EuroBusiness Media (EBM) : Groupe Partouche, a European leader in casinos and leisure business published its yearly figures for 2014. Good morning Fabrice Paire. You are the Chairman of the Executive Board of Groupe Partouche. Few weeks ago, you predicted a good turnover for 2014 resulting from resumption in your business over the last 12 months. The results are being published today. Do you have other good news?
Fabrice Paire : Yes, very good news and more particularly very encouraging messages. First of all, I would like to remind that these results rest on a daily basic work, a top quality work carried on by the Group’s teams and that is based on what I may call the Group’s DNA. This DNA is constituted by three axes : the first is that we are focused on gaming that generates 90% of the Group’s turnover. The second fundamental axe is our top quality equipment, the care we provide to our clientele and the attention we show to each and every one of them. Last but not least, the third is our permanent will to innovate.
EBM : So how is all this translated figure wise ?
Fabrice Paire: Positively. Despite what we can call a sluggish economic environment, the turnover of the Group is stabilized at 410 €M even with a slight drop of 1.9% . The trend of the last six months is extremely encouraging since our net gaming revenue has registered a growth for the past two quarters. We can also notice an improvement in EBITDA margin reaching 16.9% and this is the third fiscal year in a row were our margin is above 16%. A configuration where through this good profitability and especially this acceptable result in the business we are quite satisfied to be higher by 1.5% compared with the business sector and with our main competitors. Finally, the policy we applied by selling non-strategic or heavy expensed establishments allowed us to notably reduce the net debt of the Group.
EBM : You mention the debt. So what is the exact amount of the net debt ?
Fabrice Paire : In fact, the net debt will drop to 128 €M. This represents one of the major issues of this year closure. Let me remind you that we switched from a 184 €M to a 128€M – a fundamental difference. More important is that with the foreseen selling of the Hôtel at Juan-les-Pins, we will go below a significant and lets us use the word psychological threshold of 100€M, which should be met during the first coming half-year.
Today, even before reaching the threshold of 100€M, a net debt of 128 €M represents less than 40% of our equity capital (330 €M) but also less that twice the Group’s EBITDA.
EBM : Did the stock market integrate these data ?
Fabrice Paire : It is not up to me to comment the market price. Nevertheless, Groupe Partouche today has a good visibility on its business and more important an extremely clean situation of its debt. The market will always be volatile, but it is essential to remind you that the value of the Group nowadays to EBITDA is closer to 3.
EBM : How do you foresee the present year 2015 ?
Fabrice Paire : Gaming is the main core of our business and we are working with the perspective to maintain the good trend we reached during the last 6 months. Furthermore, I believe that we are in front of very good opportunities. Our offer meets the expectations of our customers and we still can seduce them. The casinos of Groupe Partouche have registered 7 and half million entries last year, while 4 french adult people over 5 never set foot in a casino. This is a real conveyor of opportunities.
EBM : So full confidence in the future ?
Fabrice Paire : Exactly, full confidence. One last time, let me remind you: the good news is that with the 2014 figures, Groupe Partouche came back to Profit, with a good visibility in our business and an extremely healthy financial structure. Yes we can look at the future with confidence.
EBM : Fabrice Paire, Chairman of the Executive Board of Groupe Partouche, Thank you very much.
Fabrice Paire : Thank you.
