Codere Online

Codere Online expects positive 2024 from Spanish and Mexican success

Codere Online has raised its guidance for 2023 and reiterated 2024 projections following a quarter which saw strong growth except its core markets, with the notable exception of Colombia.

Group-wide revenue for the three months ending 30 September stood at €43.2m (€30.6m), an increase of 41%, with revenue from the Spanish and Mexican markets rising by 27% and 62% respectively to €18.9m (€14.9m) and €21m (€12.9m).

This left revenue for the nine months of 2023 so far standing at €121.8m, an increase of 43% on corresponding Q3 2022 revenue of €85.2m. Again, Mexican and Spanish revenues rose, respectively by 30% and 63% to €54.9m (€42.2m) and €56.6m (€34.8m).

In contrast to Q3, however, the group’s revenue from Colombia was positive for the full nine months. Year-to-date revenue from the country was recorded at €6.2m, up 11% from €5.6m the year prior, however for Q3 it slumped 5% year-on-year from €1.9m to €1.8m.

“We’re very pleased with our performance in the third quarter and to be presenting another set of impressive results,” said Aviv Sher, CEO of Codere Online.

“This quarter we not only posted significant net gaming revenue growth of 41% to €43m, but also took a significant step in our path to profitability with break even Adjusted EBITDA in the period. 

“It was a solid quarter for sports betting, with the return of the major sporting events, but also for our casino product, which contributed 58% of our revenue in the period.”

Singling out Mexico, Sher noted that the North American nation has become the Codere Online’s largest market, ahead of Spain – where the country has its roots – although net gaming revenue continued to grow in the latter.

Growth rates for the company corresponded to active customer numbers – in Spain Q3 active customers rose 16% from 32.5 million to 41 million, in Mexico by 39% from 37.4 million to 51.8 million whilst Colombian numbers dropped 6% from 24.2 million to 22.7 million.

Meanwhile, active customers from other markets rose 20% in Q3 2023 from 7.5 million to nine million  million, with revenue for the quarter up 67% from €900,000 to €1.5m and up 52% from €2.7m to €4.1m for YTD.

Closing Q3, Codere Online declared a total cash position of €43m as of 30 September, whilst consistent revenue growth saw the group’s net loss reduced from €11.6m in Q3 2022 to €1.8m.

Having listed on the US Nasdaq two years ago – becoming the first Spanish-language market-oriented gambling company to do so – Codere has been working towards achieving profitability and positive adjusted EBITDA.

Following successive growth in the first, second and third quarters of the year, the group now expects to close 2023 with net gaming revenue of between €155-165m, although also projecting negative EBITDA of €10-18m. Looking ahead to 2024, the firm anticipates to be EBITDA and cash flow positive for the full year.

Oscar Iglesias, CFO of Codere Online, remarked: “Our third quarter results have shown that the combination of a strong brand, high-quality customer acquisitions and an attractive product offering has allowed us to deliver not only strong top line growth but also a significant improvement in profitability, with our first quarter of breakeven Adjusted EBITDA less than two years following our US listing.”

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