p.m. – Groupe Partouche, a European leader in gaming, publishes today its consolidated turnover for the 2^nd quarter 2024 (February 2024 – April 2024) as well as its consolidated turnover for the first half-year (November 2023 – April 2024).

Revenue for the first half of 2024 up by 2.3% to €220.6 Million

The activity for the first half of 2024 shows a solid growth dynamic: a 2.3% increase in cumulative six-month revenue, reaching € 220.6 M compared to € 215.6 M in H1 2023, and a 2.1 % increase in Net Gaming Revenue to € 179.7 M (compared to € 176,0 M in H1 2023).

Thus, the positive revenue trend recorded in the first quarter (+2.0 %) is confirmed with a 2.6 % increase in revenue for the second quarter of 2024, reaching € 101.9 M compared to € 99.2 M in Q2 2023.

Advertisement

In detail, the Gross Gaming Revenue (GGR) for the second quarter increases by 2.7 % to € 173.7 M (compared to € 169.1 M in Q2 2023):

• The GGR growth in France (89 % of Group GGR) stands at +1.7 % to € 154.8 M compared to Q2 2023, driven by a 2.5 % increase in slot machine GGR to € 124.6 M (80 % of France GGR). The GGR from table games, both electronic and non-electronic, decreases by 1.4 % to € 30.2 M;
• Abroad, the GGR increases by 11.5 % compared to Q2 2023, reaching € 18.9 M, thanks to the continuous rise of Swiss online gaming (+48.9 %). The Middelkerke casino also performs well (+31.7 % vs. Q2 2023).

After deductions, the Net Gaming Revenue (NGR) increases by 2.8 % to € 81.5 M, compared to € 79.3 M in Q2 2023. Non-gaming activities generates a revenue of € 21.1 M (+0.7%), mainly due to the regained dynamism of Hotels (+14.2 %).

Developments: New Partnerships and Reopening of Two Iconic Casinos

Partnership with the Starred Chef Michel Sarran

This collaboration with the starred chef Michel Sarran aims to enhance culinary excellence and the customer experience within the Group’s establishments. Michel Sarran will bring his expertise to broaden the culinary horizons of the experiences offered to the Group’s customers, from finger food to the menus of the establishments. Our teams will have the opportunity to enrich their experience through training provided by Michel Sarran, who will also support major events in the Group’s calendar.

Partnership with Palm Beach Exploitations in Cannes

Advertisement

Groupe Partouche announces the sale of 40% of Cannes Centre Croisette, which operates the 3.14 casino, to Palm Beach Exploitations. The latter will reinvest in Palm Beach over the summer of 2024, following extensive renovations by Palm Beach Exploitations, transforming it into a luxurious beachfront leisure complex reminiscent of its original spirit. Through this association, Groupe Partouche aims to benefit from the affluent clientele that will frequent this iconic venue. The renovation costs, borne by Cannes Centre Croisette, amount to € 5.6 M.

Opening of Copal Beach in Cannes

The partnership with Financière Must, led by Julien Manival (see press release of March 12, 2024), culminates today with the opening of Copal Beach (previously La Plage 3.14) in Cannes on the Croisette, featuring a South American concept and cuisine by Colombian chef Juan Arbelaez.

Opening of the New Pasino Grand-La Tour Salvagny

After two years of renovations amounting to approximately € 21.0 M, the Lyon Vert casino has been transformed into the Pasino Grand-La Tour Salvagny, joining the prestigious major establishments of the group. This transformation marks a new era for the casino, offering visitors an even more immersive and entertaining gaming experience. With a remarkable increase in gaming space from 1,600 m² to nearly 4,000 m², the Pasino Grand-La Tour Salvagny will offer an exceptional variety of games. This modernization also includes the integration of the latest technologies, ensuring an innovative experience for players. Culinary surprises await guests with a high-quality and surprising bistronomic offering.

Advertisement

Partial Reopening of the Annemasse Casino

Since October 2022, extensive renovations amounting to € 8.1 M have been underway to restore the casino, established in 1995, to its former glory. The first phase of this major renovation was completed in January 2024, with the official reopening of the entrance via its rotunda and the left wing of the establishment, which houses the slot machines and a smoking terrace at the end of the wing. The dining and bar areas have also been completely renovated. The restaurant is located behind the indoor bar and opens onto the outside, with a panoramic terrace overlooking the banks of the Arve.

