“This year, according to plan, investments have increased with the aim of restoring growth and recovering our competitive capacity”

José Antonio Martínez Sampedro., Codere Group’s Chairman & CEO
People want to enjoy themselves playing
and betting on games in which chance and
skill play a role. There is a growing demand
for this activity in today’s society.
Codere sees it as a mission to be able
to attend to this demand in a professional,
transparent, and responsible manner in
order to be able to generate economic
growth sustainably.
To be a reference in professional,
transparent and responsible management
in gambling for regulators and customers
alike in the markets in which we have
a presence.
We understand that doing
things right requires:
— Qualified teams having continual training
    and development.
— Customer-oriented, creating appreciable
   competitive advantages.
— Innovation which takes advantage of the
   evolution of technology.
— Respect for and adaptation to the diverse
   cultures and sensibilities of our
Our activity requires that we handle a large
quantity of outside resources, such as
player prizes and special taxes. This
characteristic calls for and warrants great
administrative intervention. Transparency is
the only way to attain the trust and credibility
from regulators and customers. We have
been the leading Spanish gaming company
to trade on the Securities Market.
Excessive gambling is not harmless, and gives
rise to socially worrisome effects on the most
vulnerable groups. To help Regulators and
Public Administrations reduce this possible
social impact to a minimum is to help us all.

Codere ́s Group principal magnitudes graphics

Revenues/Ebitda 2016

Operating data 2016

Principal milestones in Codere history
Codere completes the Company balance sheet restructuring process.
Definition of the strategic Plan 2016-2020.
Corporate debt refinancing allows for lower interest expense.
Codere acquires the additional 50% of HRU, its subsidiary in Uruguay.
The Company becomes the official Bookmaker of Real Madrid
Football Club.
Codere starts its online activity in Mexico under the Codere
Apuestas brand.
Principal milestones in Codere history
Growth of Codere Italy through the purchase of local operators.
Codere Spain begins operating sports betting under a national
license and incorporates casino games into its online activity.
Codere Brazil launches a pilot drive of its online activity.
Principal milestones in Codere history
Codere reaches an agreement with the essential terms for
the restructuring of Group capital and debt.
Agreement for simulcasting between the Maroñas and
Las Piedras racetracks in Uruguay and the Hipódromo
de Cristal racetrack in Porto Alegre, Brazil.
Codere leads on-premise betting in Spain and launches the
sports betting web App: Codere.es.
Principal milestones in Codere history
Re-inauguration of the Casino Carrasco and reopening of
the Hipódromo de las Piedras racetrack, both in Uruguay.
Celebration of the 70th anniversary of the Hipódromo de
las Américas racetrack in Mexico.
Renewal of the licenses granted to ve gaming halls in
Principal milestones in Codere history
Codere places a bond issue for 300 million US$.
Acquires 60% of the operator Dalla Pria service s.R.L. in Italy.
The Company obtains the license for the possession, use and
exploitation of the Hipódromo de las Piedras racetrack in
Uruguay for 30 years, and continues with the Hotel Casino
Carrasco renovations.
Inaugurates the Crown Casino Zona t hall in Bogotá, Colombia.
Renewal until 2028 and 2029 of ve of the licenses which Codere
operates in gaming halls in the province of Buenos Aires (Argentina).
Principal milestones in Codere history
The Codere Group signs a purchase option for an additional
35.8% stake in ICELA (Mexico).
Codere Italy closes the purchase of the gaming machine operators
FG slot services, Gap Games and Gaming Re throughout 2011.
Codere becomes the exclusive distributor of international
simulcasting through its agreement with Jockey Club do
Paraná (Brazil).
The Codere Group ethics and Conduct Code is approved.
Start of the renovation works on the Hotel Casino Carrasco.
Principal milestones in Codere history
Codere consolidates its position in Mexico and
announces an agreement with the Caliente Group.
Acquires six casinos in Panama.
Starts its sports betting operations in navarra (Spain).
The first online bingo operation starts in Italy through
twww.codere.it and VLTs are installed in its gaming halls.
Principal milestones in Codere history
Renewal of the license of the La Plata (Argentina) Bingo Hall.
Codere is awarded the tender for the reconstruction and management
of the Hotel Casino Carrasco en Montevideo (Uruguay).
Codere inaugurates the Casino Crown Palatino in Bogotá (Colombia).
Principal milestones in Codere history
Cashless (TITO) systems start to be introduced in Argentina.
Codere obtains the license to operate sports betting in the
Autonomous Community of Madrid, and opens the first sports
betting shop in Spain.
Opening of a new casino in Panama.
Starts its sports betting operations in the Basque Country (Spain).
Principal milestones in Codere history
Codere goes public.
Acquires 49% of ICELA in Mexico.
Purchases Maxibingo in Italy.
Renewal of certain bingo licenses in Argentina.
Codere and its shareholders obtain a sports
betting license in the Basque Country (Spain).
Principal milestones in Codere history
Begins operating in Brazil.
Bond issue for 160 and 165 million euros.
Purchases Bingo Palace and Codere network in Italy.
Acquires MAE in Mallorca (Spain).
Acquisition of Promojuegos in Mexico.
The Martínez Sampedro family purchases the stake of
the Franco brothers and the ICG and MCP funds.
Asset swap between Chile and Panama.
Principal milestones in Codere history
Begins managing gaming terminals in Italy.
Begins managing TEB in Mexico.
Purchase of the Royal group in Argentina.
Bond issue for 335 million euros.
Acquires Operbingo in Italy.
Principal milestones in Codere history
Codere takes out a mezzanine loan for 135 million euros.
Attains the management of Hipódromo Maroñas de
Montevideo (Uruguay) racetrack, and reopens it.
Principal milestones in Codere history
Codere starts up its activities in Italy through a contract
in 16 bingo halls.
Monitor Clipper Partners invests 40 million euros in Codere.
Principal milestones in Codere history
Expansion in Chile.
Obtains a syndicated loan for 72 million euros.
Purchase of the CANOE Bingo Hall, in Madrid.
Acquires Operibérica and adds 3,500 new gaming
machines to its business in Spain.
Principal milestones in Codere history
Syndicated loan for 45 million euros.
Authorized to install gaming machines in the bingo halls of
Argentina, driving business profitability.
Principal milestones in Codere history
Begins managing bingo halls in Argentina.
Starts operations in Mexico with Caliente and CIE group.
Principal milestones in Codere history
Codere starts up its activities in Madrid.
Enters the markets of Catalonia and the Autonomous
Community of Valencia.
Codere begins its international expansion in Colombia.

