International edition
July 28, 2021

Statements by firm’s President, Beatrice Rangel

Codere bets strong in Mexico

(Mexico).- In the long term, Mexico will become the jewel of the crown of the Spanish company Codere. The bet is in the increment of its share participation (from 35.8% to 85.4%) in CIE Las Américas, the capitalization of liabilities of Grupo Caliente (which enables to have a majority position in 42 gambling venues) and the modernization of its facilities with emphasis in gastronomy.

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owadays, Mexico is the second market that contributes the most, both in incomes and in the cashflow of operations (EBITDA), following Argentina. “We see the possibility to reach (Argentinian operation) in 5 years, That is the great goal, to be the largest generator of EBITDA of Codere worldwide. It is the big challenge”, said Beatrice Rangel, President of Codere.

In accumulated numbers to September, the country contributed with a 21% in incomes and EBITDA, each, to the financial results of the firm. Besides, it is the nation in which Codere has more gambling halls and machines, with a total of 95 and 18,953, which represent the 51% and 38% of the total that the company operates worldwide.

With regards to the business expectations, Rangel considered that Mexico will keep on growing. “I do not think that its bet on macroeconomic stability will disappear. As long as it keeps on evolving, more investments will have to be made. In such a competitive market, you must consider reinvesting in the country between 15% and 20% of your winnings of you do not maintain your competitive position”.

The plans of modification and repositioning of the gambling venues tend to strenghten the operations of the company in Mexico. In Mundo E (Satélite, State of Mexico) will be their  model rooms, with an accumulated investment of us$ 20 million.

The company is aware of the importance that gastronomy plays in this business, so she signed an agreement with Mexican chef, Josefina Santacruz, who not only will advise to offer better dishes, but will also give classes to the customers that assist to the gambling venues. “We will try to replicate the experience of Argentina, where they have a culinary school in Lomas de Zamora District. We also have agreements with cultural associations to have live shows all the time, and there we go”, commented the executive.

For Rangel, once the additional purchase of the capital of CIE Las Américas, the operation of Codere Mexico will increase its contribution in EBITDA generated by Latin American countries (Argentina, Mexico, Colombia, Panama, Uruguay and Brazil) for Codere worldwide.

“To give you a proportion, Latin America represents around 80% / 81% on the total of Codere”, commented. She considered that Mexico, together with Brazil and Argentina, are poles of growth of the Latin American economy and represents the 90% of the region. Of the other 10%, Colombia is 6%.

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