Codere shows signs of recovery after reopening business in Latin America

Codere is confident of recovering from the difficulties imposed by COVID-19, having identified a backlash in Latin American countries as jurisdictions gradually reopen after months of blockade.

Providing a financial update for the first nine months of 2021, the Spanish gaming group explained that it generated total revenue of €499.6 in September this year, an increase of 8.5%.

Codere also revealed that it was closing the period with €86 million in cash, having posted a net loss of €243 million compared to €240 million in the corresponding period in 2020.

Meanwhile, adjusted EBITDA grew 90% to €54.4 million, which Codere attributed to ‘best results in all markets’, with the company’s EBITDA margin increasing by 4.7% to 10.9% as a result of “ business reactivation and the rigorous efficiency measures implemented throughout this period”.

The reactivation of the company’s operations in the third quarter of 2021 was identified as the main reason for the beginning of its recovery, with the reopening of markets in the countries of Argentina and Uruguay.

Of the group’s business units, Mexico, Argentina, Spain and its online divisions achieved strong performances, with growth rates of 50%, 26%, 22.5% and 22%, respectively.

However, Italy and Uruguay continued to present some hurdles due to vaccination certification requirements in the former and the closure of Hotel Casino Carrasco in the latter, although the company predicts the casino could resume operations this month.

Codere expects to complete structural processes in November

Finalizing his update, Codere detailed that he also hopes to complete the $350 million merger of his online games subsidiary with SPAC DD3 Acquisition Corp. II later this month to create an online gaming platform aimed at Latin America listed on Nasdaq.

In addition, the group also stated that its extensive bond restructuring will also be finalized on November 19th. This process was initially announced at the end of April, following an agreement with its shareholders for a cash injection of €225 million.