Cirsa Profit Grows in Q1 Despite Peru Tax Hit on Online Betting
Cirsa has delivered an 8 per cent increase in core earnings during the first quarter of 2026, reaching a record net operating revenue of €623.0 million. The Blackstone-owned Spanish gambling company demonstrated financial resilience despite facing significant headwinds in its online betting operations. In contrast to the overall growth, increased gaming taxes in Peru knocked profits from the company’s online betting business 12 per cent lower. The mixed results highlight the complex regulatory landscape facing international gaming operators. Despite these challenges, Cirsa remains confident in its annual performance trajectory. The company has reiterated its 2026 outlook and confirmed it is fully on track to meet the high end of its core earnings target range of €800 million to €820 million.
Cirsa Reports 8% Core Earnings Growth in Q1 2026
The gaming operator posted net operating revenue of €169 million and EBITDA growth of 18 per cent in the first quarter of 2025, supported by strict cost control measures. Revenue climbed 8 per cent quarter-on-quarter during this period. Subsequently, Cirsa maintained momentum through the second quarter of 2025, recording operating revenue of €579 million and operating profit of €187 million. These figures marked an 11.3 per cent increase in operating revenue and a 9.2 per cent rise in operating profit compared to the second quarter of 2024.
The company achieved 68 consecutive quarters of growth, excluding the Covid period. Executive Chairman Joaquim Agut attributed the results to employees’ commitment to continuously improving operations and the execution of customer-focused strategy.
Cirsa’s online gaming and sports betting division delivered exceptional performance, with revenue surging 63 per cent and EBITDA jumping 120 per cent year-on-year in the second quarter. Strong performance in Spain and Italy, combined with the 2024 acquisitions of Apuesta Total in Peru and Casino Portugal in Portugal, drove this expansion. The company’s geographical diversification strategy continued yielding results across multiple markets. In addition, Cirsa strengthened its position as a global leader in gaming sustainability, rising to first place worldwide in Morningstar’s Sustainalytics ESG Rating.
Peru’s Gaming Tax Hike Hits Online Betting Profits
Peru established a 1 per cent Excise Tax on online gaming and sports betting through Legislative Decree 1644, enacted on 13 September 2024. This new levy came on top of an existing 12 per cent gambling tax that Law 31557 introduced in August 2022. The government initially set the rate at 0.3 per cent until 30 June, before raising it to the full 1 per cent from 1 July.
The tax structure created immediate operational challenges for Cirsa and other licensed operators. Specifically, the levy applies to the total amount wagered, regardless of whether players win or lose. Given that bets are placed with recycled or virtual money through turnover, meaning the same deposited funds are wagered multiple times, this distorts the tax base and increases operational costs. Currently, consumers pay an additional 0.3 per cent for each bet placed, but this cost will more than triple when the rate reaches 1 per cent.
Industry executives argue the tax penalizes formal users who choose regulated platforms, creating a negative perception of legal gambling. Nonetheless, Peru’s regulatory framework has proven financially significant, with remote sports betting tax generating 117.4 million and remote gaming tax producing 91.4 million between January and November 2025. Total gambling tax revenue reached 419.5 million during this period.
What Does Cirsa’s 2026 Outlook Signal for Investors?
Guidance for the current year positions net operating revenue between €2.50 billion and €2.56 billion, representing growth of 7 per cent to 9.5 per cent compared to 2025 figures. EBITDA projections range from €800 million to €820 million, implying year-on-year increases between 7.2 per cent and 9.8 per cent. The midpoint of this EBITDA guidance aligns with consensus expectations of €813 million.
These projections follow robust full-year 2025 performance, when Cirsa achieved operating revenues of €2.339 billion. Operating profit reached €753.5 million, excluding €6.9 million in IPO-related costs, exceeding the guidance target committed to investors. Accordingly, the company delivered its highest net profit in history at €72.9 million, supported by progressive deleveraging that reduced financial costs.
Cirsa completed its initial public offering at €15.00 per share, with shares opening 6.7 per cent higher at €16 before settling at the IPO price. The listing secured a €2.5 billion valuation and raised €400 million in fresh capital.
