Nueva Codere recovery outlook bolstered by positive Q1 results

By | May 13, 2022

Nueva Codere has declared that it is on course to match its ‘pre-pandemic’ financial performance as the Spanish and LatAm gambling group begins to benefit from its corporate restructuring. 

Trading in its new identity, following its delisting from the Madrid Bolsa and the demerger of the Codere Online unit – Nueva Codere has announced that it has achieved corporate revenues of €293 million for Q1 2022 trading.

The improved revenue results see Nueva Codere ‘recover 83% of group turnover’ prior to the global COVID-19 pandemic impacting its business.

The recovery is attributed to the lifting of covid venue restrictions of the firm’s land-based properties operating in Spain and South America.

In its home market of Spain, Neuva Codere registered a 63% uplift in revenues to €44 million – a result that matched 90% of pre-pandemic turnover recorded during 2019.  

The reopening of franchises across Mexican provinces saw Nueve Codere record Mexican unit revenues of €50 million, beginning its market recovery from blighted circumstances in 2021.

Despite the reopening, Mexican results were “below expectations due to the presence of some health restrictions and the slowdown in the Mexican economy.”

Meanwhile, in Argentina, Nueva Codere’s biggest operational market – Argentine unit revenues reached €73 million, with results tracking at 91% of 2019 pre-pandemic performance.

Nueva Codere noted better than anticipated Argentine results in light of continued macro-economic variables impacting the unit’s day-to-day financial outcome.

The recovery of Spanish, Mexican and Argentine units saw the group declare an adjusted EBITDA result of €49 million (Q1 2021: €45m) – a result that reflects a group operating margin of 16.6%.

Nueva Codere continues to implement its group-wide recovery programme across all markets operating its land-based gambling venues/franchises in Europe and South America.  

Further corporate developments saw Nueva Codere appoint former executives Alejandro Rodino and Alberto Gonzalez as joint CEOs.

The leadership duo has been charged with developing Nueva Codere’s ‘2022-to-2026 business plan’ that is currently being reviewed by the new Chairman Christopher Bell to present to company bondholders, continuing the firm’s reorganisation.   

 

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