Leading Chilean casino operator Enjoy has reported a significant 123% increase in losses as of June 2024, more than doubling its negative balance from $38.642 billion to $86.154 billion by the end of the first half of the year.
In a report to the Financial Market Commission (CMF), Enjoy explained that the current situation was “mainly due to the lower EBITDA generated, a loss of $10.839 billion, along with $17.785 billion set aside as a provision for the potential collection of guarantee bonds following the revocation process of a gaming license in the city of Puerto Varas.”
Additionally, they highlighted “a loss of $18.680 billion in the income tax sector, mainly caused by tax losses that are unlikely to be utilized in the medium term, and, therefore, the deferred tax asset benefit is not recognized.”
Regarding the slight contraction in the company’s revenue, they noted that this was “mainly due to $10.139 billion in lower gaming revenue from Enjoy Antofagasta, which is no longer consolidated and is replaced by rental income, contributing a higher margin. Additionally, $994 million in lower revenue from Enjoy Viña del Mar due to a fire in February this year in the V Region, which led to restrictions in opening and operating hours for several weeks during the month.”
In January Enjoy, announced that it was undergoing another restructuring, the second in just two years. Enjoy cited a series of reasons for not reaching its growth projections, including “liquidity constraints and the slow post-pandemic recovery, which had greater complexities than initially anticipated.”
This month Enjoy signed a binding agreement to secure new financing as part of its restructuring, aiming to cover the payment of casino licenses for its Pucón, Coquimbo, and Viña del Mar locations.