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Codere recovers 85% of its pre-covid income

Madrid, March 31, 2022.- Codere, a leading multinational in the private gaming sector, today announced the results for the fourth quarter of 2021, approved yesterday by its Board of Directors.

The company reaches revenues of €291M in 4Q2021, which represents a year-on-year growth of 117.3% and a recovery of 85% of the group's turnover prior to the pandemic, in the same period of 2019.

Adjusted EBITDA also maintains its positive trend, reaching €45M in 4Q2021. The company obtained an adjusted EBITDA margin of 15.5% in the period, the highest since 1Q2020, highlighting the result of the efficiency measures implemented.

Situation of the main markets in 4Q 2021

Spain reaches revenues of €42M in this fourth quarter, an improvement of 31.6% compared to 4Q2020, and almost 90% of its revenues in 4Q2019.

Italy had revenues of €75M, more than €50M above those obtained in 4Q 2020, despite the mandatory Covid passport imposed by the authorities.

Mexico reached revenues of €54M, doubling those obtained in 4Q2020, but at 74% of its pre-pandemic level. The recovery in this market has been slower than in other geographies due to the continuity of operating and capacity restrictions, as well as the country's slow macroeconomic recovery.

Argentina, a country also affected in its macro variables, reaches revenues of €66M, 87% of what was obtained in the same period of 2019.

With respect to the other retail markets of the group, Uruguay reaches revenues of €12.6M, 6% more than in 2020; Panama achieves a turnover of €16.5M, twice as much as in 4Q2020, recovering 89% of revenues prior to the pandemic; and finally the income from Colombia was €4M.

The online business also had a positive performance, with revenue growth of around 10% compared to the previous quarter, and an improvement of 46% compared to the same period in 2019.

In terms of park installed, as of December 31, 2021, Codere had 42,642 gaming terminals, 4,216 bingo stalls, 8,342 bars, 7,980 sports betting machines, 656 gaming tables, 1,128 arcades, 190 sports betting points, 140 game rooms and 4 racetracks.

Currently, Codere keeps its operations open in all its markets, and despite the impact of the Ómicrom variant at the beginning of the year, the company expects to recover its level of income prior to the pandemic by the end of this year.

A reinforced management team for the new stage of the company

With the culmination of its financial restructuring process and the launch of Codere Online on Nasdaq, and after two complicated years of the pandemic, the company began the year by beginning a new stage, with its portfolio intact and a strengthened financial situation. This allows the development of a Business Plan that returns the group to its growth path, after this normalization period, with important opportunities especially in Spain, Mexico and in the digital business.

La Nueva Codere, in addition to having a robust corporate governance, with the constitution of its new Board of Directors chaired by Christopher Bell -who brings more than 30 years of experience in the industry-, reinforces its management team with the incorporation of new profiles that consolidate the capabilities of the group.

Antonio Zafra, Corporate Director of the Legal and Compliance Area

Thus, Codere has recently incorporated Antonio Zafra Jiménez as corporate director of the Legal and Compliance Area.

State Lawyer on leave of absence, Zafra has a degree in Law from the University of Granada and PADE from the Instituto de Empresa. He has held positions of great relevance, both in the public and private sectors. He has extensive experience in similar functions, most recently at Bankia -now CaixaBank-, as well as at Iberia. In addition, he held the position of Chief of Cabinet of the Undersecretary of the Ministry of Economy, and was also Secretary of the Board and Director of Legal Advice of the ICO. He is also the author of several publications related to bankruptcy legislation, transparency and good governance, among other matters.

Fernando Pombo, corporate director of Strategy and Corporate Development

Codere has also appointed Fernando Pombo as corporate director of Strategy and Corporate Development of the group.

With a degree in Business Administration, a Master's in Finance and specialized training in mergers and acquisitions from Wharton, Fernando has developed a professional career of more than 25 years, with a main focus on consulting (Arthur Andersen/ Ernst & Young), strategic planning, control of management and finance (CFO of various companies in the last 10 years). More than seven have been at Codere in the past, carrying out various responsibilities in the Economic-Financial Department, both at the corporate level and in Latam.

  • This note contains information derived from Codere's financial statements included in the 'Q4 2021 Earnings Results' published on 03/31/2022, not independently audited. The financial information by business area is presented in accordance with generally accepted accounting principles and Codere's internal criteria, so it may differ from the audited financial information that the Codere Group will present in April 2022.

About Codere

Codere is a leading international gaming operator, with a presence in seven countries in Europe – Spain and Italy – and Latin America – Argentina, Mexico, Panama, Colombia and Uruguay, which operates gaming machines, bingo stalls and terminals omnichannel sports betting, both through the online channel and through points of sale that include game rooms, arcades, bars, betting rooms and racetracks.