Codere’s Operating Revenue Declines By More Than 50% in Q1

Spanish gaming company Codere has published figures that reveal just how badly this brand was hit by the ongoing health crisis.

The pandemic which started over a year ago continues to affect how gambling companies are operating. For Codere, the first quarter’s totals saw a decline in operating revenue 54.3%, for a total of EUR 127.2 million generated.

Cost Saving Didn’t Help

Operation restrictions and venue closures were the main contributors to these lower totals.

Codere’s retail operations in Italy were closed during this first quarter, while operations in other regions like Mexico and Panama were also affected due to closures and pandemic restrictions.

The company’s adjusted EBITDA for Q1 came in a EUR 3.5 million. This is more than a 92% decline compared to the first quarter of last year. However, in that time, the global health crisis was only begin to surface and was located in China.

Not even cost-saving measures that the company implemented, as well as efficiency tactics, could prevent the decrease of adjusted EBITDA margin to 2.7%.

This exceeds 14% less than the results in last year’s first quarter.

Closures Leading to Losses

The net loss of EUR 91.5 million was the consequence of closures within a company during the first quarter. Also leading to this loss were interest expenses and the devaluation of operating currency.

Codere only had over 30,000 active slots in all markets except for Uruguay and Italy by the end of March 2021.

The brand operates the large number of gaming halls, arcades, sports betting shops and bars.

However, despite these discouraging news, the company is not slowing down their expansion and growth efforts because that is the only thing that can turn this situation around.

Codere has recently signed a deal with Pariplay that will being their portfolio to the market of Colombia.

Sarit Adania, Codere’s Casino Product Manager, said that Pariplay will help diversify their slots portfolio in South America.

Both brands are sure that the cooperation will be productive in a region where online gambling grows at a great rate.

Source:

“Codere S A : 20%05/2021 Q1 2021 Earnings release”, marketscreener.com, May 20th 2021