Codere Records 14.4% Rise in Revenue

Spanish operator Codere sees 14% increase in revenue for 2016.

Spanish-headquartered multinational corporation Codere, one of the major Latin American operators, has published the figures for 2016.

Revenue of €1.8 billion is a year-on-year increase of 14.4%  when compared to 2015. Apart from operating in Europe, the company has a significant presence in Argentina, Mexico, Uruguay, Colombia, Panama and Brazil, offering gaming terminals, bingo hall, betting venues, casino and race tracks.

Rise in Investments

The company increased its earnings before interest, taxes, depreciation and amortization by 16.7% to €343.9 million, while the total investments surpassed €120 million, but nearly two thirds of this amount was used for maintenance of gaming halls, mostly in Europe, Mexico and Argentina.

Codere Chairman and Chief Executive Officer, Jose Antonio Martinez Sampedro said  the company’s investments had increased in order to recover the competitive capacity of the Group. He pointed out that €120.2 million allocated for investments in 2016 represents an increase of 82.4% when compared  to the year before.

Codere used some of the funds to capitalize debts in Uruguay-based Carrasco Nobile, where the Group now owns 100% of the share capital. €31 million were spent in the purchase of the remaining 50% of Hipica Rioplatense, another company from Uruguay.

Martinez Sampedro also stated the Group had renegotiated the Hotel Casino Carrasco fee, which should help in improving the negative results of this historic venue in Montevideo.

Results in Individual Markets

Argentina achieved a year-on-year increase of 18.5%, generating income of €538.9 million, with revenues also going up in Spain. Income of €170.3 recorded in the Group’s home market is 9.2% more than in 2015.

Drop in revenue was recorded in Mexico (7.2% down to €329.8 million), Panama (5.1%), and Colombia (13.9%). Carrasco casino earned 3.52% less than in 2015, for a total of €13.7 million, with the volatility in the VIP sector being the main reason for such a poor result.

Martinez Sampedro said the Group had ambitious plans for the future. Back in November, Codere signed a sponsorship deal with one of the greatest football clubs in the world, Real Madrid, for three seasons. According to Sampedro, this move should play a key role in the company’s development plans in the near future.

He added he was confident in the success of the Group not only in 2017, but also in the years to come.