Driven by robust revenue growth in the third quarter, posting €233.3m for the period — up by 63% from 2020 — Codere is on track for a strong recovery from Covid.
With Argentina having eased restrictions in July, Q3 marked the first time that its complete operating portfolio was fully reopen since the start of the pandemic.
As a result, Codere has begun to mitigate some of its Covid-era losses. The closure of its physical properties across Latin America led to a marked drop in revenue for Q3 2020, but since reopening, its LatAm business has roared back to life.
In the third quarter of last year, Codere’s Latin American operations reported €20.9m in revenue. This has since risen by more than 430% to €110.9m. Its European segment meanwhile remained largely stable, going from €103.5m in 2020 to €103.2m.
However, despite making significant strides in Q3, Codere has not managed to shake off Covid’s lingering effects. For 9M 2021, the company generated a net loss of €243.4m, up from the 2020’s €239.7m figure, which the company attributes to closures in the first half of the year.
Operating expenses, excluding depreciation and amortisation, have also risen as a result of reopening. In the third quarter, they amounted to €200.4m, an almost 45% increase from Q3 2020’s €138.4m sum. The company also noted that, despite being reopen across all markets, it is still operating under restrictions in certain places.
Codere’s Q3 results come amid a major bond restructuring deal, which would have seen the company hand control to its creditors on 5 November, but it was recently postponed until 19 November.
