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Spain – Codere reports growth in Spain and Italy as Latin America drops

By - 30 August 2016

Spanish multinational Codere has reported that group turnover for the first half of this year stood at €734.3m, 8.9 per cent less than in the same period in 2015 as a result of the devaluation of the Argentine peso (63 per cent) and the Mexican peso (19 per cent) compared to the Euro.

This decline however was partially offset by revenue growth in Italy (€27.4m) and Spain (€9.1m). In Argentina the company achieved revenues of €256.8m in the first six months of 2016, 21.4 per cent less than the same period of 2015, due to the depreciation of the Argentine peso against the euro.

Adjusted EBITDA for the period reached €61.6m – 11.9 per less compared to the same period in 2015. Meanwhile the cumulative EBITDA margin for the period was 24 per cent, 2.6 percentage points higher over the first half of 2015.

In Mexico, sales reached €162.3m, 11.5 per cent less than in the first half 2015 (€183.3m) again due to the depreciation of the peso against the euro (19 per cent). However performance did improve as in local currency revenue grew 5 per cent, driven by four new gaming rooms. Adjusted EBITDA for the period stood at €43.9m compared to €49.6m for the same period in 2015 in Mexico while the adjusted EBITDA margin for the period stood at 27 per cent.

The outlook was more positive in Spain where revenues improved 12.2 per cent reaching €83.9m reflecting a boost in all areas of business according to the company press statement. In Italy, revenues also increased by as much as 20 per cent in the first half of the year, reaching €164.5m thanks to a marked improvement in the company’s bingo and AWP sectors.

However the company recorded a loss of €1,137.3m in the first six months of this year compared to the same period last year when the company reported losses of €48.7m as a result of the restructuring of the group’s balance sheet. In September 2014 it was announced that Codere had managed to avoid insolvency which could have risked its licences by striking an agreement with creditors to restructure €1.1bn of debt. Under the terms of the deal, Codere’s creditors swapped existing debt for €675m in newly issued bonds and a €253m loan. Bondholders also swapped €636m worth of debt for a 97.78 per cent equity stake in the company.

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