Codere revenue drops 5.4% in Q1 2018

By Harrison Sayers

Spanish-based international gaming operator Codere saw a $9.45m decrease to its operating profit during Q1 2018 and a 5.4% decline to its operating revenue as net income totalled just $957,000 for the period.

Operating revenue declined $26m from $483.38m in Q1 2017 to $457m in Q1 2018, representing a 5.4% year-on-year reduction.

The main area of operation behind the falling revenue was Codere’s Argentinean operations which plummeted by 19.4%. Despite the decline it is still Codere’s largest revenue source at $146.41m.

Company operating profit also decreased by $9.43m to $33.29m, accompanied by a decrease to its profit margin from 8.8% to 7.3% in Q1 2018.

Codere would have reported group revenue growth of 11.2% in constant currency terms, however, the company was heavily affected by 'an adverse evolution of most local currencies’ as well as the changing value of the US dollar against the Euro.

Indeed, currency value fluctuations left Codere’s net income totalling just $957,000 for the period compared to $3.22m during Q1 2017, while adjusted EBITDA also decreased by $240,000 to $81.02m.

However there were positives for the company during the quarter, including its European operating revenues in Italy and Spain which increased collectively by 11.7% from $145.93 in Q1 2017 to $163.12m in Q1 2018.

Codere’s Italian segment was able to secure its position as the company’s second largest source of revenue bringing in $101.9m leapfrogging the Mexico segment which saw its revenues decline by 3.1% to $94.15m.

The home market of Spain was the largest source of growth for revenue as its total increased by 17.3% to $61.21m.


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