Gaming loss offset by VIP action
Enjoy S.A., a leading gaming and resort operator in Chile and Uruguay, company recorded losses of CLP$ $776.38 million (US$1.3 million) in 2017 compared to CLP$ $39,673.15 million (US$66,400) in 2016. During 2017, revenues totaled CLP$ $283,676.95 million, 3.7 percent more than the CLP$ $273,564.33 million posted in 2016.
In its fourth-quarter results, Enjoy said the gaming segment of its business recorded an increase of 2.3 percent year-on-year while the nongaming segment, related to hotels, restaurants and other services, registered growth of 7.8 percent, which provided an overall boost to its balance sheet.
In cumulative terms, adjusted EBITDA was CLP$ $62,118 million at the end of last year, 0.4 percent higher than the CLP$ 61,870 million recorded at the end of 2016.
The company owned by the Martinez family did particularly well in its core markets of Chile and Uruguay, G3Newswire reported. In Chile, revenues increased 0.2 percent year-on-year for the fourth quarter, driven by Enjoy Viña del Mar and its operations in the south. Meanwhile its non-gaming sector reported consolidated growth of 5.7 percent year-on-year.
Gaming operations saw revenues fall 0.7 percent year-on-year caused by a 14.5 percent drop in visitation for the period. But that loss was partially offset by higher activity in its VIP rooms, which grew 10.6 percent year-on-year.
In August 2017, U.S.-based private equity firm Advent International acquired a significant equity stake in the Chilean operator. Under the terms of the agreement, Enjoy remained publicly traded with the Martinez family retaining a substantial equity ownership position in the company. Advent pledged to invest capital of up to US$170 million.
Founded in 1975, Enjoy owns and operates 10 casinos and 10 hotels in Chile, Uruguay, Argentina and Colombia, with more than 6,000 slot machines, 350 gaming tables, 1,200 hotel rooms and 30 restaurants.
