Codere Online reports 33% rise in revenue in H1
The future spinoff Codere Online has reported revenue of €41.7m for the first half.
Spain.- Codere Online has reported that net gaming revenue for 1H21 rose 33 per cent year-on-year at €41.7m, up from €31.4m in 2020. The growth was driven by a 64 per cent increase in active monthly players from 41,100 to 67,400.
Revenue from Spain, which continued to account for the lion’s share, rose 19 per cent year-on-year to €25.6m as the average number of monthly active players rose 42 per cent 34,000.
In Latam revenue rocketed 69 per cent in Colombia (€12.8m) and 134 per cent in Mexico (€2.2m), with average monthly players up 131 per cent and 68 per cent respectively, to 15,600 and 17,100. Other regions saw revenue fall by 25 per cent to €1m although player numbers rose 174 per cent to 6,000.
Codere Online managing director Moshe Edree said: “We continue to expand our footprint across Latin America and are eager to deploy our comprehensive marketing strategy once the business combination with DD3 is completed.
“As part of this marketing strategy, we have already strengthened our presence in Latin America through alliances with key football teams in the region, like Rayados in Mexico and River Plate in Argentina, with whom we signed sponsorship agreements in July.”
Results for the second quarter, ending June 30, showed a similar trend. Edree said: “Our second-quarter results reflect the strong revenue trends in Spain and substantial growth achieved across Latin America, with a 43 per cent year-on-year increase in our total net gaming revenue. This performance was driven by a 142 per cent increase in average active players in the second quarter.
“Beginning in the second quarter of 2021, we started to face the expected regulatory headwinds in the Spanish market that have limited our, and all online gaming operators’, ability to offer player bonuses and other marketing activities (advertising and sponsorships). Nonetheless, the company has adapted to this new environment and generated substantial revenue growth.
“In Mexico, our second-largest market, we more than doubled our net gaming revenues in Q2 2021, partially due to the impact from Covid on sporting events in Q2 2020, but also on the back of our differentiated omni-channel offering to our customers.
“Additionally, since we migrated our Mexican online platform in early March, our systems are better prepared to manage the higher customer volume and will offer customers a better, more reliable, user experience.”
Codere Online is due to be spun off from Codere and traded on the Nasdaq through a deal with special purpose acquisition company (SPAC) DD3 Acquisition Corp.
Meanwhile, Codere’s main business will pass into the hands of creditors through a debt-for-equity agreement due to close on November 5.
