Codere obtains 55% less in revenues than the previous year, due to Covid-19

The group obtained operating revenues during this period 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 the Covid-19 imposed in all its markets during Q2, with only some businesses open in the month of May (Uruguayan racetracks) and in June (Italian and Spanish racetracks). 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 EBITDA of 17 million euros in the first half of 2020, which represents a 90% decrease in relation to the previous year, due to the closure of rooms and the expenses it had to bear during the period.

The net result for the first half of the year reflects a loss of 178 million euros, as opposed to the 24 million euros loss recorded for the same period in 2019, as a result of the compulsory temporary closures related to the healthcare crisis and an exchange rate loss of 46 million euros.

Investment in this period in 2020 was contained at 21 million euros, considerably lower than the 38 million invested in 2019. Almost all of it (18 million euros) was spent on maintenance.

In terms of capacity, at the 30th of June the company had 30% of machines in operation compared to 2019 (17,176 units). The number of gaming rooms in operation during the period was 13, together with 68 sports betting shops and 8,847 bars.

Confidence in improving the international scenario
The impact of the Covid-19 on Codere's business has been very significant and in this context, the company implemented a contingency plan to preserve its liquidity and guarantee business continuity, achieving a significant cost reduction of 74% in the second quarter of the year.

Likewise, Codere resorted to the search for additional liquidity* to face the closings, reaching in July a refinancing agreement with more than 80% of its corporate creditors. At the 30th of June 2020, Codere had 74 million euros in cash, improving its liquidity position at the end of July, after receiving the first 85 million euros of new financing. The remaining 165 Million Euros are subject to certain modifications to the existing bonds, and the company expects to receive them in October once the scheme of arrangement procedure started in the English Court on September 3rd is completed.