Groupe Partouche: A Resilient Income Play with Dividend Stability and Upside Potential

In a world where economic headwinds loom large, investors crave companies that blend steady income generation with growth potential. Enter Groupe Partouche (Euronext: PART), a French gaming and hospitality giant that's proving it can deliver both. Let's dissect why its disciplined capital allocation, operational execution, and recent milestones make it a compelling income play—and why now is the time to act.

The Numbers Tell a Story of Resilience

Groupe Partouche reported Q2 2025 turnover growth of 5.7%, pushing revenue to €106.9 million. This isn't just a one-quarter blip—it's part of a 5.7% year-to-date rise to €233.3 million, marking consistent progress. But the real magic lies in how they're growing:

1. Casino Renovations Paying Off
   Renovations at key venues like La Tour-de-Salvagny, Divonne, and Annemasse are driving attendance and revenue. Take the Pasino Grand in Aix-en-Provence, where non-gaming revenue soared 81.4% thanks to upgraded facilities and partnerships with top chefs. Meanwhile, French Gross Gaming Revenue (GGR) rose 3.7% to €160.6 million, with slots, electronic tables, and traditional tables all hitting growth targets.

2. Non-Gaming Revenue Diversification
   Groupe Partouche isn't just a casino operator—it's a hospitality powerhouse. Q2 non-gaming revenue jumped 15.9% to €24.5 million, fueled by catering services (+24.6%) and its Belgian online gaming expansion (+72.5%). Year-to-date, non-gaming revenue hit €49.6 million (+16.8%), reducing reliance on volatile gaming markets. This diversification is a game-changer, shielding the company from sector-specific downturns.

3. International Expansion Gaining Momentum
   The acquisition of the Cotonou casino in Benin and partnerships in Belgium are paying dividends. While international GGR dipped slightly (-4.3%), strategic bets like the upcoming Paris gaming club with TexaPoker (launching 2026) signal long-term ambition.

Financial Health: Stronger Than Ever

The May 26 court approval to exit its decade-old safeguard plan is a transformative milestone. By amending its repayment schedule, Groupe Partouche slashed debt risks, lowering its leverage ratio to a rock-solid 1.7x—well within prudent levels. This means:
- Debt under control: Net debt of €172 million is manageable, especially with €365 million in equity.
- Flexibility to grow: The company can now reinvest in renovations, tech upgrades, and new markets without overleveraging.

Dividend Stability: A Safe Harbor for Investors

With a proposed €0.32 per share dividend for fiscal 2023/2024—maintained despite renovations—the company is proving its commitment to shareholders. The dividend, payable by July 31, 2025, offers a 3.2% yield at current prices, making it a standout income play. Investors should act before the June 30 ex-dividend date to lock in this payout.

Why This Is a Buying Opportunity

• Catalysts Ahead: Final Q2 results (due Sept. 9), the dividend payout, and the safeguard plan exit all remove overhangs, unlocking upside.
• Valuation: At 12x 2025E earnings, Groupe Partouche trades at a discount to peers, with room to grow as leverage improves and non-gaming revenue scales.
• Management Track Record: Execs have delivered on renovations and diversification, proving they can execute in tough markets.

The Risks? Manageable, Not Dealbreakers

• Renovation Hiccups: Ongoing work at Cabourg and Calais could temporarily disrupt operations, but cash flow is strong enough to absorb any short-term dips.
• Macroeconomic Downturns: A recession could hit discretionary spending, but Groupe Partouche's diversified revenue and low leverage buffer it better than peers.

Final Verdict: Buy Before the Dividend

Groupe Partouche isn't just surviving—it's thriving. With a 5.7% revenue growth runway, a fortress balance sheet, and a dividend that's both stable and attractive, this is a buy-and-hold gem. Investors who act now get paid twice: once via the July dividend, and again as the stock climbs on execution of its growth roadmap.

Action Item: Buy PART before June 30 to capture the dividend. Set a price target of €15 by year-end 2025 (15x 2025E earnings), with upside if non-gaming momentum accelerates.

This is the time to bet on Partouche's disciplined strategy. The cards are stacked in its favor—don't fold.