ne of them is Codere, which last Friday presented the 2008 report. In it, it shows that the business of recreational machines in Spain grew a 2.2%, up to 208.6 million euros. However, the number is not totally comparable, because the company increased its number of machines a 3.4%, reaching 15,963. So, if it is compared to the same number of terminals with regards to 2007, incomes of this activity decreased more than 1%.
It is the first decrease since 1993, according to official sources of Codere, which is also suffering the same symptoms than its bingos in Spain. In this area, its income grew a 19% in 2008, but the number is not comparable, either, because last financial exercise it was closed Bingo Canoe, the largest of Madrid.
“The number of visitors is the same, but the expense is less,” the company comments. “These businesses are connected to retail consumption,” they add. The same happens with slots. Average daily collection decreased a 6.1% in total in 2008, reaching the 55.7 euros, according to Codere. This decrease was more aggressive in the last quarter of last year, when average expense decreased 9.4%, reaching 53.3 euros.
Of the countries where Codere operates, just Mexico exceeded the fall registered by Spain. In the fourth quarter of last year, the ebitda of the slots division of Codere fell a 31.4%. In the full year, decrease is of 12.8%.
In Cirsa, the first gambling operator in Spain, they have the same sensation. The Catalonian firm will publish its 2008 results by the end of the month, but it admits that business and bingo machines are being affected by the crisis. “We’ll see how they evolve”, point sources of Cirsa, that currently has 25,895 terminals.
The two operators expect to offset this cyclical effect with the inauguration of sportsbooks centres. Codere, which already has an operating license in the Basque Country and in Madrid, collected 700,000 euros. Besides, Cirsa registered 300,000 bets in its centres in the Spanish capital city –it expects to have 50- and brought prizes for seven million euros in the first nine months of 2008.