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Codere reaffirms its improvement trend with €317.7M in the second quarter

Madrid, September 1, 2022.- Nueva Codere, a leading multinational in the private gaming sector, today announced its results for the second quarter of 2022.

The company has obtained revenues of €317.7M in this period, which reflects a growth of 8.2% compared to the previous quarter and a recovery during the quarter of 91% of revenues prior to the pandemic. Thus, the upward trend is maintained and the group expects to reach 2019 levels before the end of the year.

This revenue improvement has been driven in the physical business by a strong performance led by Argentina. For its part, the Mexican unit has been affected by the slow macro recovery of that market, as well as by greater restrictions on tobacco and commercial promotions; while, In Spain, the results of sports competitions have reduced the percentage of retention of bets, in addition to a lower number of sporting events at the end of the quarter. In turn, the turnover of the online business has grown by 36% compared to the second quarter of the previous year, boosted by Mexico and the good performance of Spain.

In relation to adjusted EBITDA, €47.8M was recorded, slightly below the previous quarter (-1.9%), but €29.7M more than in the same period of 2021. This is due to the strong growth in Argentina during this period and to a lower contribution from Mexico and Spain, a consequence in large part of what was mentioned in the previous paragraph, as well as an increase in energy costs.

Current Situation  the main markets in the second quarter

Mexico reached revenues of €55.4M in this second quarter, which represents 34% more than in the same period of the previous year.
Argentina obtained revenues of €85.9M, which strengthen the sustained growth in billing and the increase in spending per visit month after month.
Spain shows a slowdown in revenue recovery in the quarter mainly due to lower results in the sports betting business in May. For its part, revenues from machines remain stable, while the recovery of bingo has been slightly lower than that of the previous quarter. Despite this, the performance of Spain in this quarter has been 88% compared to the same period prior to the pandemic.
Italy is experiencing a steady recovery in revenue since the reopening of theaters, with revenue increasing 1.2% vs. the first quarter of 2022. Adjusted EBITDA grew 10.7% vs. the previous quarter, mainly due to the cost containment strategy implemented in the country.
The online business, whose results are presented independently and can be consulted at codereonline.com, has obtained €27.4M in revenue in the second quarter. This represents a year-on-year growth of 36%, driven by Mexico and a favorable evolution of Spain.
In terms of park installed, as of June 30, 2022, Codere had 44,223 machines, 140 game rooms, 1,065 arcades, 176 sports betting shops and 8,226 bars.
About Codere
Codere is firmly committed to developing a gaming offer with all the guarantees for the user, and to this end it carries out its activity by implementing the best responsible gaming practices, promoting transparency and promoting public policies that favor user guarantees, ensure the protection of vulnerable groups and ensure the sustainability of the industry.