Zona de Azar Spain – Codere Reports €309M Revenue in Q2 2024

Spain.- September 10, 2024 www.zonadeazar.com Codere, a leading entertainment and gaming multinational, today reported its financial results for the second quarter of 2024. The company reported revenues of €309 million in the period, down 10% year-on-year, while adjusted EBITDA declined by €12 million to €39 million.

These deviations are largely due to the adverse macroeconomic situation in Argentina, marked by a significant currency devaluation and a contraction in consumption, which had a significant impact on the group’s results (EUR 40 million of revenues in the quarter, 45% lower than in the same period of the previous year). However, the last few weeks have seen a partial recovery, with revenues growing above inflation, suggesting that the second half could mark a positive turning point.

In Mexico, although most operations have normalised, there are still some minor constraints that affected the profitability of the business in the quarter (EUR 6.6 million of adjusted EBITDA in the quarter, 50% less than in the same period of the previous year). Despite this, signs of recovery are also beginning to show, reinforcing the expectation of a stronger performance in the coming months.

Robust performance in Spain and Online
Spain, although reporting slightly lower revenues than the previous year, has seen a 3% growth in EBITDA, evidencing an improvement in profitability. Codere Online, meanwhile, continues to stand out with a 39% year-on-year growth in revenues to 54 million euros.
54 million euros in the quarter. In Mexico, Codere Online revenues grew 57% year-on-year to €28.2 million, while in Spain, revenues grew 25% to €21.8 million.

Strong cash position and recapitalisation underway
In terms of cash position, the company closed the quarter with a solid cash position, with 55 million euros in retail and 40 million euros in Codere Online, increased by the receipt of 20 million euros in July as part of the group’s recapitalisation process. The company has maintained a conservative liquidity management strategy, pending the closure of the recapitalisation process.

The global recapitalisation of the company, agreed with creditors in June and approved in July, will be completed in the coming weeks and represents a fundamental step for Codere, reinforcing its capital structure and allowing the organisation to focus on its growth plan, consolidating its position in the market and marking the beginning of a new stage for the group.

Edited by @pererarte   www.zonadeazar.com