Swine Flu Affects Codere Business

Leading Spanish gaming firm Codere has revealed its financial results for the first six months of the year showing a 2.2 percent year-on-year decrease in revenues to €492.6 million.

The Madrid-based firm stated that earnings before interest, tax, depreciation and amortisation fell 12.9 percent year-on-year to €105 million while its net income decreased to a loss of €5.7 million from €700,000 last year.

Codere blamed the results on ‘the slowdown of consumption provoked by the economic crisis in Spain’ and the impact of the swine flu virus in Mexico alongside the appreciation of the Euro against local currencies.

However, Codere reported earnings before interest, tax, depreciation and amortisation of €49.6 million for the second quarter of 2009, which exceeded its guidance range of €45 to €47 million. In addition, it stated that revenues and earnings increased in Argentina, Panama and Uruguay while in Spain it saw its sportsbetting business begin to ‘weigh on the numbers’.

Revenues from Argentina increased 14.3 percent year-on-year to €183.4 million due to an increase in the net win per slot seat per day and were 17.8 percent higher in local currency. Earnings before interest, tax, depreciation and amortisation rose 6.8 percent to €55.2 million compared to the same period in 2008.

Takings from Mexico fell 13 percent year-on-year to €96.3 million while earnings before interest, tax, depreciation and amortisation decreased 14.2 percent year-on-year to €30.8 million. Codere blamed these figures on the closure by officials of 71 of its 105 sites in the Latin American nation for various periods due to fears over swine flu.

“We estimate that the earnings before interest, tax, depreciation and amortisation loss due to hall closures and reduced demand for this period is approximately €3.5 million, which has been reflected in the second quarter results,” read a statement from Codere.

In Spain, AWP revenues for the half-year decreased 16.9 percent year-on-year to €89 million while earnings before interest, tax, depreciation and amortisation dropped 35.2 percent year-on-year to €23.4 million.