Codere battered by collapse of Argentine Peso

Spanish gaming firm Grupo Codere was battered by the collapse of the Argentine Peso according to a report submitted to Spain’s National Securities Market Commission, Comisión Nacional del Mercado de Valores (CNMV), which detailed the first nine months of the group’s fiscal year.

Key performance highlights include:

An 8.2 percent decline in operating income to Euro 1,115 million was attributed to a significant drop in revenues in Argentina due to the sharp devaluation of the Argentine Peso against the Euro, partially offset by increased revenues in Spain and Italy.

At a constant exchange rate, the Group said operating income would have grown by 10.4 percent compared to 9M/2017.

Adjusted EBITDA of Euro 203.6 million, an increase of 1.8 percent was described as “remarkable” taking into consideration higher taxes in Italy and Argentina, and unfavourable trends in exchange rates.

Adjusted EBITDA margin was 18.3 percent, 1.8 percentage points higher than 9M/2017 due to margin increases in all Codere’s operations in Latin America.

Changes in leadership back in January 2018 led to non-recurring items amounting to Euro 30.8 million.

Group net revenue declined 14 percent to reach Euro 285 million (Q3 2017: €333m).

Net revenue year to date 2018 was a loss of Euro (55) million (9M/2017: Euro 8. 3 million)