Codere Online growth exceeds expectations in Q1

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Codere Online has reported gains in Spain and Mexico in the first quarter of 2024, as total net gaming revenue rose by over 30 per cent year-over-year.

CEO Aviv Sher called the Q1 performance a “strong start” to the year following targeted marketing efforts in both Spain and Mexico, while CFO Oscar Iglesias stated that the company’s top line growth during the quarter exceeded expectations.

Publishing its Q1 results, Codere Online declared a total revenue of €50.4m and NGR of €53m, up 34 per cent in comparison to the same period the previous year (Q1 2023: €39.5m), as growth occurred across the board.

Average monthly active players during the period increased by 16 per cent YoY as well to 143,200 (2023: 123,900), driven by targeted marketing efforts in both Spain and Mexico.

Adjusted EBITDA for the quarter stood at €1.7m, an improvement on the €3.1m loss reported during the same period last year.

Per region, Mexico revenue grew the most by 51 per cent YoY to €26.6m (2023: €18.4m), with its average monthly active players rising as well by 26 per cent to 62,500 (2023: 49,600).

Spain revenue increased by 21 per cent YoY to €22.3m (2023: €18.4m), with its average monthly active players growing by 24 per cent to 50,000 (2023: 40,200).

Other revenue came in at €4.1m, up 17 per cent YoY (2023: €3.5m). However, its average monthly active players declined by 11 per cent to 30,600 (2023: 34,200).

Reflecting on the results, Sher said: “We are off to a strong start in 2024, with net gaming revenue of €53m in the first quarter, 34 per cent above that of last year and once again our highest ever quarterly figure. 

“Our focus on Mexico and Spain continues to yield impressive results, with net gaming revenue in Mexico growing by 51 per cent in the first quarter to nearly €27m. In Spain, meanwhile, net gaming revenue grew by 21 per cent to over €22m.

“In both markets, our targeted marketing efforts allowed us to grow our active customer base by c. 25 per cent as a result of the acquisition of higher quality customers (i.e. lower churn) but also with an increased spend per active.”

Codere Online’s net income for Q1 came in at €3.4m, an improvement in comparison to the net loss of €1.3m reported during the same period in 2023. 

As of March 31, the total cash position for the company was €38.5m.

In response to the opening quarter of the year, Codere Online has increased its full year 2024 NGR outlook to the range of €195m to €210m, in addition to reiterating its plan to be adjusted EBITDA and cash flow positive for FY24.

Iglesias stated: “Once again, top line growth exceeded our expectations in the first quarter, with Mexico continuing to put distance on Spain as our largest market by revenue. 

“We are particularly excited, however, to see Mexico now also contributing positive adjusted EBITDA for the first time. This, together with a strong performance by Spain, allowed us to generate €1.7m in total adjusted EBITDA in the first quarter, which represents a significant step towards achieving our full year profitability targets.

“On the back of this strong performance in the first quarter and based on recent trading activity, we now expect to generate between €195-210m of net gaming revenue in 2024, and reaffirm that we expect to generate positive adjusted EBITDA and cash flow for the full year in 2024.”