Codere revenue drops 11% to $735.8M in H1 amid weak trading conditions

Spanish gambling group Grupo Codere SA posted a net loss of €117 million ($129 million) for the first half of 2024, as weak trading conditions hit revenues across its core markets. However, the company has significantly reduced its debt burden following a €1 billion ($1.1 billion) debt write-off agreement with creditors.

H1 revenues declined 11% year-on-year to €667 million ($735.8 million), down from €750 million ($826.8 million) in 2023, driven by poor performance in Codere's retail business, which saw a 16% drop in operating revenues to €560 million ($617.4 million). The company’s largest market, Argentina, suffered a 52% fall in revenue to €79 million ($87.09 million), largely attributed to a challenging economic environment.

"The adverse macroeconomic situation in Argentina, marked by a significant devaluation of the currency and a contraction in consumption, had a significant impact on the group’s results," the company said.

Codere also faced revenue contractions in other major markets, with declines in Spain (-5.6%), Italy (-4.8%), Mexico (-8.3%), and Panama (-4.9%). As a result, the group's EBITDA dropped 25% to €86 million ($94.8 million), with significant double-digit declines across South American markets, excluding Uruguay.

Despite these challenges, Codere Online, the company’s digital arm, posted €90 million ($99.2 million) in revenues for the period, contributing €12 million ($13.2 million) in EBITDA.

Codere's debt has been reduced to €1.2 billion ($1.3 billion), and the company will receive an additional €60 million ($66.1 million) in cash during the second half of 2024 as part of its restructuring deal. This financial overhaul is expected to lower interest costs and transfer ownership to its creditors and a new group of corporate financiers.

The restructuring also allows Codere to maintain its existing portfolio and focus on its growth plans as it aims to strengthen its position in South American markets.