Codere finalized its global recapitalization procedure and announced that it had reduced its debt from $1.52 to $207 million. In addition, the Spain-based operator aimed to change its capital structure. The company started in 1980 and pioneered retail sports betting in the country.
With this significant debt reduction, Codere’s net debt for 2023 is around $70.8 million, or almost half of the company’s adjusted EBITDA. Finalized on October 15, the recapitalization was backed by a cash infusion of around €60 million ($65 million). According to gambling software reviews and news sites, the investment would boost its business plan, solvency, and financial health.
Furthermore, the business highlighted that the June recapitalization, which had the full backing of Codere’s creditors, signifies a fresh chapter in the company’s financial health and strategic development.
Codere Finalized Its Global Recapitalization
Under the deal, the operator had already promised to give ownership to its backers and creditors. Despite many setbacks, the recapitalization process is now expected to wrap up in the fourth quarter, as initially planned.
As a result, Codere’s CEO Gonzaga Higuero has remarked on the process’s conclusion, characterizing it as a decisive success and a guarantee for the future that would strengthen the company’s finances and allow it to reach its expansion goals again. Higuero said they were prepared to generate value for everyone involved and thanked their investors, team members, and clients for their support.
According to a player profiling expert, the company plans to use the refinancing to tap into new development prospects in important European and Latin American markets. In September, they reported a 10% decline in sales for the second quarter, which they ascribed to challenging macroeconomic conditions in Argentina caused by the currency’s devaluation. Almost three years ago, Codere renewed its LatAm-focused sponsorship relationship with Real Madrid CF through June 2026.
Year-Over-Year Growth for Codere
At the same time, Codere Online, the industry-leading online sportsbook and casino that debuted in 2014 as a division of the Codere Group recorded $59.2 million in net gaming revenue for the second quarter of 2024, a growth of 39% year in and year out. They know the secrets of how to open a sportsbook in the region.
Results at the 2024 European and American Championships and impressive showings in Mexico and Spain were critical to this expansion. In June, Codere extended one-year terms to Gabriel Saenz de Buruaga, Taavi Davies, and Claude Noesen, bringing the total number of board members to three. At the tail end of March, Codere finalized agreements with two financial and legal adviser companies, Houlihan Lokey and Allen & Overy, making worldwide recapitalization feasible.
But it wasn’t like that throughout the budget year’s first half. As a result of the retail division’s dismal performance, Codere’s first-half sales fell 11% year-on-year to $735.8 million, compared to $826.8 million in 2023. Operating revenues dropped 16% to $617.4 million. Due to the challenging economic climate, the company’s biggest market, Argentina, had a 52% revenue decline to $87.09 million.
Aside from Mexico (-8.3% drop), Spain (-5.6% decline), Italy (-4.8% decline), and Panama (-4.9% decline) were also significant areas where Codere saw reduced revenue. This led to a 25% loss in the group’s EBITDA to $94.8 million, with double-digit drops in all South American regions except Uruguay. Codere Online, the company’s digital branch, overcame these hurdles and generated revenues of $99.2 million, delivering $13.2 million in EBITDA.
