Dire Q3 sees Codere declare group losses of €30 million

Publishing its Q3 trading statement, Bolsa Madrid gambling group Codere SA records performance declines across all key operating markets, impacting the firm’s corporate recovery.

Reporting declines across all South American territories (except Uruguay) and a stagnating performance in its home market of Spain, Codere posts a 3.6% decline in group revenue to €343 million (Q32018: €356m).

Despite reducing its exposure to the Argentine market, lowering ARG expenditures by 25% during year trading (total €183m), Codere continues to be impacted by the severe PESO devaluation (tracking -64%) impacting its assets performance and valuations.

A breakdown of market performance sees Codere ARG revenues decline a further 12.5% to €80 million (Q32018: €92m), with Codere further recording a 14% ARG EBITDA decline to €19 million.

Elsewhere, publishing its Q3 LatAm income statements, Codere details a 7% decrease in Mexican revenues to €76 million (Q32018: €81m), citing that tougher macroeconomic conditions and local taxes impacting gaming hall expansions with period MEX operating profits reduced to €1.5 million (Q32018: €21m).

In Spain, despite continuing to deploy efficiencies to lower operating costs across its retail units, Codere records stagnant ESP revenues of €46 million (Q23018: €47m) as its home market division generated operating profits of €1 million (Q23018: €800,000).

In its consolidated statement, Codere governance maintains period operating costs at €263 million, reducing year-to-date operating expenditures at €800 million (YTD 2018: €843m).

Closing Q3 trading, Codere governance posts as group adjusted EBITDA decline €80 million (Q32018: €93m) as corporate net losses widen to €31 million (Q32018: -€19m).

Further to its trading statement, Codere governance published an update in relation to its investigation of ‘accounting inconsistencies’ attached to its Colombia and Mexico divisions published during Q2 trading.

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