Codere SA’s Performance Declines In Q3

Bolsa Madrid’s gambling group Codere SA records performance declines across all key operating markets by publishing its Q3 trading statement, impacting the company’s corporate recovery.

Reporting reductions across all of it’s South American territories (except for Uruguay) and a stagnant performance in Spain’s home market, Codere posted a 3.6% decline in group revenue to € 343 million (Q32018: € 356 million).

Notwithstanding increasing its exposure to the Argentine market, decreasing ARG investment by 25 percent during year trading (total € 183 m), Codere continues to be impacted by the extreme devaluation of PESO (tracking-64 percent) affecting its assets ‘ output and valuation.

Codere ARG’s revenues fall another 12.5 percent to € 80 million (Q32018: € 92 million) as a result of a breakdown in market performance, with Codere recording a 14 percent decline in ARG’s EBITDA to € 19 million.

In other cases, Codere released its Q3 LatAm income statement reporting a 7% fall in Mexican sales to € 76 million (Q32018: € 81 million), noting that tougher macroeconomic conditions and local taxes had an effect on the growth of the gaming hall with MEX operating profits for the period reduced to € 1,5 million (Q32018: € 21 million).

In Spain, Codere reports stagnant ESP sales of €46 million (Q23018: €47 million) while continuing to deploy efficiencies to lower operating costs across its retail units as its home market division produced operating profits of € 1 million (Q23018: € 800,000).

Codere Governance retains operating costs for the year at €263 million in its consolidated report, increasing year – to-date operating expenses to € 800 million (YTD 2018: € 843 million).

Closing Q3 trading, Codere Governance reports as modified company EBITDA decrease of € 80 million (Q32018: € 93 million) as gross corporate losses rise to € 31 million (Q32018: € 19 million).

Codere Governance published an update on its investigation of’ accounting inconsistencies’ attached to its divisions of Colombia and Mexico published during Q2 trading, in addition to its trading statement.