Sustainable Development: Obtaining Two CSR Labels

Groupe Partouche has been awarded the “Progression” level of the RSE label and the Responsibility Europe label by AFNOR Certification. These two internationally recognized labels reward the commitment and demonstrate the maturity and performance of our CSR approach, as well as the integration of the Sustainable Development Goals (SDGs) and the recommendations of the ISO 26000 reference standard.

Upcoming events:

Advertisement

Income 1^st quarter: Tuesday 25^th June 2024, after stock market closure

Financial information 3^rd quarter: Tuesday 10^th September 2024, after stock market closure

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 B. ISIN : FR0012612646 – Reuters PARP.PA – Bloomberg : PARP:FP

ANNEX

1- Consolidated turnover

Advertisement

2- Construction of the consolidated turnover

2.1 – 2^nd quarter

2.2 – Aggregate 6 months

3- Breakdown of consolidated turnover by activity

3.1 – 2^nd quarter

Advertisement

3.2 – Aggregate 6 months

* The hotel Pavillon de la Rotonde at La-Tour-de-Salvagny has been included in the Hotels activity since 1^st November 2023 (against casinos previously)

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.

Advertisement

Attachment

• Turnover – Q2 2024

Turnover 1st quarter 2024: +2.0%
Good dynamics of the activities

General Meeting of 20^th March
Proposed distribution of a dividend of 0.32 €/share

Paris, 12^th March 2024, 06:00 p.m. Groupe Partouche European leader in gaming, published this day its consolidated turnover for the 1^st quarter of fiscal year 2024 (November 2023 to January 2024).

Good dynamics of the turnover for the 1^st quarter 2024

The Gross Gaming Revenue (GGR) totals € 173.2M for the 1^st quarter 2024 compared to € 171.9M a year earlier, up by +0.7%.

Advertisement

In France, the GGR for 1^st quarter 2024 remains stable at € 153.8M. The performance of the different forms of games is contrasted. Thus, the GGR of slot machines increases by +1.4% (to € 121.2M, i.e. 79% of the GGR in France), while that of table games, electronic and non-electronic, decreases by -5.2% (at € 32.5M).

Abroad, the GGR increases by +7.3% compared to 1^st quarter 2023, at € 19.4M. The GGR of online Swiss games continues its progress (+52.8% for the year) while that of the slot machines decreases by -7.5%.

Globally, after levies, the Net Gaming Revenue (NGR) increases by +1.4% at € 98.1M during the 1^st quarter 2024.

The turnover for the 1^st quarter of 2024 records a very satisfactory increase of +2.0% year-on-year and stands at € 118.7M. It includes the turnover of other activities, which grows by +4.0%, driven by the increase in hotels turnover (+19.4%).

General Meeting and distribution of dividends

Advertisement

During the General Meeting to be held on Wednesday 20^th March, shareholders will be able to vote on the distribution of a dividend in the amount of € 3,080,650.88 (i.e. € 0.32 per share). Payment of this dividend will be made no later than 31^st July 2024.

Partnership established with Julien Manival

Groupe Partouche is joining forces with Julien Manival (Group “Bonne Compagnie”, which counts seven establishments in Occitanie) within a new structure, Must Group, specializing in the hospitality and entertainment sector. The objective is to offer to a wide audience a unique experience, merging culinary passion, innovation and entertainment in a modern and festive approach.

This partnership materialized on the one hand by the acquisition of a restaurant in the heart of the 8^th precinct of Paris which will open at the beginning of 2025, and on the other hand, by the redevelopment of La Plage 3.14 on the Croisette in Cannes which will host this new concept at the beginning of coming spring.

Sustainable development: United Nations Global Compact and Women’s Empowerment Principles

Advertisement

Groupe Partouche renews in 2024 its commitment to the United Nations Global Compact, the largest international sustainable development initiative. Furthermore, Groupe Partouche is committed to gender equality and women’s empowerment by adhering to the UN Women’s Empowerment Principles (WEPs) in 2024.

Upcoming events:

General Meeting: Wednesday 20^th March 2024

Turnover 2^nd quarter: Tuesday 11th 2024, after stock market closure

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

Advertisement

ANNEX

1- Construction of the 1st quarter consolidated turnover (November N-1 to January N)

2- Breakdown of turnover by activity end of 1^st quarter (November N-1 to January N)

* The hotel Pavillon de la Rotonde at La-Tour-de-Salvagny has been included in the Hotels activity since 1^st November 2023 (against casinos previously)

3- Glossary

Advertisement

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.

Attachment

• Turnover – Q1 2024

Advertisement