Codere Online posts strong Q3 results amid Nasdaq delisting threat
A hearing on Codere Online’s potential delisting has been scheduled for January 16.
Spain.- Codere Online has reported net gaming revenues of €52m for Q3, a rise of 20 per cent from the same quarter last year. Revenue from the operator’s native Spain was up 11 per cent to €48m while revenue from Mexico rose by 23 per cent to €63m despite being hit by currency fluctuations.
The company said it now expects to complete the year “in the upper part of both the full-year 2024 net gaming revenue outlook of €205–€215m and Adjusted EBITDA outlook of positive €2.5–€7.5m”. Year-to-date revenue is up 31 per cent at €159m.
Codere Online CEO Aviv Sher said: “Our company delivered another quarter of strong results, with net gaming revenue of €51.7m, representing a 20% increase over the third quarter of 2023. In Mexico, net gaming revenue reached €26.7m, 27% above the prior year period, despite the significant devaluation of the Mexican peso following the presidential election in June. In constant currency terms, our net gaming revenue in the country would have grown by 43%. Meanwhile, performance in Spain remained strong, with net gaming revenue of €20.9m in the quarter, 11% above last year.”
CFO Oscar Iglesias said: “Beyond the significant top-line growth, we also generated €1.5m of adjusted EBITDA and €3.5m of cash in the quarter. This is now the third consecutive quarter of positive adjusted EBITDA and brings the year-to-date total to €4.5m. With regards to our existing outlook for 2024, we expect to finish the year in the upper part of the range with respect to both our net gaming revenue and adjusted EBITDA guidance.”
Leadership highlighted improved cost controls and lower interest expenses. The company said it continues to work to file its Form 20-F for 2023 amid the threat of delisting from the Nasdaq. The company has requested a hearing on the delisting. This has been scheduled for January 16.
In June, Codere Online appointed three new members to its board of directors. Gabriel Saenz de Buruaga, Taavi Davies and Claude Noesen replace Patrick Ramsey, Michal Elimelech and Laurent Teitgen. They will initially serve for one-year terms.
Meanwhile, Codere Group is turning its attention to plans for expansion in Latin America and Europe after completing a recapitalisation programme that reduced corporate debt from €1.4bn to €190m. Consolidated net debt has been reduced to around €65m to ensure the stability of the company, while an additional €60m in new financing will support growth plans
