As the Bolsa Madrid group prepares to dispose its Codere online unit, Codere SA works to limit the impact of COVID-19 pandemic restrictions on its business lines.
Following approval from its board of directors, Codere released its results for the first half of 2021, revealing that the firm generated €266 million in revenue, a 16 percent decline from the previous year.
Still feeling the effects of the global pandemic in H1, the company’s Italian operation remained closed until June, while temporary closures and operational restrictions were in place in Mexico, Argentina, Uruguay, and Panama.
As a result, the group’s operating income in the first half declined by €51.3 million to €266.3 million, representing a 16.2 percent decrease over the same period last year. The biggest drops were in Italy (€54.7 million), which was closed from October to June last year, and Argentina (€23.4 million), which was closed for practically the whole second quarter.
Furthermore, operating expenses fell by €48.8 million (-16.6 percent) year over year, despite the fact that “volatility of activity during the semester has made it difficult to align fixed costs with income generation,” according to the business.
As a result of the foregoing, the company’s adjusted EBITDA for the first half of this year was €21.5 million, down 10 percent from 2020.
The corporation lost €168.7 million in the first half of 2021, compared to €177.6 million the previous year. As of June 30, 2021, the company had €93.1 million in cash.
The Codere board of directors is continuing to work on the financial reorganisation announced in April, with the goal of completing it in October.
Codere ended H1 trading by announcing that it had filed an F-4 registration with the Securities and Exchange Commission (SEC) describing its plans to list its ‘Codere Online’ company on the Nasdaq in the United States.
The IPO will be led by SPAC partner DD3 Acquisitions Corp, and Codere will relinquish its entire stake in its internet business, which will operate as a separate entity.
The debt holders of Codere, who have $700 million in outstanding liabilities, have approved Codere Online’s IPO request.