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Spain – Codere posts profits for third quarter running

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Spanish multinational Codere posted a net profit of €2.7m in the first quarter of 2017, compared to losses of €9m in the same period of 2016, thanks to the increase in revenues and the positive impact of the exchange rate. The results mean that Codere has recorded a profit in the last three quarters having completed its financial restructuring in 2016. However Codere’s debt rose also rose considerably in the same period.
According to the company in a statement, the results between January and March show the strength of its operations in Mexico, despite the devaluation of the currency there, as well as Argentina and Italy despite tax increases in both markets.

According to the communication with the Spanish National Securities Market (CNMV) Codere reported that consolidated turnover amounted to €405m, a 12 per cent increase, due to the growth in Argentina, favoured by the stable exchange rate of the peso against the euro, and in Uruguay, following the acquisition of the additional 50 per cent of Hípica Rioplatense Uruguay (HRU) for €31m in the fourth quarter of 2016. Codere operates directly, or through Hípica Rioplatense de Uruguay (HRU), four racetracks in Latin America: the Hipódromo de las Américas (Mexico), Hipódromo Presidente Remón (Panama) and the Hipódromo Nacional de Maroñas and the Hipódromo de las Piedras in Uruguay. Codere also runs racinos at both racetracks in Uruguay as well and a number of off track betting shops.

In Mexico the company reported income of €81m a 0.2 per cent increase compared to the same period last year. The depreciation of the peso against the euro (9 per cent) neutralised the good performance of slot machines in the Mexican market. Meanwhile in Argentina income increased to €152 million, 21 per cent more than in the same period in 2016, due to the fact that local inflation has not been offset by a devaluation of the peso. In Italy income decreased by 3.7 per cent and stood at €79m due to a reduction in the amounts played. Meanwhile in Spain income improved by 5 per cent to €44m in the first quarter. The results in Spain reflect a solid quarter in the slot machine sector as well as for Bingo Canoe (Codere’s emblematic large scale bingo hall located in Madrid ) but sport betting profits were down due to a number results of a number of sporting events which had been favourable to customers.

Overall gross operating income (adjusted EBITDA) reached €68.1m in the first quarter according to the company statement. However, total financial debt increased by €21.6 million compared to December 2016 and stood at €901.7m.

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