Codere’s 2018 opening hurt by severe South American currency declines

Steep South American currency declines against the US dollar, having impacted Bolsa Madrid gambling firm Grupo Codere’s Q1 2018 performance.

Publishing its Q1 2018 trading update (period ending 31 March), Codere reveals a corporate revenue and earnings decline, despite growth in its home market of Spain.

Group operating revenues, declined by 5.5% to €383 million (Q1 2017: €405 million), as the Spanish gambling operator reported no revenue growth across its entire South American portfolio.

Tough trading conditions would see Codere record a period EBITDA of €56 million, down 12% on corresponding Q1 2017’s €64 million.

Closing its trading update, Codere governance would declare a group operating profit of €28 million, down 22% on Q1 2017’s €36 million, with the company delivering a period operational net income of €800,000.

As yet, Codere governance has not issued a corporate update, as to whether the company will revise its full-year 2018 expectations following its tough start to 2018.

The Spanish gambling group is currently implementing its executive restructure following the appointments of Vicente Di Loreto as new Group Chief Executive, accompanied by Norman Sorensen Valdez as Group Executive Chairman.

Entering 2018, Codere governance has stated that the company will undertake significant systems and product upgrades, as the operator seeks to bolster its presence within Spain and Argentina.

Codere’s new leadership duo, currently seeks to expand the operator’s retail presence within the Spanish regions of Andalucía and the Balearic Islands, whilst further scouting new Argentine provinces in which to expand its bingo hall and arcade properties.

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