Atlantic Casino Defies Revenue Dip with Surge in Profits, Fueled by Accounting Adjustments
Despite a 15% drop in revenue, the Casino del Atlántico, a subsidiary of Combine Group, reported a significant 63.8% increase in net profits for 2024, reaching approximately €522,000. This surprising outcome is largely attributed to accounting adjustments related to previously unrealized rental income.
Revenue Decline Amidst Economic Headwinds
The accounts, filed with the Mercantile Registry of A Coruña, reveal a turnover of €2.27 million for 2024, down from €2.69 million the previous year. This decline reflects broader economic challenges, including the impact of COVID-19, which, while partially mitigated by government-sponsored employment schemes (ERTES), still weighed on performance. However, the casino has demonstrated resilience, maintaining profitability even with reduced income.
Accounting Adjustments Drive Profitability
The key to the Atlantic casino’s improved financial performance lies in a one-time accounting adjustment. According to company records, the group released provisions made in the prior year for a failed rental agreement concerning a satellite gaming room in Santiago. This release significantly boosted profits for 2024.
The Araguaney Bass Saga
The failed rental agreement centered around a premises on Alfredo Brañas Street, linked to the Hotel Araguaney. In February 2023, a lease contract was initially signed, anticipating five years of income totaling €450,000. However, the agreement was ultimately rejected due to unmet conditions, leading the company to set aside funds as a provision. “When the aforementioned premises are not gathered, the necessary conditions was rejected and for this reason the income corresponding to five years was provided per amount of 450,000 euros,” a company statement explained.
A subsequent agreement reached in 2024 saw the casino pay rent invoices from August 2023 to March 2024, totaling €72,600, along with an additional €2,400 in lost profit indemnification.
Following two previous denials from the Santiago City Council, the group finally secured approval and opened a satellite gaming room on Vilagarcía Avenue in May 2024, resolving the issue.
Financial Backing from Parent Company
José Collazo Mato, a key figure in the gaming industry, benefits from a strong financial backing from the casino’s parent company, Comar investments and business management. As of December 31, 2024, a long-term loan agreement remained in place with a balance of €9.7 million, down from €10 million in 2023. Additionally, a renewable checking account held a balance of €1.2 million at the end of 2023, which was fully drawn down by the end of 2024. This financial support underscores the parent company’s commitment to the Atlantic casino’s long-term viability.
The Atlantic Casino’s recent performance demonstrates a complex interplay between revenue challenges, strategic accounting maneuvers, and robust financial support, positioning it for continued operation within the competitive gaming landscape.
