Of the €278.5m in revenue generated for the three months to 31 March, Italy's contribution was the largest. However, as the country was one of the first in Europe to be affected by COVID-19, its total was down 39.4% year-on-year, at €86.5m. Spain, another country badly affected, fell 16.7% to €40.5m.
A further €64.8m came from Argentina, down 19.8%, with Mexico's contribution declining 24.9% to €60.4m. Revenue from Panama, meanwhile, fell 23.2% to €14.6m and Uruguay's total was down 9.6% to €17.0m. Colombian revenue, on the other hand, declined just 0.9%to €4.9m.
Online revenue increased, but at a slower rate than retail's decline. The channel's Q1 total amounted to €16.1m, up 7.6%.
“The impact of COVID-19 on Codere's business has been very significant as it has caused the temporary closure of all face-to-face operations gradually since 8 March,” the operator explained. “Only the online business has continued to operate normally, but this was still strongly affected by the cancellation of major sporting competitions.”
The company is in the early stages of operational recovery, with racetrack operations in Uruguay already launched and route operations in Spain ready to go. The firm expects the reopening process will happen progressively during June and July.
“The group expects to progressively return to our prior revenue run rate in mid 2021 (with higher proportion of online revenues), while achieving c.75% of that by year end. Our cash burn rate will be progressively reduced as we re-open our operations,” the firm stated.
“Codere has also resorted to seeking additional liquidity with the support of financial advisers, with the aim of obtaining an additional €105m that allows the business to face this period of uncertainty, the evolution of the pandemic and its implications on when and under what conditions Codere may reopen its operations, more comfortably,” the company concluded.
Source: GMB / iGB