Codere H1 dragged by continued global pandemic headwinds

Codere SA continues to mitigate the impact of COVID-19 pandemic restrictions on its business lines, as the Bolsa Madrid group prepares to divest its Codere online subsidiary.

Publishing its results for the first half of 2021, following approval from its board of directors, Codere revealed the company turned over €266m, a 16 per cent decrease compared to the previous year.

Still feeling the impact of the global pandemic during H1, the company’s Italian operation remained closed until June whilst in Mexico, Argentina, Uruguay and Panama, there were temporary closures with operational restrictions still in place.

As a result, the group’s operating income in the first half fell by €51.3m, reaching €266.3m, 16.2 per cent less than in the same period of the previous year. The most significant falls occurred in Italy (€54.7m), closed from October last year to June, and Argentina (€23.4m), closed for almost the entire second quarter.

Moreover, operating expenses decreased by €48.8m (-16.6 per cent year-on-year), although the company pointed out that “volatility of activity during the semester has made it difficult to align fixed costs with income generation”.

As a consequence of the above, the company reached an adjusted EBITDA of €21.5m in H1 this year, 10 per cent lower than 2020.

During H1 2021, the company generated a loss of €168.7m, compared to €177.6m in the same period last year. The company’s cash as of June 30, 2021 was €93.1m.

The board of Codere continues to work on the implementation of the financial restructuring announced in April, and expects to complete it during the month of October.

Codere closed its H1 trading, announcing that it had filed an F-4 registration with the SEC outlining its intentions to list its ‘Codere Online’ business on the US Nasdaq.

The planned IPO will be led by SPAC partner DD3 Acquisitions Corp, and will see Codere divest its entire shareholding in its online business, which will be operate as a independent business.

Codere Online’s IPO proposal has been approved by the debt-holders of Codere – who maintain group-wide outstanding liabilities of $700 million

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