Codere in the world


Latin America

Areas of activity

Gaming machines are the origin of Codere’s activities in the sector, and constitute one of its principal business areas. In 2016, the Company operated 55,060 machines, an increase of 1.16% over the previous year, in the Mexico, Spain, Italy, Argentina, Colombia, Panama and Uruguay, markets, which are very different from one another and which are at different stages of maturity.

Each year, Group professionals analyze the tastes and preferences of consumers, as well as the needs of the establishment in order to meet consumer demands, and provide customers and users with an integral quality service through the analysis, renovation, and rotation of machine models, commercial attention, collection management, technical service, or management services, among other activities carried out.

Codere is an operator of international reference
managing 144 gaming halls (with over 50 gaming machines) in the countries in which it is present. In addition, it carries out its activity through
633 recreational halls (gaming establishments having between 5 and 50 gaming machines operated by Codere or third parties) and in bars (bars, restaurants, tobacco shops, and any other establishment having fewer than ve betting machines or terminals).

In recent years, the Company made a signi cant investment effort in this segment, becoming the leading operator in Latin America, especially in Mexico and Argentina, in the province of Buenos Aires and Uruguay.

Codere has broad experience as a
sports betting operator at the international level, carrying out this activity in Spain, Mexico, Panama, Uruguay and Brazil. In 2016, the number of Group sports betting terminals rose to 3,984, a 15.7% increase over the previous year.

Codere began operating in this activity on its arrival in Mexico in 1998, introduced by its local partners. The majority of these betting shops are connected with gaming halls, making it possible to offer users a wide variety of gambling entertainment options. In the Panama and Uruguay markets, betting halls are linked to the management of the Presidente Remón racetrack (Panama), and Hipódromo Nacional de Maroñas and Hipódromo Las Piedras racetracks (both in Uruguay). Since 2006, Codere has also been operating in Brazil, managing betting shops alongside the principal equestrian clubs of the country and offering its customers horse race betting at the national and international level.
In Spain, Codere is the first company licensed to operate sports betting in the country, and inaugurated the first on-premise betting shop on 16 April 2008 in Madrid, in the CANOE bingo hall.

