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Codere reports 54% drop in Q1 operating revenue

Spanish gaming company Codere has revealed how significant of an impact the Covid-19 pandemic has had on its finances. 

Spain

For the first quarter of 2021, operating revenue was down by 54.3% to €127.2m ($155m) due to Covid-19 related closures and operational restrictions.

The company’s Italian retail operation remained closed during the entire quarter, and operations in markets such as Mexico and Panama were also heavily affected with restrictions and closures.

Adjusted EBITDA for Q1 2021 reached €3.5m, this is a 92.7% drop when compared to the first quarter in 2020. Codere adds that all markets except Italy contributed to positive EBITDA.

Despite the implementation of significant cost saving and efficiency measures, the adjusted EBITDA margin dropped to 2.7%, 14.4% lower than Q1 2020.

Closures across the board meant Codere experienced a net loss of €91.5m during the first quarter, stating that the increase in interest expense and devaluation of operating currencies vs the dollar added to this loss.

As of December 31, 2020, Codere had €110.3m in cash and equivalents; after the first three months of 2021 this dropped to €58.4m.

The active number of slots by the end of March was 30,201, which represents all markets except Italy and Uruguay.

In terms of venues, the gaming provider had 114 gaming halls, 975 arcades, 182 sports betting shops and 5,864 bars in operation.

In April, Codere announced  it has entered into a lock-up agreement with its largest noteholders, to support restricting transactions for the group.

The group also entered into note purchase agreements that will provide it with an additional liquidity of €100m, with €30m being received in April.

During the same month, creditors stepped in and Codere's share price plummeted.

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