Chilean casino operator Enjoy has published its financial report that covers the activities from the first quarter of 2022, where a 330% increase can be seen in its revenues.
Ahead of the company’s publication, La Voz de Chile shared the results and indicated that the numbers have been on the rise due to the reactivation of the land-based casino industry, the opening of new gambling halls in Viña Del Mar, Coquimbo, and Pucón, and its online activity that already has 43,000 registered users.
The EBITDA rose to $20.9m by the end of March, although it should be noted that these results are compared with the first three months of 2021 when the casinos were reopening after almost a year of being shut down because of the pandemic. Back then, Enjoy’s losses totaled $6.5m.
When compared to the year-to-date results to the end of the first quarter, Enjoy generated $97.6m in revenues, representing a 330% increase.
“Being able to undertake projects as big as the ones from Viña Del Mar, Pucón, or Coquimbo in the middle of the pandemic is something amazing that we must highlight, and also recognize the work of our team. This is proof that when the public and private sectors work together, great goals can be achieved,” said Henry Comber, President of Enjoy, during the Pucón casino inauguration.
“In addition to focusing on executing long-term plans for our casinos, we’re currently preparing for a challenging online market. We have taken important steps so that our operation is ready when online gambling is finally possible in Chile.”
Enjoy could face growth challenges
Enjoy and local operator Dreams unveiled a proposal at the beginning of the year that would lead to a single company that would cover 76% of Chile’s market.
The National Economic Prosecutor’s Office (FNE) began an arduous investigation, which is in phase two, to determine if it’s possible to carry out this merger.
During this process, the FNE explained that the merger could be a risk since there would be no strong operators to compete with the new company.
FNE is also investigating possible industry collusion. Last week, it carried out a series of raids involving directors of casino operators and seized different devices, including cell phones and computers. After the raids, Enjoy’s shares fell 4.9% to 2.23.
The collusion accusations run parallel to the merger investigation, and local outlet Diario Financiero shared a statement from the Senior Manager of Legal Services at EY Elías Astudillo in which he said that this is an “unprecedented” case.
After the raids, the companies involved in the merger shared their concerns and ruled out having committed any crime. Enjoy also expressed its “absolute belief that it has always acted within the existing regulations, including the ones related to free competition.”
The company that also operates in other South American countries, such as Argentina and Uruguay, said that “the investigation will conclude that the conduct of the company and its main executives has always been in accordance with the law and the highest standards of business ethics.”