Covid-19 hits Codere hard in first half

Codere's revenue for the first half amounted to €317.6m.
Codere's revenue for the first half amounted to €317.6m.

The Spanish operator saw revenue fall 54.7 per cent with declines in every market and region.

Spain.- The embattled Spanish operator Codere saw revenue take a battering in the first half due to retail shutdowns and sports suspensions as a result of the pandemic.

Revenue for the six months to June 30 fell 54.7 per cent year-on-year to €317.6m.

The operator, which has a strong presence in Latin America and Southern Europe, saw declines in every market and in every region.

Latin America accounted for the largest proportion of revenue but its contribution fell by 56.7 per cent to €175.0m as operations everywhere but in Uruguay remained suspended for the entire second quarter.

The biggest fall in the region was in Panama where revenue fell 61.7 per cent to €14.7m. Revenue from Mexico dropped 60.7 per cent to €62.3m.

Argentine revenue fell 59.7 per cent to €64.8m and Colombia’s contribution dropped 48.5 per cent to €4.9m.

In Uruguay, the hit was less severe since Codere also has racetracks in the country and was able to resume operations in the second quarter but revenue still fell 24 per cent to €28.3m.

In Europe, Codere was able to resume operations in Spain and Italy in June but revenue for the entire six months took a similar hit to Latin America.

Italian revenue fell 61.1 per cent to €66.8m and Spanish revenue fell 52.2 per cent to €46.0m.

The operator’s online business continued operating through the pandemic but due to the suspension of sports events revenue grew by just 0.1 per cent to £29.9m.  

The one upside was that pandemic caused Codere’s operating expenses to fall 44.7 per cent to €301m. All the same, the operator’s operating losses increased to €90.7m. 

Pre-tax losses increased from €2.9m in H1 2019 to €179.9m. Net loss leapt from €23.9m to €177.6m.

Codere has reopened more venues in the current quarter. Thirty gaming halls have reopened in Mexico and venues in Colombia have reopened with the exception of those in the capital Bogota.

In July, Codere reached a refinancing agreement to generate €156.4m in liquidity although costs to resume activity in Latin America will dent liquidity. In June, it gained a €120m credit line.

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finance results Spain