Codere obtains 318 million income in the first half of the year, 55% less than the previous year, due to the impact of Covid-19

The group obtained 318 million euros in operating income during this period, 55% below the previous year, as a result of the temporary closure of the land-based business due to the restrictive prevention measures against Covid-19 imposed on all its markets during Q2, with only some businesses open in May (Uruguay racetracks) and June (Italy and Spain venues). 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 decrease of 90% compared to the previous year, due to the closure of gaming halls and the expenses it had to make during the period.

The net result for the first semester reflects a loss of 178 million euros, compared to the 24 million losses recorded in the same period of 2019, as a result of the mandatory temporary closings related to the health crisis and a loss due to currency exchange of 46 million.

The investment in this period of 2020 was contained at 21 million euros, considerably lower than the 38 million invested in 2019. Almost all of it (18 million euros) was used for maintenance.

In terms of capacity, as of June 30, the company had 30% operating machines compared to 2019 (17,176 units). The number of gaming halls operating in the period was 13, along with 68 sports betting venues and 8,847 bars.

Confidence in the improvement of the international scenario
The impact of 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 had to look for additional liquidity to face the closings, reaching a refinancing agreement in July with more than 80% of its corporate creditors. As of June 30, 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 are subject to certain modifications to the existing bonds being fulfilled, and the company expects to receive them in October once the scheme of arrangement procedure initiated in the English Court on September 3 is completed.