Codere backs business plan despite 2018 dramas

Embattled Bolsa Madrid gambling firm Grupo Codere SA closes its full-year 2018 accounts reporting group-wide losses of €40 million, primarily attributed to significant Argentine market adjustments.

Reported throughout 2018, Codere has been forced to navigate the +100% collapse of the Argentine Peso against the Euro, with the gambling group detailing FX losses of circa €34 million.

In its Argentina market breakdown, Codere reports 30% revenue decline to €407 million combined with an EBITDA decreased to €80 million (FY2017: €121m), within its largest operational market.

Unable to escape its Argentine woes, Codere reports a 10% decline in full-year group revenues to €1.4 billion (FY 2017: €1.6bn) recording double-digit decreases across all top-line metrics and KPIs.

Despite implementing a ‘cost savings deployment’ during the course of 2018, in which Codere reports corporate expenditure down to €249 (FY 2017: 290 million), the Spanish operator reports a continued FY 2018 EBITDA decline to 227 million (FY 2017: 246m).

Furthermore, Updating investors on its credit profile, Codere sees its total corporate debt capacity expand to 863 million.

In its Q4 2018 trading notes, Codere governance details that despite its Argentine downturn, the company will continue to deploy its business plan, with Codere awaiting further commercial launches in Colombia and Mexico.

Entering 2018, Codere governance is reported to have presented its ‘2021 Horizon’ corporate transformation plan to investors, detailing that the company will execute a full digital make-over, combined with securing more licenses in Mexico and expanding the business within Brazil.

For its action plan, Codere governance is reported to seek a further €200 million in working capital to finance its initiatives.

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