South & Latin American declines hurt Codere recovery


The recovery of embattled Spanish gambling operator Grupo Codere (Codere) has been gravely impacted by the depreciation of South/Latin American currencies against the € currency.

Presenting its H1 2016 results (period ending 30 June), Codere who restructured its €1,1 billion debt under UK High Courts in January would record group operating losses of €7.8 million (H1 2015: €65 million).

Despite recording growth in its Spanish and Italian gambling divisions, Codere performance would be deeply affected by severe all-round revenue and earnings declines throughout its South/Latin American groups. Furthermore, the operator would be impacted by restructuring expenses within its South American properties combined with higher regional taxes.

The Spanish operator would record severe revenue hits in its Argentine (down – 22%) and Mexican (down -12%) gambling divisions, with the company posting group Q2 2016 operating losses of €34 million.

Updating the investors, Codere governance would choose to attach its restructuring/refinancing costs to the firm’s H1 2016 corporate update.

Securing a €1.2 billion loan in April 2016, the company would register a €1.1 billion debt for equity exchange loss during the period.  Closing its H1 2016 performance Codere would report group net income losses of €1.137 billion.

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