Codere is back in the black

Leading Spanish gaming firm Codere has released its financial results for 2009 showing that it is now back in the black after a recent cost reduction programme helped it to bring in net income of €19.1 million.

Codere operates more than 53,760 gaming machines in Europe and Latin America along with 142 bingo halls, 179 off-track betting facilities, three racetracks and seven casinos in Argentina, Brazil, Colombia, Spain, Italy, Mexico, Panama and Uruguay and reported an overall loss of €10.6 million in 2008.

Although the firm firm saw a decrease of 7.8 percent year-on-year in operating revenue to €967.9 million for the most recent twelve-month period, expenses were cut by 10.3 percent to €847 million. This saw operating profits increase 8.5 percent year-on-year to €116.2 million while overall earnings before interest, tax, depreciation and amortisation fell by less than one percent to €231.1 million.

Codere revealed that total assets decreased by €21.7 million over the year, which was largesly attributable to a 13.8 percent year-on-year devaluation of the Argentine peso against the Euro.

“The devaluation also significantly impacted shareholders’ equity,” read a statement from the Madrid-based firm.

“Fixed assets, net of €92.8 million in accumulated depreciation and amortisation, decreased by €21.6 million principally as a result of the aforementioned devaluation, the depreciation of fixed assets and the impairment charge recorded in Colombia.

“Goodwill on consolidation decreased by €6.5 million primarily as a result of the devaluation of the Argentine peso against the Euro. Long-term financial investments decreased by €18.1 million principally as a result of the classification under current assets due to the short term maturity.”