ast week, it took place in the Palace of Madrid Stock Market, the 5th Forum of
Medium-Sized Companies, with the aim to boost liquidity and funding capacity
of these companies. Codere has participated as an invited company, both in panels of the sector, with debate tables on issues of general interest and in meetings with investors.
Robert Gray participated in the conference: “Latin America: Growth or risk factor?”, together with Cie Automotive President and the CEO of Tavex. Lily Arteaga, Director of Relations with Codere Investments, had contacts with investors during the session.
Gray talked about Codere case, whose Latin American markets have been growing in recent years, and that’s why it has increased the importance of the company in the region. “With the numbers of the first semestre of 2009, the Latin American markets already represent the 79% of EBITDA of the group, mainly boosted by the business in Argentina and Mexico, that have grown in the latest five years an Annual Fee of Composed Growth (TACC) of 73% and 38% respectively, in euros”.
He also commented that “Codere growth is not directly linked to economic cycles. The success of the company is based in the integration of technology, the knowledge of the market and the regulation, to develop legal gaming experiences.”
Supporting his speech with data and experiences, he confirmed that “Codere key markets have shown to be relatively resistant to the recession. Even in Spain, that lives its worst crisis from Codere creation, the business has proved to be more resistant to recession than other sectors.”
He did not avoid mentioning the risk factors existing in the region and explained that “Codere business model has generated a solid growth in spite of its dependence from Latin America and, consequently, the volatility in the currency types”.
In the conclusions, he commented his “confidence in the fact that Codere growth will keep growing, boosted by crucial factors –the tendency for gaming according to the growth of economies and a strong incentive for governments that supposes to regulate and collect taxes from these activities- because the gaming sector is in the development phase in most of our markets.”
This meeting, organized by the four Spanish stock markets, gathers every year the main medium and small-sized companies, that quote in the Spanish market with institucional investors, middlemen and analysts. Among others, Catalana Occidente, Jazztel, Amper, Banco Pastor, Iberia, OHL, Mapfre, Zeltia, Sacyr Vallehermoso and Técnicas Reunidas were present.
Besides, Gray said that the company calculates that its Ebitda in the second quarter will be among 45 and 47 million euros, which means that it will suffer a reduction of 3 to 5 million euros due to the effects of Influenza A.
In the first quarter of 2009, the company earned 1.7 million euros, a 54,5 % more than the 1.1 million euros for the same period of 2008, and its Ebitda was 55,4 million, of which the 38 % were brought by Mexico, where it operates 105 bingo halls.
Mexico is the country that was affected the most by Influenza A, which has caused the cancellation of public events and the closure of venues, including gaming centers, as preventive measures.