Codere Online continues to rebalance itself amid changes in different markets where it operates, and it seems to be making progress. The latest financial results, covering the third quarter of 2023, show promising results, indicating that the multinational gambling and betting company is on the right track.
The Codere sign on top of its offices. Codere Online continues to rebound, enjoying strong growth in 2023. (Image: Europa Press)
Codere Online, which went public on NASDAQ two years ago, reported net gaming revenue (NGR) of $46.97 million for the third quarter. This marks a 41% year-on-year increase for the company.
The growth was mostly attributable to improvements in Mexico and Codere’s home country of Spain. Mexico saw a 63% improvement, achieving $22.56 million, and Spain’s NGR increased by 27% to $20.17 million.
Things weren’t so good in Colombia, however, where Codere Online has a smaller presence. Its gaming ops in the country only delivered $1.6 million, a year-on-year decline of 5%.
The company didn’t provide specific figures for Argentina or Panama. They were included in the category of “other,” which was worth $977K in NGR.
Casino Trumps Sports Betting
Leading the way for Codere Online’s gaming revenue was its casino activity. This was responsible for 58% of the total third-quarter revenue and was 5% better than last year. Not too far behind, sports betting added 42% to the total.
Coinciding with the increased NGR in its two biggest markets was an increase in the operator’s number of players. Mexico reported 39% more average monthly players than the previous month, while Spain received a 16% boost.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) closed at a breakeven point, neither negative nor positive. However, it was an improvement over the -$13.67 million in adjusted EBITDA a year ago.
This was made possible by controlled spending, including in Codere Online’s marketing. The company spent $21.04 million on marketing in the quarter, whereas it had spent $25.96 million a year earlier.
Reaching Goals
The across-the-board improvements left Codere executives more optimistic about the future. They believe that the NGR for the year could reach $179.4 million compared to the $174.4 million the company previously forecast.
Adjusted EBITDA could be around -$10.9 million. In its last update, Codere Online said it could be as low as -$16.35 million.
If it can stay on target, the company is going to deliver superior results. It had a loss of $25.42 million in 2021 and $54.7 million in 2022; achieving its adjusted EBITDA goal means it will have recovered by 70% compared to last year.
Through September, Codere Online has reported total NGR of $130.05 million, a 43% year-on-year improvement. Adjusted EBITDA is -$8.13 million, a significant 79.2% jump.
As a result, and provided there are no surprises, Codere Online expects to “generate positive Adjusted EBITDA and cash flow for the full year in 2024,” according to CFO Oscar Iglesias.
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