Codere Online continued its robust momentum in Q2 trading as strides were made across its European and Latin American active markets.
The Nasdaq enterprise, which focuses on Spanish-speaking betting markets, reported total revenue growth of 35% year-on-year to €37m (Q2 2022: €34m), with a similar uptick of 34% for net gaming revenue to €39m (€26m).
This enabled the company to further reduce its net loss from €6.7m last year to €1.7m, a drop of 75%, and close the quarter with a cash position of €45m. Adjusted EBITDA rose 49% from a €9m loss to a €4.5m loss.
“We’re glad to present a strong set of second quarter results and to continue building upon the momentum from the first quarter,” said Aviv Sher, CEO of Codere Online.
“Our net gaming revenue grew 34% to €39m in line with the level from the first quarter
despite the seasonal decline in sporting events. Our casino product, which has been a strategic priority for some time, contributed 54% of our revenue in the period.”
Part of the wider omnichannel Grupo Codere, Codere Online is also active in the Latin American markets of Colombia, Panama and the City of Buenos Aires. Codere Group also maintains retail properties in Spain and Latin America.
A breakdown of its core markets saw successful growth in both, with its home market of Spain seeing revenue increase 24% to €17.5m (€13m). Meanwhile, Mexican NGR also rose 51% from €12m to €18m, resulting in total revenue from the market increasing 53% from €11m to €16m.
In Colombia, NGR dipped slightly by 5% from €2.2m to €2.1m, but revenue as a whole increased 35% from €1.7m to €2.3m. NGR in the company’s remaining markets rose by 40% from €1m to €1.4m, driving a revenue uptick of 20% to €1.2m (€1m).
Sher continued: “Mexico posted impressive top line growth of 51% in the second quarter, reaching €18m and surpassing Spain for the first time since launching operations in the country. In Spain, net gaming revenue grew by an equally impressive 24% to €17.5m.”
Codere Online’s performance in Q2 marks a continuation of a positive trend for the company from the first quarter, when it recorded total revenue of €37.6m (Q1 2022: €23.9m), an increase of 57%.
This successive growth in Q2 has prompted the group to update its guidance for the rest of the year. The firm now expects net gaming revenue of between €150m-€160m and adjusted EBITDA between €15m-€25m, and to be both EBITDA and cash flow positive for the full year in 2024.
Post quarterly developments have seen the company initiate an investigation into possible fraudulent activity in Spain after €500,000 was withdrawn by one customer from an online account into a third-party affiliate gaming hall.
Changes were also made to company senior management in August, with newly appointed CEO of Codere Group, Gonzaga Higuero, taking a seat as one of five members of the Board of Directors of Codere Online.
This followed the addition of Michal Elimelech to the Codrere Online Board of Directors in June, replacing Oscar Iglesias, although the latter continues to hold the position of the company’s Chief Financial Officer.
On Q2 results, Iglesias said: “We continue delivering strong revenue growth, despite a lower level of marketing investment, on the back of strong brand recognition, higher quality customers and continued improvement in our product offering.
“This has allowed us to reduce our adjusted EBITDA loss by more than half to negative €4.5m in the second quarter we feel very encouraged by first half results, which continue to exceed our original expectations, and now expect to generate between €150m-160m of net gaming revenue in 2023, a 7% increase at the midpoint versus our prior outlook.
“In regards to adjusted EBITDA, we expect to deliver negative €15m-25m, and believe we are well on track to deliver positive EBITDA and cash flow for the full year in 2024.”