Codere reports on stable 2022 as focus turns to liquidity injection 

A restructured Grupo Codere has announced that it has “fully consolidated its corporate recovery,” as the group’s financial results match or outperform its 2019 post-COVID performance.

In its full-year 2022 trading update, the Spanish multinational gambling group reported corporate revenues of €1.31bn, reflecting a 68% growth on FY2021 results of €791m and an exact like-for-like match on FY2019 revenue performance.

Headline growth was attributed to the lifting of coronavirus restrictions in venues and the strong recovery in almost all its markets, especially in Argentina and Italy. The company further benefited from a change in ‘revenue recognition’ for its Uruguay business.

Providing a market overview, Codere highlighted its continued recovery in its home market of Spain, where it generated revenues of €173m in 2022, an 18.8% increase compared to 2021, due to the improved performance of sports betting and arcade venues.

Further European highlights saw Codere’s Italian Bingo unit experience an 85.6% growth in revenue, reaching €283m in 2022, driven by the successful performance of VLT and AWP machines.

South American units saw Codere Mexico report revenues of €233m as gaming halls reopened, and the government allowed for promotional and smoking restrictions to be gradually restored.

Significantly, Argentina is restored as Codere’s largest operating unit, providing a revenue income of €347m, up 135.6% compared to COVID-affected 2021 results. This is despite the 2022 World Cup having a “negative impact on billing for the fourth quarter, due to a decrease in visits to game rooms on match days.”

In addition, its separate Codere Online business registered a 45% revenue increase to €116m, attributed to “impressive performance in Mexico and Spain.”

An all-unit recovery saw Codere declare an adjusted EBITDA of €231m, doubling 2021 earnings of €99m but remaining 7% behind FY2019 results of €249m.

The trading update provided no information on FY2022 profits/losses results or the group’s current debt balance. Codere states that “as of December 31, 2022, the group’s cash position was €129m with €76m corresponding to retail and €54m to online.”

Corporate governance maintains that Codere’s current financial prospects have brightened, having secured the support of the majority of its shareholders and bondholders for an additional liquidity financing operation of €100m.

The liquidity transaction has received backing from 99% of the value of the super senior notes, 96% of senior notes in dollars, 94% of senior notes in euros, and 92% of the PIK subordinated notes. The financing agreement is expected to be completed in the second quarter of 2023.

Codere provided no statement on its executive search for a new CEO, following the departure of joint CEOs Alberto González del Solar and Alejandro Rodino, who were relieved from leadership duties as of March 31.