Codere Online Q1 Results Show Strength In Latin America

In the first quarter of 2025, Codere Online reported a robust 8% increase in net revenue, totaling €57 million. This growth is notable despite fluctuations in currency exchange rates, particularly in its key Latin American markets—Mexico, Colombia, and Argentina—where overall revenue surged by 17% when adjusted for currency effects.

Among its markets, Mexico emerged as a standout performer. The operator experienced a remarkable 15% year-over-year revenue growth, amounting to €30.5 million, even amidst a challenging economic environment characterized by a 16% devaluation of the Mexican peso. In constant currency, this growth leaps to an impressive 34%, driven primarily by a 31% rise in monthly active players.

CEO Aviv Sher remarked on the optimistic outlook, stating, “We have started the year strongly, achieving a net gaming revenue of €57.0 million for the first quarter—an 8% increase compared to the previous year. In Mexico, our net gaming revenue rose by 15%, despite currency challenges. Meanwhile, revenue from Spain saw a slight decline, totaling €21.9 million.”

Furthermore, adjusted EBITDA showed modest improvement, climbing to €1.8 million from €1.7 million in Q1 2024. The company’s cash reserves remained solid at €41.8 million at the end of the quarter. However, it’s important to note that rising operational costs resulted in a net loss of €0.7 million.

Codere Positioned for Growth in 2025

In light of its results, Codere has ramped up its personnel and marketing investments by over €2 million. Despite the reported loss, CFO Oscar Iglesias expressed confidence in achieving the company’s financial targets for the year. He stated, “Our Q1 results place us on course to meet our net gaming revenue forecast of €220-230 million, alongside an adjusted EBITDA target of €10-15 million that we shared with our investors earlier this year.”

While the performance in Mexico is commendable, there are concerns regarding Codere’s other markets. Revenue in Spain dipped by 2%, and although player numbers increased in Panama, Argentina, and Colombia, the count of monthly active players dropped by 11%. The company’s increased expenditure on marketing and personnel underscores the urgency for improved performance in these regions, particularly if the peso remains unstable. Despite the loss reported, Codere is optimistic about a turnaround, having repurchased $0.5 million in shares as part of a broader $5.0 million share buyback initiative.

Strategic Focus on Core Markets

Codere’s mission centers on becoming the leading online gaming and sports betting operator in Latin America. The company is eyeing expansion into newly regulated markets, especially Brazil, Chile, Peru, Puerto Rico, and Uruguay, while also exploring avenues to tap into the sizable U.S. Hispanic market.

However, CEO Aviv Sher has clarified that Codere will not pursue entry into Brazil at this time, citing significant cultural and linguistic barriers and the need for substantial investment to establish a foothold in the market.

As Codere navigates these challenges and opportunities, its strategic focus on core markets and investment in growth initiatives will be critical to sustaining its upward trajectory in the competitive online gambling landscape.

Adam Roarty brings extensive experience in the gambling sector, having cultivated his expertise as a writer and editor for notable platforms such as Oddschecker, CoinTelegraph, and Gambling Industry News over the past five years.