Codere hit by LatAm decline in Q1

Codere has cited a decline across its Latin American operations as the key reason behind a drop in operating revenue during the first quarter of 2018.

Operating revenue amounted to €383.3m ($458.4m) in the three-month period, down 5.4% on €405.1m in the opening quarter of last year.

Codere said the struggles in Latin America were “driven by an adverse evolution of most local currencies and the US dollar versus the euro”, but added that these were “partially offset by revenue increases in Spain and Italy”.

In constant currency terms, group revenue would have increased 11.2% year-on-year.

Meanwhile, operating profit fell by 2.2% from €35.8m to €27.9m, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 0.4% from €68.1m to €67.9m.

Codere said its adjusted EBITDA result was “especially remarkable”, due to the increased gaming tax implemented in Italy and Argentina in Q2 of last year, as well as adverse foreign exchange trends that have resulted in the devaluation of the US dollar and Latin American currencies.

Elsewhere, net income slipped 70.3% from €2.7m in Q1 of 2017 to €800,000 in the most recent quarter.

Related article: Codere posts revenue, profit growth in 2017