Argentina’s economic woes cost Codere Group €40m in Q2
The Spanish gaming group recorded revenues of €309m in Q2 to 30 June 2024, representing a year-on-year decrease of 10%.
The drop, it said, was largely due to the adverse macroeconomic situation in Argentina, marked by a significant devaluation of the currency. The situation in Argentina cost the company €40m during the quarter, with proceeds from Argentina down 45% compared to Q2 2023.
Looking ahead in Argentina, Codere said: “A recovery is beginning to be noted in the second half of the year. Revenues [are] growing above inflation, suggesting that the second half of the year could mark a positive turning point.
Codere EBITDA suffers in Mexico
Adjusted EBITDA was down by around 23% to €39m.
Codere saw a 50% drop in EBITDA to €6.6m in Mexico. This was, it said, due to minor restrictions that continue to affect business profitability.
While it did not publish full figures for Spain or Mexico, it said the former saw lower revenue figures than the previous year.
It said Spain reported slightly lower revenue than the previous year, although there was a 3% growth in EBITDA, evidencing an improvement in profitability.
The group said signs of recovery are beginning to show and a more solid performance in the coming months is expected. Despite the decreased earnings, the group is outperforming its 2024 budget.
Codere Online, the online division that was spun off, generated a 39% year-on-year growth in revenue, reaching €54m in the quarter. In Mexico, Codere Online revenue grew by 57% year-on-year to €28.2m, while in Spain growth was 25%, reaching €21.8m.
In May headwinds in Mexico and Argentina resulted in Q1 revenues slipping 14% year-on-year to €313.8m. The group’s adjusted EBITDA for Q1 also fell 26.6% from €64.4m to €47.3m.
In June, Codere said it will undergo a recapitalisation agreement to reduce its corporate debt by €1.2bn to €128m and add €60m in new financing.
A statement by the group said the move to cut debt would enable it to focus on fulfilling its strategic plans for growth and long-term value.
Codere closed the quarter with cash reserves of €55m in retail and €40m in Codere Online.