Codere Online reports double-digit rise in Q2 revenue

Revenue was up 35 per cent year-on-year.

Spain.- Codere Online has reported revenue of €37.1m for Q2, a rise of 35 per cent year-on-year. Net gaming revenue was up 34 per cent to €39.1m. It reported that it had 125,800 active monthly players, a rise of 20 per cent year-on-year.

Mexico and Spain drove the growth, with Mexico moving into the lead as the group’s biggest market. Mexican net gaming revenue rose 51 per cent to €18m on the back of a 54 per cent rise in active monthly players to 49,000. In Spain, net gaming revenue was up 24 per cent at €17.7m, while the number of active monthly players rose by 11 per cent to 40,700.

The only market to see a drop in revenue was Colombia, which is a small division. Other markets saw revenue rise 40 per cent to €1.4m. Adjusted EBITDA was negative €4.5m, and improvement against negative €9.9m in Q2 2022.

As a result, Codere Online has revised upwards its full-year revenue expectations to between €150m and 160m. Adjusted EBITDA is expected to reach €15m to 25m. The company expects to reach full-year EBITDA and cash flow positivity in 2024.

Chief executive Aviv Sher said: “We’re glad to present a strong set of second quarter results and to continue building upon the momentum from the first quarter. Our net gaming revenue grew 34 per cent 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 per cent of our revenue in the period.

“Mexico posted impressive top line growth of 51 per cent in the second quarter, reaching €18.0m and surpassing Spain for the first time since launching operations in the country. In Spain, net gaming revenue grew by an equally impressive 24 per cent to €17.5m.”

Sher took over as CEO in March, replacing Moshe Edree. The announcement of the change came just a day after Codere Online reported stronger-than-expected Q4 results, rounding off its first year after it was spun off from Codere through a SPAC deal to list on the Nasdaq in New York.

Q4 2022 revenue was €35.6m, up 70 per cent year-on-year. Full-year revenue was €122.9m, up 48 per cent. A breakdown of Q4 shows that revenue from Codere Online’s Mexican operations more than doubled to €14.5m, while revenue from Spain rose 42 per cent to €17.8m.