On 23 November 2016, Codere became the “Official Sports Bookmaker for Real Madrid C.F.”, after making public a sponsorship agreement for the following four seasons.

In 2016 Codere operated four racetracks: Hipódromo de las Américas (Mexico), Hipódromo Presidente Remón (Panama), as well as Hipódromo Nacional de Maroñas and Hipódromo Las Piedras (both in Uruguay).

Together with horse racing and betting, the Company also operates under the racino model, which allows for the installation of gaming terminals at racetracks or in facilities associated with the racetrack, in an aim to contribute to financing this activity. Thanks to its experience in the sector, and to excellent management procedures, the Company provides successful formulas to revitalize this activity which, at the end of the nineties, was in recession in Latin America.

The Hipódromo de las Américas (Mexico), Hipódromo Presidente Remón (Panama) and Hipódromo Nacional de Maroñas (Uruguay) racetracks form part of the International Federation of Horse Racing Authorities (IFHA), a prestigious international organization in charge of promoting good regulation and best practices internationally in horse racing matters.

The Company has been consolidating its commitment to online activity, responding to new customer demands and driving its development in the countries in which it operates, and where this is legally permissible. In 2016, Codere carried out its online activity in three markets: Spain, Brazil and Mexico:

The Group digital strategy advocates omni-channel entertainment, allowing users both an on-premise and online experience, which, in the case of Spain, is a great competitive advantage, given its extensive gaming hall network. Moreover, the Company works day to day in developing new, more accessible formats, and collaborates with strategic partners, making it possible to improve customer experience with an attractive gaming offering.

Codere strategy

In April 2016, Codere definitively completed its financial restructuring, starting a new stage with a stronger balance sheet and able to once again sustain growth projects. After a number of years in which the Company was basically focused on cost efficiency, a period was started to drive growth from the perspective of income.
The resolution of the uncertainties associated with this process has allowed the Company to focus on a Strategic Plan (2016-2020) which establishes a long-term vision of the business project, defining the competitive positioning of Codere by markets, as well as its management priorities.
Investors showed their confidence in the progress made and in the action plans, given that this past November the Group successfully refinanced its corporate debt. This entailed a significant reduction in interest expense, by about 23 million euros annually.
The strategic plan entails a transformation of the organization to respond to the new challenges of the sector: customer management and business digitization. Codere has gone from being a logistics operator to becoming a customer-oriented manager. This entails the need to incorporate technological and analytical capacities into the organization, in order to attain sophisticated customer database management and to be able to offer customers better service in highly competitive environments.
The Company is aware that the new technologies, which have arisen –together with the gradual regulation of online gaming-, has shaped new consumer habits. This makes it necessary not only to guarantee a legal gambling online offering for customers that provides users with the maximum assurances, but also to introduce digital elements with traditional customers, and consequently improve their relationship with the Company.
All of these efforts are reflected in the signing, this past November, of the sponsorship agreement with the Real Madrid, a global agreement, which makes the Company the Official Bookmaker of this Madrid football club until 2020. This alliance makes it possible to capitalize the worldwide recognition of this football club in Codere brand notoriety in Latin America, Spain and Italy, a decisive factor in promoting both the online as well as on-premise offering.
Likewise, Codere considers inorganic growth to be key in the coming years, given that it wants to lead the consolidation of the markets in which it operates. In this regard, this past November the remaining 50% of HRU was purchased, with Codere becoming the sole owner of the Uruguayan business, which –in conjunction with the fiscal improvements rendering the Hotel Casino Carrasco Nobile of Montevideo more viable–set the stage for the consolidation of the operations in the country.
The growth projects in the rest of Latin America –Mexico, Argentina, Panama and Colombia– will be focused on the opening of new gaming halls, selective purchases of operators, and the development of a sports betting channel. In Europe –Spain and Italy–, the projects will materialize by means of associations, acquisitions and the promotion of sports betting.

2016 pdf Annual Report