Codere Online has declared its highest-ever quarterly revenue figure in the fourth quarter of 2023, with casino operations exceeding expectations.
Reflecting on the results, CFO Oscar Iglesias stated that the operator expects to generate a positive adjusted EBITDA and cash flow in 2024.
Codere Online’s casino operations exceed expectations
Publishing its financials, Codere Online reported a total revenue for Q4 of €46.9m, a 32 per cent increase year-over-year (Q4 2022: €35.6m) with net gaming revenue of €50.1m, a 33 per cent uptick (Q4 2022: €37.7m). Casino operations exceeded expectations by contributing towards 58 per cent of the quarter’s total net gaming revenue.
For the full year, total revenue grew by 41 per cent YoY to €162.6m (2022: €115.7m) with a net gaming revenue of €171.9m, up 40 per cent (2022: €122.9m).
Although revenue grew, Codere Online declared a net loss of €1m in Q4, but this was an improvement in comparison to a net loss of €17.4m during the same period the previous year.
Net income also came in at a loss for the full year of €3.1m, but this was an improvement as well on the previous year’s loss of €45.9m.
Q4 adjusted EBITDA came in at a €4.1m loss, up 72.1 per cent YoY (Q4 2022: €14.7m loss). For the full year, adjusted EBITDA was a €11.7m loss, a 77.1 per cent increase (2022: €51.2m loss). As of December 31, 2023, cash and equivalents was €41.3m.
Iglesias stated: “Our fourth quarter results have allowed us to reach nearly €172m of net gaming revenue for the full year, 19 per cent above the midpoint of the initial €140m-€150m outlook we provided early last year.
“This outperformance, combined with the overall lower level of marketing investment, also allowed us to deliver a better than expected negative €12m in adjusted EBITDA versus the initial outlook of negative €20m-€30m.”
Aviv Sher, CEO of Codere Online, added: “In Q4 2023 we delivered an impressive 33 per cent growth in net gaming revenue to €50 million, our highest ever quarterly figure, despite a tough comp with the World Cup in the prior year period.
“Our strategic focus on Mexico and Spain, where we are seeing a strong return on marketing investment, has proven successful, with significant increases in both our active customer base and spend per customer. Casino continued to exceed our expectations with a second consecutive quarter contributing 58 per cent of total net gaming revenue in the period.”
Mexico in pole position
In comparison to the same period the previous year, Mexico overtook Spain as the largest revenue contributor during Q4, while Colombia’s operations remained consistent.
Mexico’s Q4 revenue was €22.6m, up 56 per cent YoY (Q4 2022: €14.5m) while net gaming revenue was €25.1m, a 54 per cent increase (Q4 2022: €16.3m). Average monthly active players during the period was 591,000, up 16 per cent (Q4 2022: 508,000).
For 2023, Mexico’s revenue was €73.3m, a 61 per cent YoY improvement (2022: €45.5m) while bet gaming revenue was €81.7m, a 60 per cent uptick (2022: €51.1m). Average monthly active players was 525,000, up 37 per cent (2022: 385,000).
Spain’s Q4 revenue and net gaming revenue both rose by 17 per cent YoY to €20.8m (Q4 2022: €17.8m). Average monthly active players was 474,000, up 15 per cent (Q4 2022: 413,000).
For the full year, Spain’s revenue and net gaming revenue both grew by 26 per cent YoY to €75.7m (2022: €60m). Average monthly active players was 423,000, up 11 per cent (2022: 381,000).
Sher noted: “Our net gaming revenue in Mexico grew by 54 per cent in the fourth quarter, reaching more than €25m, whereas net gaming revenue in Spain, grew by 17 per cent, to nearly €21m.
“We were able to grow our active customer base by more than 15 per cent in both markets in the quarter which we believe is impressive considering the similar level of marketing investment in these countries in 2023 versus the prior year.”
Colombia remains consistent
Colombia’s Q4 revenue improved by 17 per cent YoY to €2.8m (Q4 2022: €2.4m) while net gaming revenue remained consistent with previous year comparatives at €2.3m. Average monthly active players was 230,000, down 40 per cent (Q4 2022: 385,000).
For 2023, Colombia’s revenue rose by 33 per cent YoY to €9.3m (2022: €7m) with net gaming revenue of €8.5m, up eight per cent (2022: €7.9m). Average monthly active players was 243,000, down 15 per cent (2022: 287,000).
Other operations revenue in Q4 declined by 22 per cent YoY to €700,000 (Q4 2022: €900,000), with a net gaming revenue of €1.8m, up 38 per cent (Q4 2022: €1.3m). Average monthly active players was 96,000, down 14 per cent (Q4 2022: 112,000).
For the full year, other revenue rose by 38 per cent YoY to €4.4m (2022: €3.2m), while net gaming revenue improved by 54 per cent to €6m (2022: €3.9m). The average monthly active players was 92,000, up 17 per cent (2022: 79,000).
2024 guidance
Looking ahead, Codere Online expects a 2024 net gaming revenue outlook of €185m to €200m, alongside a positive adjusted EBITDA and cash flow.
Iglesias concluded: “We are very encouraged by our performance in 2023 which further supports our expectation that we will generate positive adjusted EBITDA and cash flow for the full year in 2024, a year in which we expect net gaming revenue of €185m-€200m.
“In short, we expect to deliver upon our original commitment to investors to be a profitable company in the third year after de-SPAC and are more committed than ever to creating meaningful value for our shareholders.”
