Grupo Codere SA reported a net loss of €117 million ($125 million) for the year, reflecting weak financial results for the first half of 2024.
However, during this period, the company’s creditors agreed to write off €1 billion ($1.07 billion) of debt, reducing Codere’s outstanding debt to about €128 million ($137 million).
Interim reports showed flat revenues in most markets, with the exception of Colombia.
Revenue for the first half of the year was €667 million, down 11% from 2023, when it reached €750 million ($804 million). This decline is due to a 16% drop in operating revenue from Codere’s retail business to €560 million ($600 million) (H1 2023: €671 million ($719 million).
The company’s retail business was particularly hard hit in Argentina, where revenue fell 52% to €79 million ($85 million) (H1 2023: €165 million), and the group’s largest division contributed just €2 million ($2.1 million) to EBITDA.
Investors were informed of the “unfavourable macroeconomic situation in Argentina, marked by a significant currency devaluation and a reduction in consumption, which had a significant impact on the group’s results.”
However, in addition to the difficult situation in Argentina, the group’s reports did not record revenue growth in key markets: Spain (-5.6%), Italy (-4.8%), Mexico (-8.3%) and Panama (-4.9%).
Weak revenue results saw Codere record a 25% drop in H1 EBITDA to €86 million
($91 million) (H1 2023: €115 million ($123 million)), as trading for the period recorded double-digit EBITDA declines in all South American markets (excluding Uruguay) – Argentina (-93%), Mexico (-44%), Colombia (-48%) and Panama (-16%).
Group accounts were supported by continued growth in Codere Online’s standalone business, recording revenue of €90 million ($96 million) in H1 and an EBITDA contribution of €12 million ($13 million).
On the H1 balance sheet, Codere reduced its group operating expenses to €286 million ($307 million) as net profit losses narrowed to €117 million EUR (125 million) (H1 2023: EUR 187 million ($201 million).
Codere noted that its group debt stands at €1.2 billion ($1.28 billion) ahead of a new agreement with creditors that will provide the company with an additional €60 million ($64 million) in cash in the second half of the year.
The debt restructuring will result in a significant reduction in interest expenses as ownership of Codere will transfer to its creditors and a new group of corporate financiers.
The financial restructuring allows Codere to focus on its strategic growth plans, creating long-term value and strengthening its position in the South American markets without divesting its existing portfolio.
Don’t forget to subscribe to our Telegram channel!
