Codere reports 54% Q1 revenue decrease as Covid-19 misery mounts
First quarter adjusted EBITDA plummets by 93% annually as Italy and Latam closures prove costly
Codere has reported a 54.3% decrease in Q1 2021 revenue to €127.2m as the company fails to recover from Covid-19 retail closures.
The operator’s Italian operations remained closed in Q1, while the recovery of revenue in reopening regions was negated by fresh closures in Latam across Mexico, Argentina and Panama.
Revenue from Codere’s domestic Spanish market was also reduced by 34.3% to €26.6m.
The company expects to fully resume operations between June and July of this year, although reopening could take longer in Argentina.
Aside from Italy, where revenue fell by €60.2m year-on-year, all of Codere’s operating markets recorded positive EBITDA in Q1.
Despite this, overall adjusted EBITDA only reached €3.5m in Q1 amid an annual decrease of 92.7%.
Codere recorded a Q1 loss of €91.5m, mainly as a result of Covid-19 closures, increased expenditure on financial liabilities and the devaluation of operating currencies against the dollar.
To try and rectify this dire financial situation, the operator has reached an agreement with its creditors to inject up to €225m into the group and capitalise up to €367m of current debt.
This financial package, which has now been agreed by shareholders, will cover Codere’s liquidity requirements until total reopening of the business has been achieved.