Codere Reports Decreased Q1 Revenues, Cites Challenges in Mexico and Argentina

Codere announced that their revenues have dropped in the first quarter and mentioned difficulties in Mexico and Argentina as reasons.

Codere, a company that operates in the gambling industry, has announced that its earnings have gone down in the first quarter compared to last year, mostly because of financial troubles in Mexico and Argentina. Their income decreased from €363.1 million to €185.9 million. The company’s profits before interest, taxes, depreciation, and amortization, which gives an idea of overall financial performance, also dropped by 26.6%, moving down from €64.4 million to €47.3 million.

Key Financial Highlights

• Consolidated net revenues for Q1 decreased to €185.9 million, a 12.1% fall.
• Adjusted EBITDA dropped to €47.3 million, marking a 26.6% decline.
• Despite revenue drops, cash position remained stable at €104 million.
• Expectations exist for a recovery due to the lifting of restrictions in Mexico and Argentina.

Codere made less money because of problems in Mexico and Argentina. Argentina's economy is struggling, and this affected how much money Codere earned. But things might get better because restrictions in these places are starting to lift, and that could mean Codere will earn more money as the year goes on.

Without counting Mexico and Argentina, Codere's business looks stronger. Ignoring these countries, the company's money coming in and its core profits both went up – with revenues increasing by 4% and core profits going up by 20%.

Codere Online has had great success with its earnings climbing to 53 million euros in the first quarter, a 34.2% increase compared to last year. This boost in income was mostly due to more people in Mexico using their online services, along with a good performance in Spain.

The online division did really well, partly because we did more marketing in Mexico and Spain. Because of this, we have a lot more active customers now—about 25.2% more than last year. Using better marketing strategies helped us keep our old customers and find new ones.

Codere Online is doing well at the start of the year, so they have raised their net gaming revenue forecast. At first, they thought they would make between €185 million and €200 million, but now they think it will be between €195 million and €210 million. This change shows they expect to grow more and make better profits this year.

Retail stores struggled more than online shopping. In Argentina, they made a lot less money. Mexico’s stores also earned less, and even though Italy has the biggest market and Uruguay didn't change as much, both still faced some issues.

Codere has enough money on hand and is taking steps, such as talking with the people who own their debt to rearrange it, to potentially improve its situation. The company is doing better because of its online business and might continue to improve if its physical stores recover. Right now, Codere is being careful but hopeful about its financial future.