Codere plans to expand in Latin America and Europe after completing recapitalisation
The gambling operator has reduced its corporate debt from €1.4bn to €190m.
Spain.- The gambling operator Codere Group is turning its attention to plans for expansion in Latin America and Europe after completing a recapitalisation programme that reduced corporate debt from €1.4bn to €190m. Consolidated net debt has been reduced to around €65m to ensure the stability of the company, while an additional €60m in new financing will support growth plans.
The recapitalisation received unanimous support from Codere’s creditors in exchange for ownership of the company. The company has confirmed that consolidated net debt will be half of 2023 adjusted EBITDA.
It said in a statement: “This milestone marks the beginning of a new stage of financial stability and enhances the group’s capacity for growth and long-term value creation. With an optimal debt structure and greater liquidity, Codere is in a position to take advantage of new expansion opportunities in its key markets, thus consolidating its leadership in the sector.”
Codere CEO Gonzaga Higuero described the recapitalisation as a “guarantee for the future that ensures our financial position and relaunches the company’s ability to achieve growth objectives.”
He added: “We appreciate the trust of our clients, the support of our investors and the commitment of our team and we are prepared to generate value for all our stakeholders.”
Grupo Codere reported revenue of €309m for Q2, down 10 per cent year-on-year. It attributed the decline mainly to an adverse macroeconomic situation in Argentina, where inflation has impacted on the cost of living. Revenue from Argentina was down 45 per cent compared to Q2 2023.
However, the company said it expected the second half of the year to mark a transformation in its fortunes in the country. It noted that it had begun to see a recovery in the Latin American country since the start of the current second half, with revenue now growing at above the rate of inflation. Inflation itself has been falling.
