Codere’s First Quarter Earnings Plummet Due to COVID-19 Impact
The Spanish gaming firm, Codere, has announced a substantial decline in earnings for the initial quarter of 2021, attributing the slump to the COVID-19 crisis. Government-imposed restrictions and health measures resulted in extensive shutdowns of the company’s betting establishments and casinos, causing a 54% plunge in income compared to the corresponding period the previous year.
Although the company managed to generate a marginal positive operating income (EBITDA) in a majority of its markets, it ultimately posted a considerable loss for the quarter. Codere’s cash holdings also diminished as the pandemic persisted in affecting its operations.
Notwithstanding the obstacles, Codere maintains a significant presence with numerous gaming terminals and venues throughout Latin America and Europe.
During the month of April, Codere reached an accord with its primary lenders to effectively halt the trading of the company’s shares. This temporary suspension was implemented to maintain stability while they endeavored to gain control of their financial situation. Furthermore, they successfully obtained a substantial capital infusion of €100 million, with an initial installment of €30 million already received. Nevertheless, this entire predicament significantly alarmed investors, particularly when creditors intervened to assume greater authority. Consequently, Codere’s share value experienced a sharp decline.
