Codere expects pre-pandemic levels of revenue by end of 2022

Codere has stated it expects its revenues to recover to pre-pandemic levels by the end of the year after recording a significant YoY revenue growth in Q4 2021.
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Codere has stated it expects its revenues to recover to pre-pandemic levels by the end of the year after recording a significant year-on-year revenue growth in the fourth quarter of 2021.

Publishing its Q4 2021 results, Codere declared revenues of $321.6m, representing YoY growth of 117.3%, as well as an 85% recovery of the group’s turnover in 2019 before the pandemic.

The company maintained a positive adjusted EBITDA trend during Q4, as ‘efficiently implemented measures’ helped it reach $49.7m and a margin of 15.5% – the firm’s highest quarterly performance since Q1 2020.

Broken down per market, Codere’s operations in Mexico reached revenues of $59.7m, which although doubled its performance a year ago, was only able to hit 74% of its pre-pandemic level.

The firm noted that Mexico’s recovery has been slower than other regions due to the “continuity of operating and capacity restrictions, as well as the country’s slow macroeconomic recovery”.

As for the rest of the company’s Latin American operations, Argentina saw revenues of $72.9m (87% of Q4 2019); Uruguay hit revenues of $13.9m (6% more than Q4 2020); Panama accomplished an $18.2m revenue, (twice as much as in Q4 2020, recovering 89% of revenues before the pandemic); and Colombia recorded revenues of $4.4m.

Meanwhile, in Europe, Codere’s operations in Spain reached revenues of $46.2m in Q4, a 31.6% improvement YoY, and almost 90% of its Q4 2019 revenues. Italy had revenues of $82.9m, which was $55m more YoY.

The company’s online business also had a “positive performance”, as revenue grew by around 10% compared to Q3 2021, and a 46% improvement compared to 2019.

Codere noted it expects to recover its level of income to pre-pandemic levels by the end of 2022 despite the impact of the Omicron variant earlier this year.

Codere said in a statement: “With the culmination of its financial restructuring process and the launch of Codere Online on Nasdaq, and after two complicated years of the pandemic, the company began the year by beginning a new stage, with its portfolio intact and a strengthened financial situation.

“This allows the development of a business plan that returns the group to its growth path, after this period of normalization, with important opportunities especially in Spain, Mexico and in the digital business.”

Codere has also confirmed a pair of appointments – Antonio Zafra as Corporate Director of Legal and Compliance, and Fernando Pombo as Corporate Director of Strategy and Corporate Development – to reinforce its management team following the appointment of a new board of directors in February 2022.