Codere, the operator of casino games, reported a total revenue of €594.6 million in its latest financial results. Out of this total, €154.7 million came from Italy, experiencing a decline of 54.9%. Spain emerged as Codere’s second-largest revenue source with €116.4 million, down 38.7%. The revenue from Mexico decreased by 68.2% to €97.8 million. Argentina, previously a significant market for Codere, saw a revenue drop of 77.7% to €70.7 million, while Uruguay experienced a decrease of 29.6% to €52.3 million. Panama contributed €22.7 million, showing a decline of 71.0%, and Colombia brought in €8.7 million. Additionally, Codere generated €71.3 million from its online operations.
In terms of operating expenses, Codere’s total expenditure was €572.1 million, which is 46.6% lower than the previous year. This included gaming taxes amounting to €223.9 million, down by 54.8%. Personnel costs dipped by 32.1% to €162.5 million, costs of goods sold decreased by 45.1% to €27.9 million, and other expenses dropped by 35.4% to €158.5 million. After accounting for depreciation and amortisation of €159.6 million, down 11.4%, and non-recurring expenses of €42.6 million (a 32.5% increase from 2019), Codere recorded an operating loss of €193.4 million, compared to a profit of €94.3 million in the previous year. After adjusting for inflation, this loss amounted to €204.0 million.
Codere then recorded a net financial loss of €57.5 million, resulting in a pre-tax loss of €261.5 million, nearly eight times greater than in 2019. After taxes, Codere’s overall loss reached €236.6 million, reflecting an increase of more than 280% compared to the previous year. These losses have put significant pressure on Codere’s liquidity, prompting the operator to seek assistance from financial advisors to explore alternative strategies for enhancing liquidity and improving its capital structure.
Codere has engaged in “constructive conversations” with an ad hoc committee of senior notes holders to investigate possible alternatives and expects to reach an agreement in the coming weeks. This agreement aims to provide a solid foundation for the recovery of operations across all markets, according to Codere’s statement. The operator had already addressed liquidity concerns in July 2020 through a refinancing transaction with noteholders representing 55.5% of its existing notes. However, these notes initially carried an interest rate of 12.75%, which could later be reduced to 10.75%.
