"A period of growth focused on profitability begins for Codere"

Even though Codere's CEO recognized the influence of the online market, he highlighted the position of land-based venues and the consolidation of current businesses. “It is unlikely that we enter new markets,” He pointed out the consequences of tax load and ratified their battle against problem gambling as one of their core objectives.

Vicente Di Loreto talked to the specialized press, joined by Alejandro Pascual, Director of Operations in Europe and Luis Miguel Cabeza de Vaca, head of Institutional Relations at Codere Spain.

"We are interested in the online channel because the company is beginning a digitalization process of its operations. Even though we are actually developing our online sector in extent, for instance, by incorporating new staff, we are not going to leave out the fact that land-based operations still represent 90% of the company’s business and our focus is still placed there," Di Loreto pointed out. He also stated that the major opportunities for the Group are in Spain, as well as Mexico, and more broadly, in the online segment.

When speaking to the Spanish journals InfoPlay and AzarPlus, the executive explained that the company’s approach to responsibility has two main edges: taxation and social responsibility. "We are a responsible operator and we seek for a balance between maximization of taxes imposed by the State and the tax load that the industry is able to bear. I believe that no one has the right answer and the balance point will be found over time. However, we observe that for instance in Italy, that balance point is beginning to disappear. The company’s sustainability, jobs and investments are at stake."

As regards the digitalization process, he assured that the online development of the company is quite ambitious, a "clear opportunity for Spain, Mexico, and Colombia, among others." He also weighed the possibility of landing in markets where regulation is beginning to be discussed, such as Argentina.

According to Di Loreto, A period of growth focused on profitability and share value has just begun for Codere. When speaking about investments and expenses, he forecasted advances although opportunities are "not that clear."

When asked about the recent sale of Cirsa to Blackstone investment fund, Di Loreto revealed: "It represents a key transaction for our main competitor. In 2011, we already knew that the institutional capital would find our sector appealing. It is a tendency that started developing until it culminated in Cirsa’s transaction."

However, he denied rumors about a possible merger with Cirsa. "Truth is that a merger has never been a part of our agenda," he assured.

When speaking about the future profitability of the company, he seemed optimistic. “Our company has a considerable business percentage in Latin America. Those markets are subject to major currency volatility which is sometimes convenient, and sometimes not. Now, we are experiencing a negative stage in the respect, due to the devaluation of the region’s currencies. However, interannual growth remains solid, despite this currency issues. We believe our results will surpass last year’s.”