JUE 28 DE MARZO DE 2024 - 19:25hs.
It discards buying CIRSA

Codere expects legalization in Brazil to develop online gaming

The company, which has a new management team since last Friday, ruled out growing through purchases and is not interested in participating in Cirsa's open sales process but in taking away market share. Codere wants to grow in markets such as Mexico and Italy and trusts that a new regulation of the activity in Brazil will allow the development of the Internet area for online gaming.

Codere has a new management team from this past Friday, headed by Norman Sorensen as the new president, and Vicente di Loreto as CEO of the company, who have substituted with the support of the funds to the previous managers, the Martínez Sampedro family.

The company discards growing through purchases in the next few years despite having in the capital some of the largest investment entities in the world, such as Prudential, and is not interested in participating in Cirsa's open sale process but in taking away a share of market.

The new managers of Codere are now given a period of two or three months to prepare a new business plan that will focus on the development of online gaming and that is expected not to be very disruptive with what was previously. The company plans to allocate around 20 or 25 percent of the gross profit to the maintenance capex.

According to sources close to the firm, the intention is to develop the Internet area in markets where possible. In fact, the company has just obtained the license in Colombia. Codere wants to grow in markets such as Mexico and Italy and trusts that a new regulation of the activity in Brazil will allow the development of this sector.

One year without dividends

The company will continue, at least, one more year without paying dividends and plans to reduce its level of debt little by little in the next two years.

The new management of the gaming company considers that it will be possible to deepen and further develop the agreement that maintains its sponsorship with Real Madrid.

The company dismisses major employment adjustments and the new executive team will review the management structure to make it more flat and agile when making decisions.

Codere will also maintain the business of the bingos, although it considers that its importance will be less in the upcoming years.

Fonte: GMB / Eleconomista.es