Codere Online, a prominent online gaming operator in Spain and Latin America, has released its preliminary unaudited financial results for the quarter ending June 30, 2024.
For the second quarter of 2024, Codere Online reported total revenue of €51.7 million (£43.6 million/US$56 million), with net gaming revenue reaching €54.4 million, marking a 39% increase compared to Q1 2023. In Mexico, the company achieved revenue of €25.3 million and net gaming revenue of €28.2 million, representing a significant 57% rise from Q2 2023. Spain also saw notable growth, with revenue and net gaming revenue climbing to €21.8 million, a 25% increase from the previous year.
The net income for H1 2024, excluding the non-cash variation in the fair value of public warrants, was €5.5 million, a substantial improvement compared to a net loss of €0.7 million in H1 2023. As of June 30, 2024, Codere Online’s total cash position was €40.5 million. Reflecting this strong performance, the company has upgraded its full-year 2024 net gaming revenue outlook to between €205 million and €215 million and adjusted EBITDA to a positive range of €2.5 million to €7.5 million.
In Spain, net gaming revenue for Q2 2024 reached €21.8 million, up 25% from the previous year. In Mexico, net gaming revenue soared to €28.2 million, a 57% increase from Q2 2023. Other regions contributed €4.4 million in net gaming revenue, a 22% year-over-year increase. Overall, the total net gaming revenue for Q2 2024 was €54.4 million, reflecting a 39% increase compared to Q2 2023.
The average number of monthly active players also saw growth, with Spain reaching 51,500, up 26%, and Mexico reaching 62,300, up 25%. Despite a 10% decline in other regions, the total average monthly active players increased by 16% to 145,600.
For the first half of 2024, Spain reported net gaming revenue of €44.1 million, a 23% increase from the previous year. Mexico’s net gaming revenue was €54.8 million, a 54% rise. Other regions contributed €8.5 million, a 21% increase. The total net gaming revenue for the first half of 2024 was €107.4 million, a 37% increase from the same period in 2023.
Adjusted EBITDA for Q2 2024 was €1.3 million, a notable improvement compared to a loss of €4.5 million in Q2 2023. This positive shift is attributed to strong performance in Spain and Mexico, with Spain achieving an adjusted EBITDA of €6.0 million and Mexico reaching €0.2 million. Other regions reported an adjusted EBITDA loss of €1.0 million. For the first half of 2024, adjusted EBITDA was €3.0 million, compared to a loss of €7.6 million in H1 2023.
Codere Online’s performance in the second quarter of 2024 demonstrates its robust growth trajectory and strategic market expansion, particularly in key regions such as Spain and Mexico. The company’s enhanced financial outlook for the remainder of the year reflects its confidence in continuing this upward trend.
Aviv Sher, CEO of Codere Online, commented on the results, “We are very pleased with our performance in the second quarter of 2024, with net gaming revenue of €54.4 million, a 39% increase over the prior year period. In the quarter we saw improved customer engagement and customer acquisitions in part due to targeted additional marketing investments made around certain major sports betting events (i.e. Eurocup and Copa America). As a result, performance in our core Mexican and Spanish businesses was strong (notwithstanding all the Spanish victories in the Eurocup), with net gaming revenue growing by 57% in the second quarter in Mexico to over €28 million and 25% in Spain to nearly €22 million.”
Oscar Iglesias, CFO of Codere Online, stated, “We are pleased to have delivered positive Adjusted EBITDA for the second consecutive quarter despite the increased marketing spend around the Eurocup and Copa America. The €1.3 million in Adjusted EBITDA in the second quarter is nearly €6 million better than the prior year period and for the year-to-date period we have generated €3.0 million.”
Mr. Iglesias further added, “Thanks to this solid performance in the first half of the year, we are well on track to meet the profitability and cash generation expectations we set out to achieve in the beginning of the year, while still delivering significant top line growth. As such, we are raising our outlook for the full year 2024 and now expect to generate between €205 – 215 million of net gaming revenue, which represents a growth of 22% year-on-year at the midpoint, and between €2.5 – 7.5 million of positive Adjusted EBITDA.”
