Codere eyes 2022 uptick amid continuing COVID recovery

Aspire Global “will become a clearly focused B2B company and even stronger and more profitable,” Tsachi Maimon, group CEO, confidently assures

Aspire Global “will become a clearly focused B2B company and even stronger and more profitable,” Tsachi Maimon, group CEO, confidently assures

Codere has detailed its continuing recovery following the multiple challenges endured during recent times, with an optimistic outlook offered for the remainder of the year. 

The Spanish gambling firm has disclosed that revenue through the fourth quarter of the past year reached €291m, which it says represents 117.3 per cent year-on-year growth as well as “a recovery of 85 per cent of the group’s turnover prior to the pandemic in the same period of 2019”.

Adjusted EBITDA reached €45m during Q4 2021 with a margin of 15.5 per cent, which Codere reports as its highest since 2020’s first quarter and aligns to “the result of the efficiency measures implemented”.

“Currently, Codere keeps its operations open in all its markets, and despite the impact of the Omicrom 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,” an update issued by the company reads.

Across the online ecosystem, the group says that it recorded a “positive performance” led by revenue growth of ten per cent quarter-on-quarter and 46 per cent when contrasted with the same period two years earlier. 

Across European land-based operations, revenue through Q4 in Spain reached €42m, an improvement of 31.6 per cent from Q4 2020 and representing almost 90 per cent of 2019’s figure, with Italy coming in at €75m, an increase of over €50m YoY.

In Mexico, where Codere says recovery “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,” revenue reached €54m, more than double that of one year earlier but representing 74 per cent of its pre-pandemic level.

With respect to the other retail markets of the group, Argentina scored 87 per cent of what of achieved through Q4 2019 to close at €66m; Uruguay reached €12.6m, six per cent up YoY; Panama doubled its 2020 figure to close at €16.5m, recovering 89 per cent of revenue prior to the pandemic; and Colombia came in at €4m.

“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,” the Codere update continues. 

“This allows the development of a business plan that returns the group to its growth path, after this normalisation period, with important opportunities especially in Spain, Mexico and in the digital business.”

Furthermore Neuva Codere, the operator previously known as Grupo Codere, has also confirmed a pair of appointments in a bid to reinforce its management team following the appointment of a new board of directors in February 2022 in a bid to revitalise the business.

This has seen Antonio Zafra named as Corporate Director of Legal and Compliance, with Fernando Pombo becoming Corporate Director of Strategy and Corporate Development.

Author: Ava Harvey