LATAM woes see Codere track year losses of €240m 

Embattled Spanish gambling group Codere SA has published its Q3 2020 earnings report, revealing that its year-to-date corporate net losses currently stand at €240 million. 

The Bolsa Madrid gambling firm continues to absorb COVID-19 impacts following a staggered reopening to its South American gambling venues, combined with severe LATAM currency fluctuations against the US dollar.

Despite reopening its European (Spain and Italy) betting shops and bingo halls in June, Codere has seen its YTD group revenues shrink to €460 million, down 56% on corresponding 2019’s €1.045 billion.

A summary of 2020 performance noted that Codere had seen its gaming capacity significantly reduced to just 45% against its 2019 metrics, with the company limited to operating its gaming venues across Spain, Italy and Uruguay ‘to a lesser extent’.

Codere has continued to be hampered by the enforced closure of its Argentine gambling venues that have contributed no revenues since Q1 trading. Furthermore, the company was also impacted by delayed re-openings to its Mexican and Colombian subsidiaries.

Across its operating units, Codere has implemented a ‘cost containment programme’ which saw its group operating expenses reduced to €432 million, down 47% on 2019’s €808 million.

However, despite significantly reducing its operating expenditures, the firm’s disrupted revenue channels saw Codere’s EBITDA reduced to €1.4 million, down €211 million against 2019 results

During the trading period, Codere secured a refinancing transaction of €165 million that was used to repay its outstanding senior note debt coupons issued during 2016.   

Closing its trading statement, Codere outlined that as of 30 September the Bolsa Madrid group maintained cash equivalent holdings of €120 million.