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CODERE 2013 financial results

CODERE just make public its fourth quarter 2013 and full-year accumulated most notably EBITDA of 206.1 million euros, representing a decrease of 28.3% compared to 287.3 same I peridodo 2012.

EBITDA for 2013 was €206.1mm, a decrease of 28.3% compared to €287.3mm in the same period in 2012. Q4 2013 EBITDA was €33.8mm. Excluding the effect of non-recurring items, EBITDA in Q4 2013 would have been €56.7mm, above the range of our EBITDA guidance of €52-55mm. These non-recurring items are mainly related to the process of financial restructuring costs and personnel restructuring cost.

 This EBITDA decrease is due to the implementation of the smoking ban in Argentina, to the constant devaluation of the Argentine peso against the euro, to higher taxes in Italy and Argentina; and, to a lesser extent, to the temporary closure of gaming halls in Mexico. This decrease was partially offset by the ongoing restructuring process and the growth of the Sports Betting Business in Spain. At constant exchange rates, the 2013 EBITDA would have been €234.1mm, representing a decrease of 19.6% over the comparable period in 2012.

This EBITDA evolution also reflects the important work done in the reduction of the operating expenses (3,5%), which compensates increases in gaming tax rates, and partially offsets the decrease in revenues (7%) derived of the macroeconomic context in the markets where we operate and other circumstances explained in this report. 
Capex in 2013 was focused on those projects with a direct impact on business profitability. Capex in 2013 was €76.3mm, of which €45.7mm was maintenance (including license renewals in Argentina) and €30.6mm was growth. Excluding Capex associated with license renewals in Argentina (€107.1mm in 2012 and €12.9mm in 2013) and the acquisition of the additional participation of 35.8% of ICELA in 2012 (€158mm), total Capex in 2013 would have been €63.4mm, 65.4% lower than €183.4mm of the previous year. 
Growth in the machine portfolio was concentrated in Uruguay, Argentina and Italy, with increases of 18.2%, 7.3% and 3.8%, respectively. The total number of machine seats decreased by 4.4%, to 54,010 in 2013, compared to 56,474 in 2012, mostly as a result of the temporary closure of gaming halls in Mexico and to the rationalization of AWP portfolio in Spain. The total number of gaming halls and sports betting locations was 179 and 1,568 respectively, compared to 186 and 1,379 at the end of 2012. 
At December 31, 2013 we had €102.6mm in cash and no available amounts under the Senior Credit Facility. Coverage and leverage ratios were 1.5x and 5.5x, respectively, compared to 2.7x and 3.8x in 2012. 


CODERE will hold a conference call on Friday, February 28th, 2014 at 4:00pm CET (3:00pm London time; 10:00am New York time).

To register: Participants can pre-register for the call on this link. On completion, the participants will be given a telephone number to call, an identification number for the conference and a PIN as their identification.

CODERE will upload the audio record of the conference call on its website (under the Investor Relations section) approximately three hours after the end of the call.

For further information please contact: