Codere Online Releases Q2 2023 Financial Update and Board Changes

Codere Online, an igaming operator in Spain and Latin America, has reported its financial data for the quarter ending June 30, 2023.

The Q2 2023 total revenue amounted to €37.1 million (£31.7 million/US$40.2 million). Net gaming revenue for the same period was €39.1 million, which was 35% and 34% higher than Q2 2022, respectively. For Q2 2023, revenue from Mexico was €16.2 million and its net gaming revenue was €18.0 million. This is a 51% increase from Q2 2022. In Spain, the revenue and net gaming revenue both were €17.5 million for Q2 2023, showing a 24% increase from Q2 2022. The company reported a net loss of €1.7 million in Q2 2023, compared to a net loss of €6.7 million in Q2 2022. As of June 30, 2023, the company’s cash position was over €45 million.

The company has revised its projections for 2023 net gaming revenue to €150-160 million and Adjusted EBITDA to negative €15-25 million. Codere Online also aims to achieve positive EBITDA and cash flow in 2024.

In a board meeting held on August 30, 2023, Gonzaga Higuero replaced Daniel Valdez, who was nominated by Codere Newco S.A. Higuero was recently appointed as the CEO of Codere Group. In the Annual General Meeting on June 22, 2023, Michal Elimelech took over Oscar Iglesias’s board position, with the latter continuing as the CFO of Codere Online.

Codere Online will participate in the SBC Awards in Barcelona on September 21, 2023, with nominations in several categories.

Additionally, the company reported a fraudulent withdrawal incident in Spain. An individual made withdrawals totaling €0.5 million from an online account in an affiliate retail gaming hall. The company has initiated an investigation and is looking to recover the funds.

Aviv Sher, CEO of Codere Online, stated, “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 €39 million, 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”.

Mr. Sher further added, “Mexico posted impressive top line growth of 51% in the second quarter, reaching €18.0 million 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 €17.5 million.”

Oscar Iglesias, CFO of Codere Online, stated, “We continue delivering strong revenue growth, despite a lower level of marketing investment, on the back of strong brand recognition, higher quality customers and continued improvement in our product offering. This has allowed us to reduce our Adjusted EBITDA loss by more than half to negative €4.5 million in the second quarter.”

Mr. Iglesias further added, “We feel very encouraged by first half results, which continue to exceed our original expectations, and now expect to generate between €150-160 million of net gaming revenue in 2023, a 7% increase at the midpoint versus our prior outlook. In regards to Adjusted EBITDA, we expect to deliver negative €15-25 million, and believe we are well on track to deliver positive EBITDA and cash flow for the full year in 2024.”