Like most gaming companies, Codere has been negatively affected by the COVID-19 pandemic. Even a year in, the pandemic continues to affect how gaming companies are operating. For the Spanish operator, the recent first-quarter totals of 2021 tell the story of the pandemic effect. The company saw a decrease in operating revenues for the company is down 54.3%. a total of €127.2m ($155m) was generated. The lower totals were due to closures as well as restrictions on operations.
Details of the Decrease
The retail operations for Codere in Italy were still closed during the quarter and operations in other areas like Panama and Mexico were affected due to closures and pandemic restrictions. Q1 2021 adjusted EBITDA came in a €3.5m which is a more than 92% decrease when compared to the first quarter of last year. Of course, during that time frame, the pandemic was just starting to surface in China.
Even though the company implemented cost-saving measures and efficiency tactics, the adjusted EBITDA margin decreased to 2.7%. This is more than 14% less than the first quarter results last year. Closures within the company led to a net loss of €91.5m in the first quarter. Interest expenses and the devaluation of operating currency led to the loss.
By the end of March 2021, the company had just over 30,000 active slots in all markets it operates in except for Uruguay and Italy. Codere is a major gambling company, operating a large number of gaming halls, arcades, sports betting shops, and bars.
New Pariplay Deal
As the company has been hit with first-quarter losses, they are not ceasing efforts to grow and expand. Just a few days ago, it was announced that Pariplay signed a deal with Codere to make its quality game portfolio live in Colombia.
Adding its games with Codere allows Pariplay to secure a spot in the growing Spanish-speaking market. Codere’s Casino Product Manager Sarit Adania commented that the slots of Pariplay will help to diversify the company’s slots portfolio in Colombia and they know the games are popular with players in the region.
Adania state further that both companies feel that the alliance will be fruitful for both parties in a region where online gaming is growing at a fast pace. Pariplay sees great growth potential in the region and feels that going live with a leading presence in the market will ensure the performance of the games will go from strength to strength.