Codere Online net gaming revenue rises 8% in Q1

Codere Online has reported an impressive net gaming revenue of €57 million for Q1, marking an 8% year-on-year increase. This growth is significantly buoyed by a 15% rise in revenue from Mexico, despite the ongoing challenges posed by the depreciation of the peso. Notably, on a constant currency basis, Mexican revenue would have surged by 34%.

However, the financial landscape was mixed, with revenue from Spain showing a slight decline of 2% year-on-year, totaling €21.9 million. In contrast, the segment labeled ‘other’ revenue, which encompasses markets such as Argentina, Colombia, and Panama, exhibited a robust 10% increase, reaching €4.5 million. The company also reported a noteworthy 44% increase in EBITDA, amounting to €1.3 million, with adjusted EBITDA rising 6% to €1.8 million. Yet, Codere Online faced a net loss of €0.7 million due to escalating interest expenses.

The impact of regulatory changes in Colombia was evident, with the introduction of a new 19% tax on player deposits in February adversely affecting revenue from that market. In light of these challenges, the company has paused its expansion initiatives in Colombia while reassessing its strategic approach. To mitigate the revenue shortfall from Colombia, Codere Online is optimistic about growth prospects in Panama.

Chief Financial Officer Oscar Iglesias stated:

“The situation in Colombia remains uncertain as we strategize to mitigate the deposit tax impact. Meanwhile, Panama is delivering promising results following our recent product enhancements.”

CEO Aviv Sher emphasized:

“Codere Online will adopt a cautious stance regarding new market entries, particularly in Colombia given the current regulatory landscape. However, as we look forward to the 2026 World Cup, which will be co-hosted by Mexico, the U.S., and Canada, we aim to ramp up our investments in Mexico to capitalize on emerging opportunities.”

For the full year, Codere Online has forecasted a revenue range of €220 million to €230 million, alongside an adjusted EBITDA expectation of €10 million to €15 million. Regarding its Nasdaq listing, the company anticipates receiving another delisting notice due to delays in submitting its 2024 report, which it aims to file by the end of May to rectify the situation.

In summary, while Codere Online navigates various challenges in key markets, its strategic investments, particularly in Mexico ahead of significant events like the World Cup, signal its commitment to pursuing growth within the dynamic gambling industry landscape.