William Hill Quitting Spanish Venture

LONDON, ENGLAND – British gaming group William Hill will be gradually withdrawing from its joint operations of sports betting shops in Spain with Spanish group Codere in the coming months.

The UK-based operator cited regulatory and economic reasons for its decision to withdraw from Spain where it co-operates Victoria Apuestas with Codere. William Hill clarified that Codere will continue to manage the 98 betting shops located in the Madrid and Basque while they will continue to provide bookmaking services.

In a statement released to media, William Hill stated:

“Achieving relevant scale for the business has always been dependent upon a substantial growth in the number of outlet. Achieving this scale has proved problematic because of the slow granting of local regulatory consents and the slower than anticipated regulatory changes within other regions. These factors, coupled with the difficult economic situation within Spain, were likely to lead to additional capital requirements and a delay in achieving William Hill’s target return for the venture.”

The company further added that it will instead focus its resources and energy to tis international sports betting strategy, in particular, expanding the online presence and business of William Hill Online.

Spanish Gaming Firm Shows Positive for 2008

MADRID, SPAIN – Spanish gaming group Codere’s financial results for 2008 show that the firm is in the black.

The leading Madrid-based gaming company reported a 19.8% increase in revenue for 2008 to top at €1.0543 billion and earnings increased 17.2% to €234.7 million.

Codere stated that the positive results were helped by continuous growth of its Latin American markets — Mexico and Argentina — despite the prevailing economic conditions.

The results were achieved despite the Euro appreciating against local currencies and Codere further revealed that profits would have risen by 25.4% if exchange rates remained constant and the earnings would have reached 24.3%.

However, the grooup also disclosed that it had a net loss of €10.6 million in 2008 contributed by the varying exchange rate and expenses arising out of its Italian bingo operations. Codere also mentioned a €9.5 million loss resulting from closing down some non-performing opertions in Italy and costs it incurred when it set up a Spanish sportsbook operation.

Results also showed that total investment for 2008 was €141.3 million, a 52.2% dip from 2007 and that operating cash flow rose to €121.5 million or 16.6%.

Codere’s portfolio was also enlarged in 2008 as it added 5,237 gaming machines to up its total to over 54,800 and opened 51 new betting shops to make their total shops at 106. The company also added nine bingo halls, upping the total to 137 and it also opened a new casino last year to make the final tally of six casinos plus three horse racetracks currently being operated.