Codere Online records double digit NGR growth in Q2 driven by Mexican, Spain performance

Online sports betting and casino operator Codere Online showcased a double-digit increase in net gaming revenue in Q2 2023, accompanied by reduced losses.

Total revenue for Q2 2023 recorded a 35% year-on-year increase, reaching $40.23 million (€37.1 million), while net gaming revenue surged by 34% to $42.40 million (€39.1 million). Codere Online also reported a substantial growth in active monthly players, totaling 125,800, marking a 20% increase compared to Q2 2022.

The surge in figures was primarily attributed to results from Mexico and Spain, which consequently led to an upward revision of the net gaming revenue outlook for 2023, now ranging from $162 million (€150 million) to $173.5 million (€160 million).

Adjusted EBITDA is projected to fall between a negative $16.27 million (€15 million) and $27.11 million (€25 million), with a strategic goal of achieving EBITDA and cash flow positivity for the full year in 2024.

Mexico emerged as Codere Online’s largest market in the quarter, achieving a 51% growth in net gaming revenue to $19.52 million (€18.0 million). The number of active players in Mexico also saw significant growth, surging by 54%. It surpassed Spain’s performance for the first time since its operations in the country commenced.

In Spain, net gaming revenue climbed by 24% to $18.98 million (€17.5 million), accompanied by an 11% increase in active players, reaching 40,700. Despite a decrease in revenue within the smaller Colombian division, Codere Online’s other markets collectively grew by 40% to $1.52 million (€1.4 million).

In terms of other financials, adjusted EBITDA for Q2 2023 showed a marked improvement, with a negative $4.88 million (€4.5 million) compared to a $10.74 million (€9.9 million) loss during the same period in 2022.

Expenses saw an increase compared to the previous period but were notably lower in proportion to the generated revenue. Marketing expenses accounted for $20.71 million (€19.1 million), constituting 48.8% of Q2 2023 revenue, compared to 66.2% in Q2 2022.

The net loss for Q2 2023 was $1.84 million (€1.7 million), a significant reduction from the $7.27 million (€6.7 million) net loss reported in Q2 2022. The company’s total cash position was over $48.80 million (€45 million) at the end of the period, compared to $53.14 million (€49 million) at the end of Q1.

Aviv Sher, CEO of Codere Online, expressed satisfaction with the Q2 results, emphasizing the company’s 34% growth in net gaming revenue, despite the usual 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,” he noted.

Oscar Iglesias, CFO of Codere Online, highlighted their strong revenue growth despite reduced marketing investment, driven by strong brand recognition, higher-quality customers, and product enhancements. 

“This has allowed us to reduce our Adjusted EBITDA loss by more than half to negative $4.88 million (€4.5 million) in the second quarter,” Iglesias pointed out. He added that the company’s first-half results exceeded their original expectations.

In addition to the financial results, Codere Online also noted a recent incident of fraudulent withdrawals totaling $0.54 million (€0.5 million) in Spain, originating from a customer’s online account in a third-party retail gaming hall. The company is actively investigating the matter and will pursue the recovery of the misappropriated funds.

Access the full Q2 2023 report here.