SBC News Codere Online cites year-1 progress despite widening losses

Codere Online cites year-1 progress despite widening losses

Codere Online has reflected on “stronger than expected results” across online casino amid a “strong set of results” through Q3, despite net loss soaring to 2022 highs through this latest reporting period.

Revenue through July to September soared 51 per cent year-on-year to €28.9m, a figure that also represents a 5.47 per cent uptick from Q2 2022’s €27.4 as well as an increase of 20.92 per cent from the €23.9m reported during the year’s third quarter.

This has also seen the group report a narrowed full-year expectation of €115m-€120m, with an “acceleration in revenue growth” and upcoming World Cup causing increased optimism.

Net loss through the third quarter closed at €11.6m, which, when added to the €10.1m and €6.7m reported during Q1 and Q2, sees the year-to-date figure hit €28.4m.

On a geographical basis, Spain takes the lion’s share of revenue courtesy of a 29 per cent year-on-year increase to €14.9m, with Codere Online noting that the prior year period was “partially impacted by marketing restrictions implemented in 2021”.

Mexico saw its figure close 80 per cent ahead YoY at €11.4m, while Colombia dropped to €800,000 from the €1.8m reported one year earlier.

Moshe Edree, CEO of Codere Online, said, “We are reporting a strong set of results in the third quarter of 2022, with net gaming revenue growing 54 per cent versus the same period last year, on the back of stronger than expected results in our casino business.

“Performance in Mexico was particularly strong, with net gaming revenue up by 82 per cent in the quarter. Spain also exceeded our expectations with a 29 per cent growth despite the marketing restrictions currently in place.”

Adding: “Given our strong results in Mexico and its significant growth potential, we will continue prioritising investment in this market going forward.”

For the YTD, total revenue is up 36 per cent to €80.1m (2021: €59.1m), with Spain, Mexico and Colombia all noting increases of 13 per cent, 73 per cent and 59 per cent to €42.2m (2021: €37.2m), €31m (2021: €17.9m) and €4.6m (2021: €2.9m), respectively.

Oscar Iglesias, CFO of Codere Online, added: “We are very encouraged by the acceleration in revenue growth as we approach the end of the year.

“With the World Cup still ahead of us, we are now confident that we will reach the high end of our full year net gaming revenue outlook and have narrowed the range to between €115m-120m.

“We are also excited about the opportunity in Argentina where we are putting the pieces in place to become one of the leading operators in the country.”

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