Codere SA’s 2019 Auditing Restructures Impact Revenue

Publishing its full-year 2019 operating results, Bolsa Madrid gambling group Codere SA reported net corporate losses of € 62 million, reflecting an improvement of 32 percent over the accumulated loss of € 47 million posted by the organisation during FY2018.

Codere investors had little to smile on as the competitive operator reported declines across all core operating indicators, showing a 6% decrease in group sales to € 1.38 billion (FY2018: € 1.47 billion).

The Spanish operator has attributed its ongoing declines to’ macroeconomic drifts ‘ impacting its position in the Argentine market. Codere reported a depreciation expense of € 90 million, following another ARG Peso collapse recorded during trading in 2019.

In 2019, Codere Governance affected the earnings ability of the company by sanctioning a review of the accounting systems of the group, increasing the operating costs of the business, together with higher tax rises across its core markets.

Publishing its earnings results, Codere reported a 12 percent decline in group ‘adjusted EBITDA’ to € 250 million (FY2018: € 282 million), as corporate governance claimed that the declines in Argentina and Mexico ‘ neutralised’ all growth verticals.

Codere Governance noted that the company has kept capital spending below the € 100 million level by implementing cost controls that limit expenditure in subsidiaries and eliminate’ recurring payments.’

Closing its accounts for 2019, Codere Governance announced a company with a cumulative loss of € 19 m for year trading. Net losses increased to € 62 million, however, as Codere opted to absorb the costs of company audit consolidation during fiscal trading in 2019.