Codere multiplies its semi-annual losses by more than seven, up to 178
Coder multiplied by more than seven losses during the first half of this year, up to 178 million euros, compared to the ‘red numbers’ of 24 million registered in the same period of 2019, due to the mandatory temporary closures related to the crisis health derived from Covid-19 and an exchange rate loss of 46 million.
Between January and June, the group obtained operating income of 318 million euros, 55% below the previous year, as a result of the temporary closure of the face-to-face business due to the restrictive prevention measures against Covid-19 imposed in all their markets during the second quarter, with only a few businesses open in the month of May (racetracks in Uruguay) and in June (clubs in Italy and Spain).
Likewise, the online business kept revenues flat compared to the first half of 2019, due to the lack of relevant sporting events during this period.
The company achieved an adjusted gross operating result (Ebitda) of 17 million euros, which represents a 90% decrease compared to the previous year, due to the closure of theaters and the expenses it had to bear during the period.
Likewise, the investment during the first half of this year was contained at 21 million euros, considerably less than the 38 million invested in 2019. Almost all of it (18 million euros) was used in maintenance.
In terms of capacity, as of June 30, the company had 30% of operational machines compared to 2019 (17,176 units). The number of gambling halls operating in the period was 13, along with 68 sports betting venues and 8,847 bars.
CONFIDENCE IN IMPROVEMENT
The group has recognized that the impact of Covid-19 on its business has been “very significant” and in this context it launched a contingency plan to preserve its liquidity and guarantee its continuity, achieving a “significant” cost reduction 74% in the second quarter of the year.
Likewise, Codere resorted to the search for additional liquidity to face the closures, reaching a refinancing agreement in July with more than 80% of its corporate creditors.
As of June 30, 2020, Codere had 74 million euros of cash, improving its liquidity position at the end of July, after receiving the first 85 million euros of new financing.
The remaining 165 million are subject to certain modifications to the existing bonds being fulfilled and the company expects to receive them in October once the ‘scheme of arrangement’ procedure initiated in the English Court on September 3 is completed.