The company said that its business was closed in Italy for the entire quarter but towards the end of the period there was evidence of a recovery as operations reopened in some areas. New closures had come into effect in Mexico, Argentina and Panama.
Codere announced its creditors have approved a plan to take control of its business as the operator's financial struggles continued in Q1, with revenue down 54.3% to €127.2m (£109.9m/$155.1m) amid venue closures in almost all of its key markets.
The company said that the decline in revenue was due to “the restrictive measures adopted in many countries in response to the health crisis”.
This included Codere’s operation in Italy, Codere’s largest market, being closed for the entire quarter, generating no revenue after €60.2m in Q1 of 2020.
It also had to deal with new closures during the quarter in Mexico, Argentina and Panama, plus further restrictions elsewhere. Mexico revenue was down 63.5% to €22.1m, Panama revenue dropped 60.1% to €5.8m and Argentina revenue declined 41.4% to €38.0m.
In Spain, Codere’s second-largest market in 2020, revenue was down 34.3% to €26.6m.
The operator’s online business was more successful, but failed to outweigh the retail declines, with revenue up 23.6% to €19.8m.
“The group’s business continues to be affected by the impact of the pandemic, which continues to be severe in many of the countries where the company operates,” the company stated.
The operator also announced that 90% of its bondholders have now agreed to a debt capitalisation deal in which Codere’s current business will be brought under a new holding company, which will be 95% owned by those bondholders.
As the deal has now passed the necessary 75% approval mark, it is set to come into effect. Codere shareholders approved the deal earlier this month. This deal will capitalise €367m worth of debt. In addition, Codere will raise a further €225m to keep itself afloat until its venues may reopen.
Codere operates over 50,000 gaming machines, 30,000 seats in bingo halls and 7,600 sports betting terminals across Latin America, Spain and Italy.
Source: GMB / iGB
