Codere loses 56% of its income as of September due to Covid restrictions
Codere obtained some organizational chart during the first nine months of the year of 461 million euros, 56% below the previous yearas a consequence of the temporary closures related to the COVID-19 pandemic, which meant the closure of the face-to-face operation for most of the second quarter, with progressive reopenings from June in Europe, and throughout the third quarter in Latin America.
The company reached a Adjusted EBITDA of 28.6 million in the accumulated of the year, 88% less than that achieved in the same period of the previous year, due to the aforementioned closures, which implied significant losses in the second quarter. The company returns to positive results in the third quarter thanks to contributions from Spain (11.4 million), Italy (5.1 million), Uruguay (4.2 million) and online activity (2.7 million).
In the first nine months of 2020, the company reflected a loss of 240 millioncompared to the 54 million losses registered in the same period the previous year, as a result of the impact of the pandemic in the different markets and the devaluation of Latin American currencies against the dollar and the euro.
Reactivation of the third quarter
The company closes the third quarter with cash and cash equivalents of 120 million euros compared to 103 million at December 31, 2019, which reflects, in addition to additional financing, the good performance of its operation since the reopening of Spain, Italy and Uruguay.
Once the refinancing process was completed in October, and after payment of the coupon, the company’s cash position was strengthened, amounting to 148 million euros.
Likewise, in a context of maximum preservation of liquidityinvestment in this period was reduced to 25 million, 55% below 2019, with 21 million for maintenance and 4 million for growth projects.
In terms of capacity, As of September 30, 2020, the company had 25,067 operating machines45% of its capacity at the end of 2019, although this figure increased considerably in October with additional openings in Mexico, Colombia and Panama
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