Codere, the gaming enterprise operating in Spain, Italy, and South America, witnessed a substantial surge in its third-quarter revenue, climbing by nearly half compared to the previous year, hitting €343.4 million. This represents a notable recovery, restoring the company to pre-pandemic levels.
Codere’s robust performance in the third quarter was propelled by expansion in South America, particularly in Argentina. The removal of Covid-19 limitations in venues enabled Codere to observe a strong resurgence across nearly all markets.
The company’s modified earnings before interest, taxes, depreciation, and amortization (EBITDA) also experienced a significant climb, increasing by 75% to €57.4 million. This was primarily attributed to the robust performance in Argentina and other South American nations.
Codere’s EBITDA margin also saw an improvement, reaching 16.7% in the third quarter. This signifies a 2.6% increase compared to the same period in the previous year.
Across all South American markets, Codere observed revenue growth. Argentina witnessed the most substantial increase, with revenue soaring by 146% to €98.6 million, exceeding pre-pandemic levels. This was driven by an elevation in average player spending per visit. Comparable trends were observed in Panama and Uruguay, where revenue attained 98% and 116% of pre-pandemic levels, respectively.
In spite of this, Codere’s operations in some regions, while expanding compared to the same time period last year, have not fully rebounded to pre-pandemic levels. Growth in Mexico was slower, with income increasing by 44.2% year-over-year to €61.4 million, only 81% of pre-pandemic levels. Codere attributed this to promotional limitations and the effect of indoor smoking bans.
Codere specifically emphasized the slow growth in Mexico in its Q4 2021 report.
“The market is recovering at a slower rate than other areas due to the continued presence of operating and capacity restrictions, as well as the sluggish economic recovery in the country,” Codere stated in its Q4 report.
The company’s European operations have also struggled to reach pre-pandemic revenue levels. Spain’s total was €40.7 million, 88% of the third quarter of 2019, while Italy’s total was €68.2 million, only 83% of pre-pandemic levels.
Reorganization
Since November 2021, Codere has been led by new leadership after its creditors took control of the company. Control 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 company’s online division has been separated through a SPAC merger, which was finalized a few weeks after the formation of Codere New Topco. The business also released its results today (November 16), reporting income of €28.9 million.