Codere, the gaming firm operating in Spain, Italy, and Latin America, witnessed a substantial 47.2% surge in third-quarter revenue compared to the previous year, reaching €343.4 million (£300.7 million/$357.8 million), a level comparable to pre-pandemic figures.
Codere’s third-quarter revenue mirrored pre-pandemic levels, fueled by robust growth in Latin America.
The significant revenue increase was primarily driven by the easing of in-venue COVID-19 restrictions, resulting in a rebound for Codere in nearly all markets.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) experienced a 74.8% jump to €57.4 million, compared to €24.6 million in the corresponding period last year. Codere’s strong performance in Argentina and other Latin American nations was a key factor contributing to this outcome.
The company’s adjusted EBITDA margin also saw a 2.6% increase to 16.7% in the three months concluding on September 30, exceeding the same period in 2021.
Codere’s revenue saw an upward trend across all Latin American markets, with Argentina exhibiting the most notable growth, soaring 146% year-on-year to €98.6 million, reaching 122% of pre-pandemic levels. A crucial factor was the rise in average player expenditure per visit within the country. This pattern was replicated in Panama, where total revenue reached €19.2 million, 98% of 2019 levels, and Uruguay, where total revenue reached €21 million, rebounding to 116% of pre-pandemic revenue.
In spite of this, Codere’s operations in certain markets, although expanding in comparison to the same period last year, have not fully rebounded to pre-pandemic levels. Expansion in Mexico has been comparatively sluggish, with income rising by 44.2% year-over-year to €61.4 million, only 81% of pre-pandemic totals. Codere attributed this to negative effects from promotional restrictions and indoor smoking prohibitions.
In the final quarter of 2021, Codere specifically identified Mexico as a slow-growing nation.
Codere stated in its fourth-quarter report: “The recovery in this market has been slower than other regions, due to the continuous existence of operational and capacity limitations, as well as the gradual macroeconomic recovery in the nation.”
The company’s operations in Europe have also struggled to reach pre-pandemic revenue totals. Spain totaled €40.7 million, only 88% of the third quarter of 2019, while Italy’s €68.2 million was only 83% of pre-pandemic revenue.
Reorganization
Since November 2021, Codere has been under new leadership after its company creditors took control. Management of the business has been transferred to a new holding company called Codere New Topco SA, which is owned by a group of former Codere bondholders.
Meanwhile, the business’ online division was separated through a SPAC merger, which was finalized a few weeks after Codere New Topco was established. The business also released its results today (November 16), reporting revenue of €28.9 million.
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