Codere Moves To Expand Digital Division

Published Wednesday, January 17, 2018 -
Codere Moves To Expand Digital Division

Codere a Spanish multinational company in the private gaming sector which was founded in 1980 is undergoing some management changes and has announced a new direction. Spanish media provider El Economista recently reported that Codere’s newly installed senior management team has dismissed the strategy of growth using mergers or acquisitions for at least “the next few years.” Codere’s new chairman Norman Sorensen and CEO Vicente di Loreto have voiced they are, “not interested in participating in Cirsa’s open sale process.”  In addition to Mexico, Codere also does business in Argentina, Colombia, Panama and Uruguay.

The potential deal with rival Cirsa has been scuttled in order for the company to focus on building Codere’s digital division. Codere’s new management team expressed interest in taking a potion of Cirsa’s market share, in both local and market abroad, notably in the digital sector. Codere said it has a plan to take the next two or three months to produce a directive with an online focused strategy which the company will devote 20-25% of its gross profits.

As the potential market in Latin America grows Codere will target Mexico and Italy as areas where they see online growth possibilities. Having already launched a new Colombian-licensed online gaming site last November and the firm is expecting to be one of the first to establish its services in Brazil when the country finally approves the long expected new gambling expansion legislation. Coderes’ profit from bingo is expected to decline as the company continues to roll out more digital platforms in Latin America.

The strategy of the new management team at Codere is to operate with a leaner budget for the next few years with the aim of bringing down its long-term debt levels. The firm has announced plans to not offer dividends to its shareholders for at least another year.


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