Cirsa CEO Says Stock Undervalued Despite Strong Financial Results

Cirsa CEO Joaquim Agut used the gaming group's first shareholders meeting since its public listing to defend the company's stock valuation, arguing that market pricing fails to reflect the operator's consistent financial performance.

Speaking at the recent General Shareholders Meeting, Agut emphasised the management team's credibility built over a 20-year trajectory of fulfilling commitments. The company has delivered 70 consecutive quarters of EBITDA growth through the end of 2025, with only the pandemic period interrupting this streak.

"This is a direct quote in Spanish - should not be corrected"

— Joaquim Agut, Executive President, Cirsa Group

Record Financial Performance Drives Confidence

Cirsa reported net revenues of €2.339 billion, representing an 8.8% increase that exceeded initial market guidance. EBITDA reached €753.5 million with a 32% margin on revenues, positioning the company among what Agut described as the sector's global leaders.

"This is a direct quote in Spanish - should not be corrected"

— Joaquim Agut, referring to Cirsa's EBITDA margin performance

Net profit multiplied by 5.8 times to €72.9 million, while cash generation remained strong with 75% of EBITDA converted to operating cash flow. Following the July 2025 IPO, Cirsa used all raised funds to reduce leverage, bringing the ratio down to 2.70 times at year-end.

International Expansion Strategy Delivers Results

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The company's geographic diversification strategy now generates over 60% of revenues from international markets. Italy contributes 25% of total revenues, while Peru accounts for 10% and Panama 8%, with Spain comprising the remainder.

Cirsa completed 17 bolt-on acquisitions in 2025, including casinos in Peru and Morocco. The company maintains strict investment criteria, with Agut stating:

"This is a direct quote in Spanish - should not be corrected"

— Joaquim Agut, on acquisition policy

The online business unit grew 25.8% and now represents 22% of total revenues. Agut reaffirmed the group's commitment to operating exclusively in 100% regulated environments across all markets.

Forward Guidance and Dividend Declaration

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For 2026, despite geopolitical volatility, Cirsa projects revenues between €2.5 billion and €2.56 billion with EBITDA reaching up to €820 million. The company proposed its first dividend as a listed entity worth €75 million, equivalent to €0.45 per share.

ESG Leadership and Governance Enhancement

Cirsa leads Sustainalytics' ESG ratings among 69 gaming sector companies. Environmental achievements include a 34% reduction in carbon footprint and 70% renewable energy usage. The company achieved absolute gender parity across its workforce.

The Board of Directors expanded to nine members, with five independent directors enhancing governance standards following the public listing.

Responsible gaming remains a priority with over 8,000 hours of technical training delivered and more than 15,000 hospitality establishments accredited in Spain.

Stock Valuation Disconnect

Despite sector-wide declines due to regulatory changes in various jurisdictions, analysts unanimously support Cirsa's stock with 47% revaluation potential. Agut concluded his remarks by addressing the valuation disconnect:

"This is a direct quote in Spanish - should not be corrected"

— Joaquim Agut, on stock valuation

— 47%, revaluation potential. Agut

Market Signal for Gaming Operators

Cirsa's shareholder meeting highlights a recurring challenge facing regulated gaming operators: translating consistent operational performance into market recognition. The company's 70-quarter growth streak and international diversification strategy demonstrate the potential rewards of disciplined expansion in regulated markets. For operators considering public listings, Cirsa's experience illustrates both the benefits of transparent financial reporting and the ongoing need to educate markets about gaming sector fundamentals. The disconnect between analyst confidence and current valuations suggests broader sector headwinds may be overshadowing individual company performance.

The emphasis on ESG leadership and responsible gaming credentials reflects growing investor focus on sustainable gaming practices, potentially creating competitive advantages for operators that prioritise these areas ahead of regulatory requirements.

According to AzarPlus.