The company reported the financial results for the period April-June, 2024.
Chile.- Enjoy presented the financial information for the first quarter of 2024, highlighting the crisis the company is undergoing, which is in the midst of a second judicial reorganization process, already approved by the creditors' assembly.
According to the report, the casino operating company recorded losses attributable to the owners of the parent company amounting to CLP60.400m (USD63.8m) between April and June, doubling the losses of the same period in 2023, bringing the total losses for the semester to CLP86.200m (USD91m), as reported to the Financial Market Commission (CMF). This figure compares negatively with the more moderate loss of CLP38.600m recorded in the first semester of 2023.
This was "mainly explained by a lower Ebitda generated of CLP10.839m (USD11m), due to CLP17.785m (USD18m) of a provision recorded against the potential collection of guarantee tickets resulting from the revocation process of a casino license in the city of Puerto Varas," said Enjoy. In July of this year the Supreme Court rejected Enjoy's claim regarding the revocation of the permit to operate the Puerto Varas casino by the Superintendence of Casinos in 2022.
Furthermore, the poor financial results were due to "CLP18.680m (USD19.7m) of loss in the income tax item, mainly originated from tax losses generated that are not expected to be usable in the medium term, and therefore, the benefit from deferred tax assets is not recognized," Enjoy disclosed in the documents submitted to the CMF.
The revenues of Enjoy also contracted but to a lesser extent, decreasing less than 1 percent in the semester, from CLP165.704m (USD175m) to CLP164.722m (USD173m). In the quarter, its sales decreased by 1.4 percent from CLP71.376m (USD75m) to CLP70.375m (USD74.3m). Although there was an increase in revenues from Uruguay due to the exchange rate, the scenario in Chile was negative, falling by 5 percent (CLP6.226m – USD6.5m).
This was "mainly due to CLP10.139m (USD10.7m) of lower gaming revenues from Enjoy Antofagasta, which are not consolidated and are replaced by rental income providing a higher margin, and also due to lower revenues of CLP994m at Enjoy Viña del Mar due to the fire that occurred in February of this year in the V Region, which involved restrictions on opening and operating hours for several weeks of the month," the holding stated.
See also: The administrator of Enjoy reaffirms the sale of the casino operations in Punta del Este
The ebitda of the company (earnings before interest, taxes, depreciation, and amortization, a measure of its operational cash flow) turned negative, reaching CLP3.105m (USD3.2m) at the end of the first semester, whereas in the first part of 2023 it was CLP7.734m (USD8.1m) positive. Enjoy explains that the drop in ebitda was due "mainly to not achieving the revenues required to finance the costs and expenses incurred."
In August, Enjoy approved a judicial reorganization plan to continue its operations, and later reached an agreement with contingent creditors that sets the terms for working capital financing of the company, reviewed by the administration.
