The group achieved an adjusted EBITDA of 47.7 million euros in the first quarter of 2020, 41.1% less than the previous year, due to the drop in income as a result of the complete closure of its on-site operations due to the restrictions imposed on the COVID-19.
As of March 31, 2020, Codere had 150.1 million euros of treasury, with which it will face the payment of the coupon of its bonds within the grace period. The contingency plan implemented by the company to mitigate the impact of the global health crisis has managed to reduce the group's fixed expenses by more than half during closings.
HIGHLIGHTS
-Strong early year performance in most of our markets, with revenue and margins up from prior periods. Specially positive in Sports Betting related businesses, including online. As anticipated, start of the year in Mexico and Italy affected by tax increases in those jurisdictions.
-Since late February in Europe and early March in America, the attendance and revenue numbers started to reflect the impact of the Covid-19 news.
-Progressively during the month of March the authorities in all jurisdictions in which we operate issued regulation that forced us to close our venues. By the end of the month our only activity generating revenues was online.
-In early April the company launched different initiatives to maximize available liquidity and reduce fixed costs for as long as these administrative measures lasted. As a result, we have been able to reduce our fixed costs by more than 55% (mitigating significantly EBITDA losses in April and May) and the cash burn to c.€20-25 mm per month.
-The liquidity position remained strong at March 31st at €150 mm (after fully drawing on the SSRCF) and the expect is to end May at €111 mm, c.€83 mm after the payment of coupon on the bonds (effective on May 30th).
-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 company expects the reopening process will happen progressively during June and July.
-The company 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.
- CODERE has launched initiatives to increase our liquidity at least €105 mm to help us address the final stages of the quarantines and the reopening and normalization period. This incremental liquidity will be raised using the available room in the senior secured facilities basket in the indenture of the bonds and working on our local debt facilities.
REPORT
18+ | Juegoseguro.es – Jugarbien.es
