Strong first-quarter results reported by Codere are expected to intensify interest from potential investors ahead of the imminent sale of Spain’s second-largest gaming and betting operator.
So far, no formal takeover offer has been publicly announced, but a sale process is already underway and buyer interest is beginning to emerge. According to reports published in March, the hedge funds that own Codere hired Jefferies and Macquarie to manage the sale of the group, with a valuation reportedly close to €2 billion (£1.72bn).
In terms of profitability, Codere posted a significant improvement after reporting adjusted EBITDA of €6 million (£5.18m) in its first quarter of this year, an increase of €4.2 million (£3.63m), year-on-year.
Compared with the first quarter of 2025. The Spanish multinational also posted record quarterly NGR (Net Gaming Revenue) of €64.4 million (£55.69m), up 13 percent, year-on-year.
Growth
NGR in Spain reached €25.5 million (£22.05m) in Q1, representing growth of 16 percent, compared with the same period last year.
In Mexico, revenue totaled €30.4 million (£26.28m), while NGR climbed to €34.6 million (£29.92m), up 13 percent, y-o-y.
Codere’s Net Income reached €7 million (£6.05m) in the first quarter of 2026, compared with a net loss of -€700,000 (-£605,368) in the same quarter of 2025.
As of March 31 this year, the company reported a cash position of €56.2 million (£48.6m) – and no financial debt.
Codere delivered strong performances in Spain, Mexico and through its online division, Codere Online, reinforcing the latter’s role as a strategic pillar of the group while continuing to improve profitability and expand the company’s omnichannel business model.
Sale Narrative
According to Oren Dalal, publisher of GamingMarkets.com, a regulatory intelligence publication focused on gambling markets and gaming-sector investment risk, Codere’s latest quarterly performance strengthens the company’s “sale narrative”.
“Based on the reported results, the signal is not just revenue growth, but the fact that the company is showing positive adjusted EBITDA and net income in the same reporting period,” Dalal told iGamingFuture.
“In gaming M&A, the valuation question is whether buyers can treat that performance as repeatable across the full year and across Codere’s core regulated markets.
Value Generation
“Q1 gives the current owners a stronger basis to defend valuation, although buyers may still apply a discount for market concentration, debt structure, execution risk and public-company reporting discipline,” Dalal said.
For FY 2026, the company expects NGR of between €235 million and €245 million (£203.23m-£211.38m) and adjusted EBITDA of between €15 million and €20 million (£12.97m-£17.29m).
Codere closed 2025 with adjusted EBITDA of €225.1 million (£194.65m), exceeding budget targets and posting an increase of €46.6 million (£40.29m), or 26.1 percent, compared with 2024.
Spain, Codere Online and Argentina led value generation for the group last year, supported by strong performance across both retail and online channels.
“With leverage at 1.1 times adjusted EBITDA, Codere has a healthy capital structure that provides the stability required to undertake its next growth cycle and consolidate its leadership in the international market,” the company said in a statement accompanying its 2025 results.
Hedge Funds
Codere has been owned by hedge funds since a debt-for-equity restructuring agreement that stripped control from the founding Martínez Sampedro family.
Davidson Kempner is the company’s largest shareholder with a 13.3 percent stake, followed by Palmerston Capital, Deltroit Asset Management, System 2 Capital and Ivesco.
Founded in 1980, the group operates in regulated markets across Spain, Italy, Argentina, Mexico, Panama, Colombia and Uruguay, spanning both land-based gambling operations and online betting and gaming.
Little is known about the sale process, which is believed to still be in its early stages.
Indicative offers are expected this month, while binding bids could arrive in July.
Sustained Earnings
The goal would be to complete a transaction before the end of the summer.
The sale is expected to include both Codere’s land-based operations and Codere Online, the Nasdaq-listed online gaming operator with a strong presence in Spain and Latin America.
Interest is expected to come from both private equity firms and international gaming operators.
Dalal noted that buyers will ultimately focus on cash conversion — specifically, how much of the reported EBITDA can become durable free cash flow after financing costs, taxes and reinvestment.requirements.
“That will matter more to valuation than one profitable quarter,” he said.
“With the wider Codere sale process reportedly discussed at a multibillion-euro valuation, Q1 improves the current owners’ negotiating position.
“The final valuation, however, will depend on whether buyers see the quarter as evidence of a sustained earnings profile, not just a strong opening period,” Dalal concluded.
