Codere reports weak first quarter

The Spanish online and land gambling group Codere has posted a dismal set of Q1-2018 results, blaming adverse foreign exchange rates and a drop in LatAm business for its misfortunes.

Highlights of the quarter included:

* Net profit down 70.3 percent y-o-y at just Euro 800,000 (Q1-2017: Euro 2.7 million);

* Operating revenue down 5.4 percent at Euro 363.3 million;

* Operating profit down 22.2 percent at Euro 27.9 million;

* Capex lower by almost 50 percent at Euro 24.2 million, with just Euro 7.8 million devoted to growth projects;

* Earnings down 12.6 percent at Euro 56 million;

* Adjusted EBITDA down 0.4 percent at Euro 67.9 million on margin of 17.7 percent;

* One-off exceptional charges of Euro 11.9 million due to management and efficiency changes;

* Total liquidity of Euro 177.8 million, od which Euro 9.4 millon is in cash;

* Resignation from the board of directors of Joseph Zappala.

Group chief executive Vicente Di Loreto, who took up post in January this year, reported:

“Codere’s focus remains on the profitability of the company, its growth and, therefore, on the creation of value for all its shareholders. As a large company, we are exposed to the fluctuations of currencies in the markets where we operate, but that does not affect our capacity for organic growth and development.

“Proof of this is the good results obtained in European markets. In addition, it should be noted that in these first months of work we have begun an organisational and cultural transformation that will lead us to accelerate the company’s value creation potential.

“This first quarter is only the beginning of this new stage and we are already demonstrating operational improvements and results above expectations.”