The balance shows that the casino operator earned CLP68.714m (USD74m) in revenue between April and June.
Chile.- Dreams presented the financial information for the second quarter of 2024 and alarms were raised due to a drop in figures both in revenue and EBITDA (operational result of the company, before deducting interest, amortization, depreciation, asset impairment, and income tax). However, the company did celebrate the reduction in financial debt.
Dreams, which operates 22 licenses and casino operation permits, announced that it has recorded an EBITDA of CLP17.794m (USD19.3m) between April and June, a 14 percent decrease compared to the same period last year, while in revenue it has obtained CLP68.714m (USD74m), a 6 percent decrease compared to the second quarter of 2023.
Dreams, holding a market share of 39.1 percent in Chile, reduced its operational result during the second quarter by 1 percent. Its figures also reflect a 10 percent lower cost of sales. The reduction in revenue was also due to a lower hold and demand pressures in Argentina and Peru.
On the other hand, the company explains in its financial report that this lower EBITDA margin is unfavorably impacted by the reduction in revenue; by inflationary pressures in Argentina (including adjustment for hyperinflation), but partially offset by efficiency in GAV.
Chile accounted for 77 percent of total revenues in the period, compared to 75 percent in the same period of 2023. The company has made an effort to control expenses that partially offset the inflationary pressures.
The quarterly revenue of Casinos fell by 6 percent compared to the second quarter of last year; the company justified the drop due to lower demand in Mendoza. This area represented 80 percent of the consolidated revenues during the analyzed period, just as in the previous year.
The revenue of Hotels recorded a 14 percent drop in the quarter as a result of lower occupancy especially in Mendoza and the business segment represented 9 vs 10 percent in the second quarter of 2023.
The Food and Beverage segment recorded a 0.1 percent year-on-year increase, increasing its relative share of revenues to 11 percent due to the drop in Casino and Hotel revenues
In Argentina, an effort to rationalize expenses continued, trying to compensate for the high inflation rate and sales pressure. Additionally, Peru Casinos required higher commercial spending due to the competitive situation and the industry's downturn.
On the other hand, Peru Online is in a highly competitive market, and with a savings plan in expenses, a more efficient and focused management has been achieved.
See also: What is known about the new casino that Dreams will build in Maule
The company continues with its policy of maintaining a solid long-term debt structure to strengthen the balance sheet. Additionally, Dreams reduced its financial debt by CLP11.571m (USD12.5m) or 7 percent during 2023.
The good results obtained by Dreams translate into improvements in risk classification and solvency and bonds, reaching level “A” with a “Stable” Trend in the three rating agencies, higher than pre-pandemic levels.
