Codere S.A. Company Profile

Background

Overview

Codere S.A. is a multinational gaming company founded in 1980 by the Martínez Sampedro family and the Franco brothers, who were prominent in the amusement machine industry in Spain. The company began by operating amusement machines and expanded into various gaming sectors, including betting shops, bingo halls, and casinos. Over the years, Codere has established a significant presence in Spain, Italy, and Latin America, operating in countries such as Mexico, Panama, Colombia, Argentina, and Uruguay. The company is known for its diverse gaming offerings, including slot machines, sports betting, and online gaming platforms.

Mission and Vision

Codere's mission is to provide high-quality entertainment experiences through a wide range of gaming options, ensuring customer satisfaction and responsible gaming practices. The company's vision focuses on becoming a leading global gaming operator by expanding its market presence, embracing technological innovations, and maintaining a strong commitment to regulatory compliance and corporate responsibility.

Industry Significance

As a major player in the gaming industry, Codere has contributed to the development and regulation of gaming markets in various countries. Its operations have influenced gaming legislation and market dynamics, particularly in Spain and Latin America. The company's ability to adapt to changing regulatory environments and consumer preferences has solidified its position in the industry.

Key Strategic Focus

Core Objectives

Codere aims to achieve sustainable growth by diversifying its gaming offerings, expanding its geographical footprint, and enhancing operational efficiency. The company focuses on integrating its land-based and online gaming operations to provide a seamless omnichannel experience for customers.

Areas of Specialization

Codere specializes in operating gaming halls, casinos, racetracks, and sports betting venues. The company also offers online gaming services, including sports betting and casino games, through its subsidiary, Codere Online.

Key Technologies Utilized

The company employs a range of technologies to enhance its gaming platforms, including advanced gaming management systems, customer relationship management (CRM) tools, and data analytics platforms. Codere Online utilizes a flexible technology platform designed to create engaging online gaming experiences.

Primary Markets Targeted

Codere's primary markets include Spain, Italy, Mexico, Panama, Colombia, Argentina, and Uruguay. The company continues to explore opportunities in other Latin American countries and has expressed interest in expanding into the U.S. Hispanic market.

Financials and Funding

Funding History

Codere has undergone several financial restructurings to manage its debt and support growth initiatives. In October 2024, the company completed a recapitalization process that reduced its gross debt by approximately €1.2 billion, leaving it with about €190 million in gross debt and a consolidated net debt of €65 million. This operation was effective from October 15, 2024, and was supported by over 99% of creditors.

Recent Funding Rounds

The recapitalization in 2024 was a significant funding event, involving the conversion of debt into equity and the issuance of new securities to strengthen the company's financial position. The capital raised is intended to support Codere's strategic plan through 2028, focusing on revenue growth and operational efficiency.

Notable Investors

Following the debt restructuring, creditors became major shareholders in Codere. Notable investors include George Soros, Invesco, Jupiter, Palmestone, and BlackRock.

Utilization of Capital

The capital raised through the recapitalization is allocated to reduce debt, support operational growth, and fund strategic initiatives aimed at achieving the company's objectives by 2028.

Pipeline Development

Key Pipeline Candidates

Codere's pipeline includes the expansion of its online gaming platform, Codere Online, into new markets and the development of new gaming products to enhance customer engagement.

Stages of Development

Codere Online has been operational since 2014 and has expanded its presence in Spain, Mexico, Colombia, Panama, and Argentina. The company continues to develop and refine its online gaming offerings to meet market demands.

Target Conditions

The company's development efforts target the growing online gaming markets in Latin America and Spain, focusing on sports betting and casino games.

Anticipated Milestones

Codere aims to achieve profitability and sustainability in its online gaming operations, with expectations to be EBITDA and cash flow positive for the full year in 2024.

Technological Platform and Innovation

Proprietary Technologies

Codere utilizes proprietary gaming management systems and customer relationship management tools to enhance operational efficiency and customer engagement.

Significant Scientific Methods

The company employs data analytics and machine learning algorithms to optimize gaming operations, personalize marketing efforts, and improve customer experiences.

Leadership Team

Executive Profiles

Gonzaga Higuero: Chief Executive Officer (CEO) of Codere Group. He has been instrumental in leading the company's strategic initiatives and financial restructuring efforts.

Moshe Edree: Former Managing Director of Codere Online, who led the expansion of the online gaming platform. He was replaced by Aviv Sher on March 1, 2023.

Aviv Sher: Appointed as the new Managing Director of Codere Online on March 1, 2023, bringing extensive experience in online gaming operations.

Competitor Profile

Market Insights and Dynamics

The gaming industry is experiencing significant growth, particularly in online gaming sectors. Latin America presents a substantial opportunity due to increasing internet penetration and favorable demographics.

Competitor Analysis

Key competitors include Grupo Codere's own subsidiary, Codere Online, which operates in Spain, Mexico, Colombia, Panama, and Argentina. Other competitors in the Latin American market include local gaming operators and international companies expanding into the region.

Strategic Collaborations and Partnerships

Significant Collaborations

Codere Online has established partnerships with major football clubs, such as Real Madrid and C.F. Monterrey, to enhance brand visibility and customer engagement.

Operational Insights

Strategic Considerations

Codere's strategic focus on integrating land-based and online gaming operations provides a competitive advantage in delivering a seamless customer experience. The company's extensive retail footprint supports its online expansion efforts.

Strategic Opportunities and Future Directions

Strategic Roadmap

Codere plans to continue expanding its online gaming operations, focusing on achieving profitability and sustainability. The company aims to leverage its omnichannel strategy to strengthen its market position in Spain and Latin America.