Codere recovers with Latin America’s reopening
Codere is confident of recovering from the COVID-19-induced headwinds, having identified a rebound in Latin American nations as jurisdictions progressively reopen after months of closure.
The Spanish gaming firm stated in a financial statement for the first nine months of 2021 that it had achieved a total income of €499.6 as of September 2021, a rise of 8.5 percent. Codere also stated that the company ended the year with €86 million in cash, having suffered a net loss of €243 million, compared to €240 million in the same period in 2020.
Meanwhile, adjusted EBITDA increased by 90% to €54.4 million, owing to ‘best results in all markets,’ with the company’s EBITDA margin increasing by 4.7 percent year on year to 10.9 percent as a result of the “reactivation of the business and the rigorous efficiency measures implemented throughout this period.”
The reactivation of the firm’s activities in the third quarter of 2021 has been highlighted as the key cause for the commencement of its recovery in the latter stages of the year, beginning with the reopening of the national markets in Argentina and Uruguay.
Mexico, Argentina, Spain, and the group’s online divisions saw the most success, with growth rates of 50 percent, 26 percent, 22.5 percent, and 22 percent, respectively, while overall turnover ended September climbed by 18 percent over the first nine months of 2020.
Nevertheless, due to vaccine testing standards in the former and the closure of the Hotel Casino Carrasco in the latter, Italy and Uruguay have continued to offer some challenges, but Codere anticipates that the casino will be able to continue activities this month. Codere also stated that it plans to finalize the $350 million mergers of its online gaming unit with SPAC DD3 Acquisition Corp. II later this month, creating a Nasdaq-listed Latin America-facing web-based gambling platform – Codere Online.
Furthermore, the business insists that its significant bond restructuring will be completed by November 19th. The reorganization was first announced at the end of April as a consequence of an agreement with its shareholders that would result in a €225 million financial injection.
A condition of the agreement between the firm and its shareholders would be that it be dissolved and its resources moved to the new organizational structure to assure its flexibility.