Codere maintains its operating profitability thanks to growth in Mexico and Spain

The company obtained in this period operating income of 357.7 million euros, 6.7% less than in the same period of the previous year due to the fall of 42 million euros in Argentina due to the depreciation of the peso against the euro , which was compensated in a significant part thanks to the positive evolution in Mexico (+7.1 million euros), online activity (+6.1 million euros) and Spain (+3.7 million euros).

Codere has thus achieved a gross operating profit (adjusted EBITDA) of 68 million euros, compared to 67.9 million in the first quarter of 2018, with an increase of 1.3 points in the margin, which reaches 19% .

The net result of the period represents a loss of 3.6 million euros, due to the change in accounting policies and criteria (new lease capitalization rule, which applies from January 1, 2019, and the application of the hyperinflation criterion). Argentina according to the corresponding standard, which the company applies since the third quarter of 2018). Applying the accounting regulations in force last year, and to facilitate comparability, the company would have obtained a positive net result of 2 million euros, compared to 0.8 million in the first quarter of 2018.

Operating expenses in this quarter decreased by 7.3% to 271.8 million euros, mainly as a consequence of the reduction of costs in Argentina, due to the devaluation of its currency. Non-recurring expenses were 3 million euros, significantly below the 11.9 million in the first quarter of 2018.

The general director of Codere, Vicente Di Loreto, has highlighted these results by putting in value the changes undertaken in recent months in the organization. "The data reflects, once again, the impact of the operational and efficiency improvements implemented, and the strength of the company in a severe environment in terms of tax increases, especially in Argentina and Italy, and the devaluation of Latin American currencies", has indicated.