Codere points towards stability reducing interim losses to €8.5m

Publishing its H1 2019 interim results (period ending 30 June), Bolsa Madrid-listed gambling group Codere SA improves its trading stability, reducing corporate losses by 78% to €8.5 million (H12018: -€39m).

As communicated in August, the Spanish gambling group’s period performance would be impacted by Argentina’s volatile economic conditions, which sees Codere record a 6% decrease in group revenues to €712 million (H12018: €759m), as its Argentine division fails to hit the €100 million revenue mark (contribution €80m).

Despite its continued Argentine woes, Codere governance details a number of positives, reporting strong revenue gains across Mexico (€11m) and for its Spanish online gambling unit (€9.7m).

Undertaking a number of group-wide adjustments, Codere lowers its period operating expenses by €44 million (7%) to €538 million (H12018: €583m), reporting savings through reduced taxes and personnel costs.

Closing H1 2019 trading, Codere governance declares an adjusted EBITDA increase of 4% to €138 Million (H12018: €132m), attributed to growth in Mexico, Spain, Uruguay and Colombia offsetting ARG Peso impacts and increased taxes within Italy.

Updating investors, Codere CEO Vicente Di Loreto, detailed confidence in the Bolsa Madrid firm delivering profitability during H2 trading, noting that operational changes undertaken during the first half of 2019, had delivered value outlined by the firm’s guiding transformation programme.

Codere governance continues to seek further LATAM market opportunities, despite the ongoing restructuring of its Argentine unit, with the firm having secured a €1 billion joint-venture agreement with Hard Rock International, which will establish a new casino property within Mexico City.