Codere Online Reports Q1 2024 Financial Results

Codere Online, a prominent online gaming operator in Spain and Latin America, has released its preliminary unaudited financial results for the first quarter of 2024. The company reported total revenue of €50.4 million (43.2 million/US$54.8 million) for Q1 2024, with net gaming revenue reaching €53.0 million, marking a 34% increase compared to Q1 2023.

In Mexico, revenue for Q1 2024 was €23.8 million, while net gaming revenue was €26.6 million, a significant 51% increase from the same period in 2023. Spain also showed strong performance, with revenue and net gaming revenue reaching €22.3 million, up 21% from Q1 2023. Net income for Q1 2024 was €3.4 million, a notable improvement from a net loss of €1.3 million in Q1 2023. The company’s total cash position as of March 31, 2024, stood at €38.5 million. Based on these results, Codere Online has increased its full-year 2024 net gaming revenue outlook to €195-210 million and reiterated its plan to be Adjusted EBITDA and cash flow positive for the year.

Codere Online continues to grow its presence in Latin America, with recent developments including the anticipated launch in Mendoza, Argentina, subject to final regulatory authorization. Mendoza, the fifth most populated province in Argentina with over 2 million people, will expand Codere Online’s operations in the country, complementing its existing presence in the City of Buenos Aires and its pursuit of a license in the Province of Buenos Aires.

Additionally, Codere Online has renewed its relationship with the Monterrey Rayados Football Club, extending its role as the Official Betting Partner for the next four seasons and becoming the Main Sponsor of the women’s team, Rayadas. This sponsorship is expected to bolster Codere Online’s growth strategy in Latin America through local activations and marketing initiatives. On April 9, 2024, the Board of Directors appointed Daniel Valdez as a member of the Board and the Audit Committee. Valdez previously served on the Board from the business combination’s consummation in November 2021 until August 2023.

The detailed financial and operating metrics for the period are as follows: In Spain, Q1 2024 net gaming revenue was €22.3 million, a 21% increase from €18.4 million in Q1 2023. The average monthly active players rose by 24% to 50,000. In Mexico, Q1 2024 net gaming revenue reached €26.6 million, up 51% from €17.6 million in Q1 2023. The average monthly active players increased by 26% to 62,500. Other regions reported Q1 2024 net gaming revenue of €4.1 million, a 17% increase from €3.5 million in Q1 2023, although the average monthly active players declined by 11% to 30,600.

Codere Online remains committed to its growth and expansion strategies, with a focus on delivering exceptional value and services in the iGaming market.

Aviv Sher, CEO of Codere Online, commented on the results, “We are off to a strong start in 2024, with net gaming revenue of €53 million in the first quarter, 34% above that of last year and once again our highest ever quarterly figure. Our focus on Mexico and Spain continues to yield impressive results, with net gaming revenue in Mexico growing by 51% in the first quarter to nearly €27 million. In Spain, meanwhile, net gaming revenue grew by 21% to over €22 million. In both markets, our targeted marketing efforts allowed us to grow our active customer base by c. 25% as a result of the acquisition of higher quality customers (i.e. lower churn) but also with an increased spend per active.”

Oscar Iglesias, CFO of Codere Online, stated, “Once again, top line growth exceeded our expectations in the first quarter, with Mexico continuing to put distance on Spain as our largest market by revenue. We are particularly excited, however, to see Mexico now also contributing positive Adjusted EBITDA for the first time. This, together with a strong performance by Spain, allowed us to generate €1.7 million in total Adjusted EBITDA in the first quarter, which represents a significant step towards achieving our full year profitability targets.”

Mr. Iglesias further added, “On the back of this strong performance in the first quarter and based on recent trading activity, we now expect to generate between €195-210 million of net gaming revenue in 2024, and reaffirm that we expect to generate positive Adjusted EBITDA and cash flow for the full year in 2024.”

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