LatAm foul play adds €15m losses to Codere 2019 accounts

Commissioned by Codere SA governance, ‘Big 4’ accountancy EY has confirmed a total impact of €15 million losses attributed as ‘intentional LatAm inconsistencies’ which will be accounted for in the Bolsa Madrid gambling group’s full-year 2019 results.

October trading saw Codere declare to Spain’s CNMV markets authority that year-to-date accounts had been overstated by a reported €13-20 million attached to the firm’s LatAm business unit.

The embarrassing chapter would see Codere governance launch an internal investigation led by management consultancy Alvarez-&-Marsal which revealed approximately €14 million in ‘inconsistent earnings’ primarily attached to the firm’s Mexican gambling subsidiary.

Codere governance maintains that the firm’s manipulated accounts were ‘coordinated by a small group of people working in Mexico’– ‘without the knowledge of corporate management in Madrid’.

In its November update, Codere governance confirmed that it had sanctioned a review of its ‘corporate structure’ related to corporate leadership and internal systems and controls.

The Bolsa Madrid firm had commissioned EY to review its 2019 corporate accounts, concluding further net losses €15 million recorded during H12019 trading – a period in which Codere governance detailed stability reducing its losses to €8.5 million.

However, posting dire Q3 trading in which the company recorded declines across all major operating territories, the embattled Spanish gambling group would see its 2019 losses widen to €33 million.

 

Check Also

Betsson rides high on global profile following record Q3 performance

Betsson AB has continued its strong 2020 momentum after the Stockholm-listed online gambling group backed …

ANJ deepens Police cooperation with casino and racetrack security

L’Autorité Nationale des Jeux (ANJ), France’s new unified gambling regulatory authority, has entered into a …

Giancarlo Sergi: Education is a key factor in combating match-fixing

The most effective way to combat match fixing is to ensure that players are educated …