Codere Online happy with ‘effectiveness’ of 2022 growth strategy

Moshe Edree, the outgoing CEO of Codere Online, has stated he is very pleased with the “effectiveness” of the operator’s growth strategy in 2022, which ultimately allowed it to exceed its net gaming outlook for the year.

Publishing its fourth quarter and full year financial results, the operator also declared revenue year-over-year improvement of 70 per cent in Q4, as well as full year revenue exceeding expectations and reaching €123m.

Edree also commented on his departure from the position of CEO, as well as his replacement and current COO Aviv Sher.

Codere Online Q4 supported by strong Mexico & Spain

For Q4, Codere Online stated it achieved net gaming revenue of €37.7m, a 70 per cent increase YoY (Q4 2021: €22.2m) thanks to a strong performance in Mexico and Spain.

Per region, Spain generated net gaming revenues of €17.8m (42 per cent growth, 2021: €12.6m), but Mexico wasn’t too far behind with €16.3m (106 per cent rise, 2021: €7.9m), while Colombia recorded €2.3m in revenue (56 per cent increase, €1.5m).

Adjusted EBITDA fell by 122.3 per cent to a negative €14.5m (2021: negative €6.5m) due to higher investment in marketing to support the growth acceleration in revenue, while net income came in at a loss of €17.4m.

“We are reporting better than expected Q4 and full year 2022 performance, with net gaming revenue growing by 70 per cent in the quarter and reaching €123m for the full year,” commented Edree.

“This success is a testament to our team’s dedication and focus on delivering an unparalleled online gaming experience for our customers.

“The World Cup undoubtedly played a significant role in keeping existing customers engaged but also attracting new customers during this quarter in which we had 54 per cent more active players than in the same period of 2021.”

Edree added: “In Mexico, net gaming revenue more than doubled from the prior year quarter, and was over €50m for the full year.

“Meanwhile, in Spain, we achieved a significant 42 per cent growth in net gaming revenue, reflecting our unwavering commitment to this market and to providing best-in-class products and experiences to our customers.

“These achievements underscore the effectiveness of our growth strategy and our ability to successfully deploy marketing spend.”

Full year revenue exceeds expectations

For the full year, net gaming revenue finished at €122.9m, a 48 per cent improvement YoY (2021: €83.2m) and exceeding expectations of €115m-€120m.

Spain was the highest earner per region for the year at €60m (20.7 per cent growth, 2021: €49.8m), followed by Mexico at €51.1m (83.4 per cent rise, 2021: €27.9m), and Colombia with €7.9m (71.1 per cent growth, 2021: €4.6m).

Adjusted EBITDA for 2022 was negative €50.3m, a 111.2 per cent decrease YoY (2021: negative €23.8m), while net income improved on the previous year but still came in at a loss of €45.9m (2021: €68m loss).

2023 outlook

For the year ahead, Codere Online expects 2023 to be a pivotal year for the operator’s path towards profitability, leading towards adjusted EBITDA being positive by 2024.

The operator has published net gaming revenue expectations between €140m-€150m and an adjusted EBITDA outlook of negative €20m-€30m.

“We are pleased to have exceeded our 2022 net gaming revenue outlook of €115-€120m and follow through on our commitment to investors in our first year as a public company,” stated Oscar Iglesias, CFO of Codere Online.

“For 2023, we aim to generate between €140-€150m of net gaming revenue while cutting our Adjusted EBITDA loss by half, to negative €20-€30m, and expect to be EBITDA and cash flow positive (for the full year) in 2024. 

“We continue to be very excited about the future and the opportunities that lie ahead, particularly in Argentina, where we are making significant progress towards starting operations in several new regions this year. We are confident in our ability to execute on our plans and continue delivering sustainable growth for our shareholders.”

CEO change

Edree has now stepped down from his position of CEO, but will continue to work for Codere Online as Executive Vice Chair of the Board.

COO Aviv Sher will be replacing Edree as CEO, bringing with him over 15 years of experience having previously worked for Neogames and Prime Gaming.

Edree stated: “I am very proud of what we have accomplished together in our first year as a public company, and I am grateful for the opportunity to have served as CEO during such a critical phase of expansion and growth.

“Aviv and I have been working together for over a decade and he has played a critical role in our success. I have full confidence in his leadership and his ability to build on our achievements, and take the company to even greater heights.”

Patrick Ramsey, Chair of Codere Online’s Board of Directors, added: “We are grateful to Moshe for his valuable contribution over these years. We look forward to continue working with him in his new role while we welcome Aviv and wish him the best leading the company into the future.”