Spanish gaming firm, Codere, has reportedly inked a deal that will see it partner with local independent arcade operator, Grupo Henares, in order to launch the new BetSlotS chain of gambling halls.
According to a Monday report from G3Newswire, the agreement will see Codere launch eleven new slot-focused gaming enterprises in an around its home city of Madrid with all of the venues to be managed by Grupo Henares.
Joint venture to benefit from parents’ ‘experience’:
Codere was established in 1980 and used an official press release to explain that the new BetSlotS union is due to benefit from ‘the great experience of Grupo Henares in the efficient management of gaming halls’ along with its own ‘experience and backing’ that is to include the provision of ‘the most modern technology and customer insight.’
G3Newswire reported that Codere also declared that the new joint venture will add an additional revenue stream to its operations and reinforce its already substantial presence in the autonomous Community of Madrid.
Gaming machine estate continues to develop:
The fourth quarter of last year reportedly saw Codere’s gaming machine estate rise by 2.4% year-on-year to encompass some 56,571 individual machines with the total in its home nation up by 5.1% followed by a 4.4% rise in Mexico. The three-month period saw the firm’s global gambling hall footprint grow by four to cover 148 venues while its sportsbetting positions swelled by 46.6% to 6,227.
First-quarter profits slump by over 70%:
Despite these increases, the firm reportedly saw its most recent first-quarter profits drop by over 70% year-on-year to just over $936,000, which it subsequently blamed on worsening exchange rates in Latin America and the deterioration in the value of the United States dollar versus the Euro. It furthermore recorded a 5.4% decrease in overall revenues for the initial three months of 2018 to $448.7 million despite a 17.3% increase in turnover from its Spanish operations to $60 million.