Codere’s main markets all undergo 2022 revenue growth

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Codere has declared that all of its main markets have achieved growth in the past year in its 2022 financial report.

Publishing its 2022 financials, the group earned €1.31bn in 2022 revenue, up by more than 67.5 per cent year-over-year thanks to COVID restrictions being lifted and a strong recovery in all markets, especially in Argentina and Italy.

The company also noted that due to a revenue recognition criteria adjustment in Uruguay, an increase in revenue compared to the previous year has occurred.

Codere witnessed growth across all its main markets in 2022, with Argentina producing the most revenue and achieving the biggest YoY increase. 

Operations in Argentina generated €346.9m in revenue, up 135.6 per cent YoY. However, turnover in Q4 was negatively impacted by the World Cup as the country’s victorious campaign caused game room attendance on match days to drop.

Italy followed Argentina with €283.4m in revenue, an 85.6 per cent increase YoY following good results from machines (VLT and AWP) and bingo.

Mexico was next with €233m in revenue, growing by 45.7 per cent YoY following the reopening of all gaming halls in the country and recovery from promotional and smoking restrictions.

Revenue in Spain improved in 2022 as well, rising by 18.8 per cent YoY to €172.9m following the good performance of machines and sports betting.

Elsewhere, Uruguay operations achieved a turnover of €69.9m, up 92.4 per cent YoY, “mainly due to the accounting recognition of income in HRU and the good performance of the tables at the Casino de Carrasco”. 

Panama operations earned revenues of €71.9m, a 48.5 per cent increase YoY due to a strong recovery and the opening of a new gaming hall. Meanwhile, Colombia operations recovered well too, with income growing by 39.9 per cent YoY to €20.8m.

Codere’s online business also saw revenue growth in 2022, rising by 45.1 per cent YoY to €116.1m thanks to Mexico and Spain operations providing solid performances.

The company’s adjusted EBITDA rose to €231.9m, €133m higher than the previous year, with a margin of 17.6 per cent, up five percentage points YoY thanks to good outcomes in Argentina and Italy.

However, Codere noted that the adjusted EBITDA figure isn’t fully comparable since there were closures of gaming rooms in 2021, whereas operations were running from Q2 2022 onwards.

As of December 31, 2022, the group’s cash position was €129.9m, with retail €76.1m and €53.8m online.

In total, the company currently has 46,409 machines, 143 gaming rooms, 1,039 arcades, 174 sports betting venues and 8,108 bars.

Codere added that, on March 29, the company reached an agreement with shareholders and bondholders for additional liquidity financing worth €100m.

With the majority support of Codere’s capital, the company has begun implementing its new business plan and the modification of certain terms of existing notes, which is expected to be completed in Q2 2023.