Codere Online has reported revenue growth across all its regional segments in the third quarter of 2024, with total net gaming revenue (NGR) for the operator rising by 20% compared to the same period the previous year.
The company also provided an update on its delisting notice from the Nasdaq Stock Market received in November, noting that its request for a hearing to appeal the delisting determination was accepted and has been scheduled for January next year.
As for its 2024 outlook, CFO Oscar Iglesias stated that Codere Online expects to “finish the year in the upper part” of its net gaming revenue and adjusted EBITDA guidance range of €205m to €215m and positive €2.5m to €7.5m respectively.
Mexico and Spain drive Q3 revenue increase
Publishing its Q3 financials, Codere Online reported a 20% increase in NGR to €51.7m (Q3 2023: €43.2m) as revenue in both Spain and Mexico grew in comparison to the same quarter last year. Per vertical, 58% of the total NGR came from casino operations, while 42% came from sports betting.
Average monthly active players also increased when compared to Q3 2023, growing by 15% year-over-year to approximately 143,400 (2023: around 124,500), while average monthly spend per active increased by 4% YoY to €120.
The operator noted as well that it had approximately 232,000 new customer registrations during the quarter, with 67,000 first-time deposits, a 29% conversion rate and a cost per acquisition of €250.
In Spain, NGR increased by 11% YoY to €20.9m (2023: €18.9m), while average monthly active players rose by 18% to approximately 48,500 (2023: around 41,000).
For Mexico, NGR grew by 27% compared to the same period the previous year to €26.7m (2023: €21m), while average monthly active players increased by 23% to around 63,700 (2023: approximately 51,800).
Aviv Sher, CEO of Codere Online, noted that growth occurred in Mexico despite foreign exchange headwinds in the region following the Mexican presidential election in June.
Sher commented: “Our company delivered another quarter of strong results, with net gaming revenue of €51.7m, representing a 20% increase over the third quarter of 2023.
“In Mexico, net gaming revenue reached €26.7m, 27% above the prior year period, despite the significant devaluation of the Mexican peso following the presidential election in June. In constant currency terms, our net gaming revenue in the country would have grown by 43%.
“Meanwhile, performance in Spain remained strong, with net gaming revenue of €20.9 million in the quarter, 11% above last year.”
Other NGR increased by 24% YoY to €4.1m (2023: €3.3m), but average monthly active players declined by 2% to approximately 31,200 (2023: around 31,700).
Delisting notice from Nasdaq
Codere Online also provided an update on the delisting notice it had received from Nasdaq.
On 12 November, Codere Online received a letter from Nasdaq informing the company of its intention to delist its securities from the Nasdaq Stock Market as it had not yet filed its Form 20-F for the year ended 31 December 2023.
On 18 November, the operator formally requested a hearing from Nasdaq to appeal the delisting determination, which was accepted on 25 November. The hearing has been scheduled for 16 January 2025.
The company added that it “continues to work diligently to complete and file its Form 20-F for 2023 as soon as possible”.
2024 outlook
Codere Online stated that year-to-date in 2024, its net income – excluding the non-cash variation in fair value of public warrants – stands at €2.8m (2023: €2.8m net loss), while total cash position stood at approximately €44m.
The company also noted that in Q3, it achieved a positive adjusted EBITDA for the third consecutive quarter, reaching €1.5m following “higher revenues together with a lower relative level of marketing investment”. The operator added that it is “on track” to meet its 2024 profitability target.
As previously mentioned, Iglesias said that the company expects to “finish the year in the upper part” of its net gaming revenue guidance range of €205m to €215m and of its adjusted EBITDA guidance range of positive €2.5m to €7.5m.
The CFO stated: “Beyond the significant top-line growth, we also generated €1.5m of adjusted EBITDA and €3.5m of cash in the quarter. This is now the third consecutive quarter of positive adjusted EBITDA and brings the year-to-date total to €4.5m.
“With regards to our existing outlook for 2024, we expect to finish the year in the upper part of the range with respect to both our net gaming revenue and adjusted EBITDA guidance.”
