Codere sees H2 as “positive turning point” for Argentine gambling revenue
The Spanish gambling group’s revenue was down by 10 per cent in Q2.
Spain.- Grupo Codere has 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.
“A recovery is beginning to be noted in the second half of the year. Revenue is growing above inflation, suggesting that the second half of the year could mark a positive turning point,” the company said.
However, Argentina wasn’t the only market to present challenges for Codere in Q2. EBITDA was down 50 per cent year-on-year in Mexico due to restrictions affecting profitability. The group said revenue from Spain was also down slightly, although EBITDA grew by 3 per cent. Overall group adjusted EBITDA was down by 23 per cent at €39m.
The group said it expects improved performance in the current half and that it continues to outperform against its 2024 budget. Meanwhile, Codere Online generated revenue of €54m in the quarter, up 39 per cent year-on-year. In Mexico, revenue was up by 57 per cent at €28.2m, while revenue from Spain rose by 25 per cent to €21.8m. Codere Online has increased its full-year 2024 net gaming revenue forecast to a range of €205m to €215m and adjusted EBITDA to a range of €2.5m to €7.5m.
In June, Codere Online appointed three new members to its board of directors. Gabriel Saenz de Buruaga, Taavi Davies and Claude Noesen replace Patrick Ramsey, Michal Elimelech and Laurent Teitgen. Codere Group CEO Gonzaga Higuero was re-appointed and will serve as chairman.
