Leading Spanish gaming operators Codere has announced results for the first quarter of 2010, showing moderate growth in almost all areas of activity in comparison with the same period for 2009. Codere reports: “EBITDA for the quarter was €54.4 million, exceeding our guidance range of €48-50 million for EBITDA.” The group has reaffirmed 2010 EBITDA forecast for 2010 in the range of €230-240 million.

First quarter EBITDA reflects growth in Argentina, Spain and Italy and a reduction of overhead expenses; partially offset by weakness in Mexico, resulting primarily from anti-tobacco legislation, and the depreciation of the Argentine peso against the euro, at 13.4% compared to 1Q 2009. At a constant exchange rate, first quarter EBITDA would have been €61.7 million, representing an increase of 14.3% over the comparable period in 2009.

Growth in machine operating inventory was concentrated in Argentina and Mexico where the number of machines increased by 5.5% and 3.6%, to 4,726 and 21,341, respectively compared to Q1 2009. Codere reports: “Free cash flow (EBITDA less reported net interest, corporate income taxes and Capex) was €9.1 million in Q1 2010, an increase of 46.8% compared to €6.2 million in Q1 2009.

“At March 31, 2010 Codere had €107.1 million in cash and €58.0 million not drawn under the RCF. Coverage and leverage ratios were 3.4x and 2.9x, similar levels to Q4 2009. Capex in Q1 2010 was €16.4 million, compared to €44.0 million in Q4 2009 and €17.1 million in Q1 2009. 40.9% was maintenance. Net income, which includes a €12.1 million gain associated with the 100% consolidation of the Sports Betting business, was €16.4 million in Q1 2010, compared to €1.7 million in Q1 2009. Excluding this non-recurring gain, net income would have been €4.3 million.”

On future transactions, Codere is in the process of acquiring Mexico’s Grupo Caliente’s gaming operating permits. The group provides Caliente gaming management services and gambling hall development funding since 1997. A similar purchasing agreement in Panama to acquire 63.6% of Thunderbird Resorts Inc.’s stake in six casinos operating under the Fiesta Casino brand is in process. (E-05.14.10) © Copyright 2010 CasinoCompendium



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