Positive LatAm developments drive Codere’s Q1 2023 growth

Grupo Codere closed Q1 2023 in a strong financial position according to the firm’s latest quarterly trading update, with Latin American markets key growth drivers. 

The multinational gambling group reported an year-on-year revenue uptick of 19% to €350m (Q1 2022: €283m), with adjusted EBITDA up 20% to €65m (€52m) with a margin of 19%, one percent higher than the year prior.

Codere stated this revenue growth was ‘mainly as a consequence of the good performance in Argentina and Mexico’. The group’s cash position at the end of the three-month period was €122m, divided between €73m for the retail segment and €49m for Codere Online.

This follows the publication of Codere Online’s own financial update in May, which saw revenue grow 57% year-on-year to €37.6m (Q1 2022: €23.9m), driven by a ‘solid performance’ in Mexico and Spain.

Breaking down Q1 trading market-by-market, Codere explained that in its home-market of Spain – where it is registered on the Bolsa Madrid exchange – revenue grew 6% to €46m (€43m). 

Its second European market, Italy, Codere’s turnover increased 5% to €72m (previously €68.4m), which it acknowledged was less so than other countries due to game restrictions in the Lazio region.

Across the Atlantic in Latin America, Mexican revenue increased 31% from €45m to €65m, whilst in Argentina income rose 19% from €70.5m to €87m, which the firm stated was due to ‘an upward trend in the machine business’.

Lastly, Uruguay was described as having demonstrated ‘positive evolution’ and Panama ‘stands out’, with respective turnover increasing 33% and 17% to €19m (€16m) and €18m (€15m). The group’s performance in Colombia was not as positive, however, falling by 10% from €5m to €4.5m.

The operator concluded its trading update referring to a deal recently reached with stakeholders to invest €100m into implementing its business plan. 

Codere stated that the plan in question “implies the group’s commitment to consolidation and return to value creation in all the geographies in which it operates”.