Directors refuse to sign financial results of Codere

Three directors of Codere, a Spanish gaming service provider, have refused to sign off the latest financial results of the company. This is likely to ignite further boardroom battles, as the three rebelling directors include the company’s founders as well.

For the record, the company’s results showed growth in Europe, but there was 7 per cent dip in turnover, largely because of the fluctuations in exchange rates, especially Argentina’s Peso.

Operating income was at €759.3m (£681m/$880m) as a result of the collapse of revenue in Argentina, which was down 22.5 per cent to €232.6m. Codere pointed out that at a constant exchange rate, revenues would have grown by more than 11 per cent.

The Bolsa Madrid operator recorded group-wide consolidated losses of €34m across all its operating divisions. Corporate debt balance is at approximately €840m, down slightly on 2017.

Codere’s European segment registered an increase in turnover of almost 10 per cent to €273m, which it said was mainly due to its growth in online and face-to-face sports betting in Spain.

President Raúl Sorensen, appointed to replace founder José Antonio Martínez Sampedro in a boardroom coup earlier this year, was among those to sign off the accounts. Martínez Sampedro, his brother Luis Javier and Pío Cabanillas would not put their names to it.

The Martínez Sampedro founded the company and were the controlling shareholders until financial restructuring in 2014.

They kept their positions until January 2018, when the main shareholder funds appointed Vicente di Loreto as the new CEO and Sorensen as non-executive chairman. The Martínez Sampedro became proprietary board members.

Codere was recently linked with a takeover by private equity group Blackstone.

Source: iGaming Business