Codere issues profit warning due to Argentina woes

Madrid gambling group Codere SA has issued a profit warning after admitting that a further Argentine Peso devaluation has impacted the firm’s 2019 expectations.

Argentina, one of the operator’s key markets, has once again suffered economic volatility, with local currency Peso dropping 18 per cent against the US dollar in the two weeks. This situation was caused by the nation’s shock primary election results as voters turned against President Mauricio Macri’s government, backing the ‘Frente de Todos’ Peronist coalition.

The Codere has accounted Argentine impact, detailing that it anticipates a 29% decline in the local market earnings as its biggest operational division revenue slumps from €109.9m to €80.0m on a year-on-year basis.

However, its EBITDA guidance for the full year remains unchanged at between €280m and €290m, thanks to overperformance in markets such as Mexico and Uruguay. The company also promised to accelerate its efforts to lessen its reliance on its Argentine operations going forward, with revenue outside the country already improving by 3.3 per cent from €266.1m to €274.9m.

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