Spanish and Latin American-facing gaming operator Codere Group has recorded a 14 per cent drop in gross gaming revenue to €313.8 million in the first quarter of 2024.
While benefiting from a record performance from its Codere Online division, Retail revenue declined by 19 per cent to €260.8 million in the first quarter, with Uruguay the only country to post year-on-year revenue growth, up 4 per cent at €17.4 million.
Codere said that ongoing restrictions in Mexico pushed revenue down 11 per cent at €54.0 million, and the challenging macroeconomic environment in Argentina led to a 59 per cent drop in revenue to €34.6 million.
In Italy, revenue was down 3 per cent at €78.3 million, while Codere’s home market of Spain contributed revenue of €53.6 million, a fall of 7 per cent year-on-year. Colombia & Panama revenue declined by 3 per cent to €22.8 million.
Excluding Mexico and Argentina, Codere’s Q1 revenue would have been 4 per cent higher year-on-year.
Q1 2024 Gross Gaming Revenue Comparison (€m)
| Q1 2024 | Q1 2023 | % Change | |
| Spain | 53.6 | 57.5 | (7%) |
| Italy | 78.3 | 80.4 | (3%) |
| Uruguay | 17.4 | 16.7 | 4% |
| Colombia & Panama | 22.8 | 23.5 | (3%) |
| Argentina | 34.6 | 84.7 | (59%) |
| Mexico | 54.0 | 60.9 | (11%) |
| Total Retail | 260.8 | 323.6 | (19%) |
| Codere Online | 53.0 | 39.5 | 34% |
| TOTAL | 313.8 | 363.1 | (14%) |
Gaming taxes fell by 20 per cent to €96.5 million in the first quarter, while revenue sharing remained at the same level as last year at €41.5 million and other deductions were €10.6 million.
As a result, net revenue declined by 12 per cent to €185.9 million for the quarter, comprising €155.5 million from Retail (-18 per cent) and €30.4 million from Online (+39 per cent).
Adjusted EBITDA for the quarter was 27 per cent lower than the prior year period at €47.3 million, including €8.8 million from Codere Online.
“The group’s adjusted EBITDA in the first quarter of the year shows the gradual recovery of the business after the progressive elimination of restrictions in Argentina and Mexico, increasing that obtained in the third quarter of 2023 by 12 per cent,” said the company.
“The group is making progress in talks with its bondholders to undertake a comprehensive recapitalization that will drastically reduce its debt and definitively strengthen its balance sheet.”
As at 31 March the company held cash and cash equivalents of €104.0 million compared to €107.5 million at the end of 2023.