Codere Online ups outlook following Mexican growth

In a trading update for the three months to 30 June 2023, the Spain and Latin America-focused online gaming business saw a double-digit rise in net gaming revenue and decreased losses.

Impressive figures from Mexico and Spain led to an increase in net gaming revenue outlook for 2023 to €150m-160m. Adjusted EBITDA is now expected to be between €15m-25m, with the group targeting EBITDA and cash flow positivity for the full-year in 2024.

Total revenue was up 35% year-on-year to €37.1m with net gaming revenue up 34% at €39.1m. Codere Online now has 125,800 active monthly players, which is up 20% on Q2 2022.

Mexico replaced Spain as the group’s biggest market as it grew 51% to €18.0m in net gaming revenue. Active players in the Central American country now total 49,000 per month, which is up 54%.

Net gaming revenue in Spain was up 24% to €17.7m, with an 11% leap in active players to 40,700.

While Codere Online saw a drop in revenue within its small Colombia division, its other markets were up 40% to €1.4m.

Codere builds on Q1 momentum

Adjusted EBITDA was negative €4.5m in Q2, which was an improvement on the €9.9m loss during the same period in 2022.

While expenses were up compared to the prior period they were down compared to the revenue generated. Marketing was the biggest outgoing at €19.1m, which was 48.8% of Q2 2023 revenue compared to 66.2% in Q2 2022.

Net loss was €1.7m versus a net loss of €6.7m in Q2 2022. The group’s total cash position was over €45m at the end of the period compared to €49m at the end of Q1.

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% 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.

“Mexico posted impressive top line growth of 51% 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% to €17.5m.”

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