Grupo Codere SA has posted a net income loss of €117m for year-to-date trading, as group accounts detail dismal H1 2024 results.
However, during the period, the creditors of the heritage Spanish gambling group agreed to a write-off of €1bn in debt, reducing Codere’s outstanding debt to circa €128m mark.
The interim accounts of Codere SA revealed no income growth across all operating markets except for Colombia.
H1 revenues stood at €667m, down 11% from 2023 comparatives of €750m, as Codere’s retail business registered a 16% decline in operating revenues to €560m (H1 2023: €671m).
Codere’s retail business was severely impacted by a 52% revenue decline in Argentina to €79m (H1 2023: €165m), as the group’s former largest operating unit registered a meagre €2m EBITDA contribution.
Investors were informed of “the adverse macroeconomic situation in Argentina, marked by a significant devaluation of the currency and a contraction in consumption, which had a significant impact on the group’s results.”
However, beyond the Argentine headwinds, group accounts revealed no income growth in the key markets of Spain (-5.6%), Italy (-4.8%), Mexico (-8.3%), and Panama (-4.9%).
Stunted income results saw Codere register a 25% drop in H1 EBITDA to €86m (H1 2023: €115m), as period trading registered double-digit EBITDA declines across all South American markets (except Uruguay) – Argentina (-93%), Mexico (-44%), Colombia (-48%), and Panama (-16%).
Group accounts were buoyed by the continued growth of a standalone Codere Online business, registering H1 revenues of €90m and an EBITDA contribution of €12m.
H1’s balance sheet saw Codere reduce its group operating expenditure to €286m, as net income losses were reduced to €117m (H1 2023: €187m).
Codere noted that its group debt stands at €1.2bn ahead of its new arrangement with creditors, under which the company will be further granted €60m in cash in H2.
The debt restructuring will lead to a significant reduction in interest costs as ownership of Codere will transfer to its creditors and to a new group of corporate financiers.
The financial restructuring allows Codere to focus on its strategic growth plans, generating long-term value, and strengthening its position in South American markets without divesting its existing portfolio.