Codere improves its profitability in the second quarter of 2019 despite the Argentine crisis

Operating expenses in this quarter decreased 7.8%, to 266.7 million euros, mainly as a result of the reduction in costs in Argentina, due to the devaluation of its currency, and efficiency improvements in Mexico, Spain and other markets.
The CEO of Codere, Vicente Di Loreto, explained that “these results highlight the changes made in recent months, with the implementation of the company's Transformation Plan, and confirm the profitability expectations and the solidity of the main markets of Codere, in spite of the smaller contribution of Argentina ”.

In terms of installed capacity, machine stations grew 0.8%, reaching 56,589 units. In addition, the number of game rooms remained unchanged, at 148, and the number of bars fell slightly, around 9,900.
Mexico, Spain and Uruguay consolidate.

The good performance of Mexico, Spain and Uruguay, as well as that of our online activity, has allowed the company to maintain its profitability in the second quarter of the year. In Mexico, second-quarter revenues have increased 5.3% over the same period in 2018, driven by a growth in the slot park (+ 5.5%).

In Spain, operating income in the second quarter of the year grew 1.2 million euros, 2.6% compared to the second quarter of 2018, driven by revenue growth in face-to-face sports betting and the machine business in bars ; with 19% and 5.8% more units installed, respectively.

Finally, the exposure of Argentina has been reduced, which has gone from assuming 131 million euros of the adjusted EBITDA in 2016 (almost 50% of the consolidated), to around 65 million expected in 2019 (less than 25%), while the rest of the business units have spent in this period contributing 121 million euros to approximately 220.