SBC News Codere backs stable portfolio ahead of further 2022 transformations

Codere backs stable portfolio ahead of further 2022 transformations

Codere SA has published a performance update on Q4 2021 trading activities – a period that saw the Spanish gambling group delist from the Bolsa Madrid exchange to comply with bondholders’ orders.

During Q4 trading, Codere registered corporate revenues of €291m, a  result that saw the company match 85% of like-for-like revenues achieved during Q4 2019  prior to its business being impacted by the COVID-19 pandemic.

Improved revenue results were attributed to the continued reopening of the group’s land-based units across multiple geographies.

A breakdown of market performance saw Codere’s Spanish home-market arcade and sportsbook properties achieve revenues of €42m.

Despite facing continued COVID-19 headwinds, the group’s Mexican assets generated revenues of €54m. Codere noted that its recovery in the Mexican market had been “slower than in other geographies due to the continuity of operating and capacity restrictions, as well as the country’s slow macroeconomic recovery”.

Elsewhere in South America, Codere announced better than anticipated results in Argentina, where its units generated revenues of €66m, despite countering tough macroeconomic variables.

The recovery in key markets saw the firm declare an adjusted EBITDA of €45m for Q4 trading, reflective of a 15% EBITDA margin.

The company closed FY2021 by divesting its Codere Online unit via a merger with SPAC DD3 Acquisition Corp. The Codere Online venture is currently being recapitalised on the US Nasdaq to pursue new opportunities in LatAm markets 

Outlining 2022 directives, Codere will continue its business transformation under the domain of ‘Nueva Codere’, the group’s business identity under the ownership of bondholders.

“With the culmination of its financial restructuring process and the launch of Codere Online on Nasdaq, and after two complicated years of the pandemic, the company began the year by beginning a new stage, with its portfolio intact and a strengthened financial situation,” read the company update.

“This allows the development of a business plan that returns the group to its growth path, after this period of normalization, with important opportunities especially in Spain, Mexico and in the digital business.”

Last month, Nueva Codere announced that it would be led by Alberto González del Solar and Alejandro Rodino as joint-CEOS, under the chairmanship of former Ladbrokes Plc CEO Christopher Bell.

Further developments saw Nueva Codere disclose that its board had elected Antonio Zafra as Corporate Director of Legal and Compliance, and Fernando Pombo in the Strategy and Corporate Development Department.

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