Codere, S.A. reported consolidated earnings results for the third quarter and nine months ended September 30, 2017. For the quarter, operating revenue was EUR 401.1 million against EUR 390.2 million a year ago. Operating profit was EUR 40.7 million against EUR 39.0 million a year ago. Earnings before corporate income taxes were EUR 25.2 million against EUR 9.7 million a year ago. Net income was EUR 8.7 million against EUR 4.6 million a year ago. EBITDA was EUR 62.4 million against EUR 65.2 million a year ago. Adjusted EBITDA was EUR 68.4 million against EUR 69.3 million a year ago. Adjusted EBITDAR was EUR 99.9 million against EUR 99.5 million a year ago. Cash flow from operations was EUR 36.6 million against EUR 52.7 million a year ago. Capital expenditures were EUR 36.1 million against EUR 19.1 million a year ago.

For nine months, operating revenue was EUR 1,215.5 million against EUR 1,150.1 million a year ago. Operating profit was EUR 105.2 million against EUR 37.8 million a year ago. Earnings before corporate income taxes were EUR 75.4 million against loss of EUR 1,116.0 million a year ago. Net income was EUR 8.3 million against loss of EUR 1,129.7 million a year ago. EBITDA was EUR 183.5 million against EUR 150.1 million a year ago. Adjusted EBITDA was EUR 200.0 million against EUR 201.8 million a year ago. Adjusted EBITDAR was EUR 294.1 million against EUR 290.7 million a year ago. Cash flow from operations was EUR 122.2 million against EUR 118.5 million a year ago. Capital expenditures were EUR 107.8 million against EUR 70.2 million a year ago.

As a result of strong underlying operational trend, the company expects results in the fourth quarter and full year figures to reflect revenue and EBITDA growth versus 2016, considering the very tax increases and depreciation of the U.S. dollar in 2017, which have eroded run rate EBITDA by nearly EUR 30 million, the company believes, posting these results will be a positive outcome for the year, and expects to maintain that momentum moving into 2018. The company believes the trend supports full year CapEx guidance of around EUR 75 million, excluding catch-up CapEx and license renewals, and shows how continues to focus on cash preservation.

For the fourth quarter, the company is expecting EUR 73 million to EUR 76 million in adjusted EBITDA. This guidance range which imply an increase versus fourth quarter 2016 of between 6.7% and 11% is based on forward rates, which assume a significant depreciation of the Argentine and to a lesser extent, Mexican peso, driven primarily by the devaluation of the U.S. dollar versus the euro.