Codere divulges Covid-19 damage as H1 losses spiral to €178m

Codere has reported a first-half loss of €178m for 2020 as the Spanish operator continues to feel the full financial force of the coronavirus pandemic. The figure represents a dramatic downturn on the €24m loss recorded in the same period last year, driven by the closure of betting venues due to Covid-19 and exchange rate losses of €46m. H1 adjusted EBITDA sank 88% to €17m, down from €141m in 2019, while first-half revenue fell by 55% to €318m. Codere implemented emergency cost-saving measures in Q2 to the tune of €70m, representing a year-on-year cost reduction of 74% for the quarter. Q2 passed with all venues closed and very few live sporting events, until Uruguayan racetracks reopened in May and some Italian and Spanish venues returned in June. The operator has now reopened all operations in Spain, Italy and Uruguay to provide some light at the end of the tunnel, as well as a partial reopening in both Mexico and Colombia. In July, Codere moved to protect its financial position by cutting a deal with some of the largest holders of its €750m of bonds for a new funding lifeline. Under the plan, to date signed by more than 80% of bondholders, the operator reached an agreement to immediately obtain €85m of liquidity and, subject to clearance, a second lifeline of €165m of additional liquidity with maturities of its debt extended until 2023. Codere yesterday unveiled a new marketing campaign with Spanish ad agency Shackleton.