Spanish gaming group Codere has announced big losses for the third quarter of 2019.
The Madrid-based group has released its full Q3 figures and they show a consistent decline across the board in all areas of operation.
The overall picture is one of decline in all but one South American territory; Uruguay, and a poor performance in the home market of Spain. In total, Codere reported a 3.6% decline in revenue for Q3 down to €343 million compared to €356 million for the same quarter last year.
The results will be particularly disappointing to Codere investors as the Group has taken measures to improve its situation in recent months. They were able to reduce their exposure in Argentina with Codere ARG cutting expenditure by 25% during the trading year, but that wasn’t enough to prevent the impact of devaluation in the PESO, which has hit the company’s assets and value.
Codere ARG revenue dropped by 12.5% to €80 million from €92 million in the third quarter last year, and there was a decline of 14% of Argentina EBITDA.
There was not much good news elsewhere. The firm reported a fall in revenue from Mexico of 7%, down to €76 million in Q3. The company has pointed to a worsening macroeconomic climate and changes to local tax law which has slowed down their expansion of gaming hall operations in the country and resulted in a dramatic drop of operating profits from €21 million in 2018 to €1.5 million.
And in Spain, although the firm has introduced a number of efficiencies to cut costs in its retail operations, Spanish revenue dropped from €47 million in 2018 to €46 million this year, although there was a small rise in operating profits from €800,000 to €1 million.