Codere reports net loss for 2012

Madrid-based firm revealed that gross earnings before interest, tax, depreciation and amortisation for the twelve-month period reached 305.2 million euros, which was an improvement of 5.4 percent over the previous year, although its 2012 net income was negative with a loss of 104.6 million euros due to asset impairment in Spain amounting to 75.2 million euros.

Codere announced that capital expenditure for 2012 reached 429.4 million euros with 188.7 million euros of this for maintenance while the remainder was associated with the renewal of licences in Argentina and the 240.7 million euros it spent for ‘growth’ including 158 million euros for an additional 35.8 percent stake in ICELA in Mexico.

“Sales in Mexico increased 50 percent reaching 437.2 million euros in 2012 due mainly to the consolidation of the operations acquired from ICELA and Caliente and the increase in average daily revenues,” read a statement from Codere. “Total terminals decreased by 1.8 percent over the previous year [while] earnings before interest, tax, depreciation and amortisation increased 67.8 percent reaching 103.2 million euros.

“In Argentina, sales reached 653.8 million euros and earnings before interest, tax, depreciation and amortisation fell to 160.6 million euros, 2.8 percent less than the previous year, mainly due to the implementation of the smoking ban in October 2012. Revenues increased this year driven by the increase in average daily revenues per machine of 8.6 percent and a 10.9 percent increase in installed machines particularly in the Mar de Plata establishment.

“In Italy, sales in 2012 increased by 16.4 percent to 261 million euros thanks to the consolidation of AWP machine operators Gap Games, Gaming Re and Dalla Pria Services acquired last year as well as to the increase in the number of terminals in the country. This growth was partially offset as a result, among others, of the fall in average daily revenues per machine and the decline in the amounts played in the Italian market as a result of the economic recession in the country. Earnings before interest, tax, depreciation and amortisation declined by 21.5 percent due to higher taxes on video lottery terminals.

“In Spain, sales fell by 6.9 percent in 2012 mainly due to the deep economic crisis in the country. Following the major rationalisation of the machine stock, average daily revenues improved by 6.2 percent in 2012. There was a notable increase of 69 percent of the revenues of the sportsbetting business as a result of product improvement and the increase in the number of outlets, which rose from 600 in December of 2011 to 1,176 in December of 2012. Earnings before interest, tax, depreciation and amortisation margin decreased to 10.3 percent on the fall in revenues, partially offset in [the fourth quarter] for the tax savings following the removal of lower profitability machines and the containment in personnel expenses.”