The balance shows that the casino operator earned CLP71.292m (USD74m) in revenue between July and September.
Chile.- Dreams presented the financial information for the third quarter of 2024, and alarms were raised due to a decline in both revenue and EBITDA (operational result of the company, before deducting interest, amortization, depreciation, asset impairment, and income tax).
Dreams, which operates 22 licenses and casino operation permits, announced that it recorded earnings of CLP6.255m (USD6.9m) in the third quarter, a figure that represented a 23 percent decrease compared to the same period in 2023.
On the other hand, consolidated revenues fell 10 percent to CLP71.292m (USD72.9m). This, according to the company, was explained by a lower retention level in the Casino segment and a significant reduction in the adjustment for Argentine hyperinflation for the quarter compared to the previous year.
The EBITDA fell 17 percent compared to the July-September 2023 period, while the EBITDA margin was at 25.1 percent, affected by lower revenues and inflationary pressures, although partially offset by efforts in operational cost savings.
Chile remains the main market for Dreams, contributing 77 percent of total revenues. "Cost control measures helped mitigate the negative effects of inflation," they said about the Chilean market.
The revenues of the Casino Gaming segment, which represent 81 percent of consolidated revenues, decreased by 6.9 percent to CLP57.747m (USD59m) due to a lower level of table gaming and retention in Chile, which is a specific factor of the casino business, which performed worse than observed in the same period of 2023, the company added: "This has a direct relationship with the chance present in the games and resulted in a higher volume of prizes to our customers during this quarter."
In the case of operations in Peru, the revenue level was CLP7.870m (USD8m) with a growth of 14 percent versus the previous year.
In Argentina, revenues were pressured by the impact of the government's implemented basic service rate hikes and its unfavorable short-term impact on customers' disposable income, Dreams noted.
Additionally, Dreams indicated that there was a significant reduction in the adjustment for hyperinflation for the quarter compared to the previous year, as a result of the significant reduction in the inflation rate reported by the Argentine Institute of Statistics and Censuses (Indec), which directly impacted revenues, moving from an effect of CLP7.525m (USD7.7m) in the third quarter of 2023 to CLP1.616m this last quarter, with a reduction of 78.5 percent.
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The Hotel segment had revenues of CLP5.922m (USD6m), 40.9 percent lower compared to the third quarter of last year. "This reflects the effect of the lower hyperinflation adjustment mentioned earlier in the Mendoza operation, in addition to observing a lower occupancy rate, due to lower demand from the local Argentine tourist due to the economic adjustment already explained, as well as the decrease in the gap between the Blue dollar and the official dollar, which makes it no longer as cheap and attractive for the foreign client as it was when the fixed exchange rate favored it," the company indicated.
For its part, the revenues of Food and Beverages were CLP7.622m (USD7.8m) in the third quarter of 2024, up 4 percent from the previous year.
