Date: 29.02.2024

by Mateusz Mazur

Codere Online Achieves Record Revenue Growth in Q4 2023

Codere Online, a prominent online gaming operator in Spain and Latin America, has reported a significant revenue increase of 32% in the fourth quarter of 2023, reaching €46.9m.

This growth is attributed to strong performances in key markets, with Mexico’s revenue soaring by 54% and Spain’s by 17% compared to the same period in 2022. The company’s strategic focus on these regions, coupled with effective marketing investments, has led to a notable expansion of its active customer base and an increase in customer spend.

Strategic Wins in Mexico and Spain

The company’s CEO, Aviv Sher, highlighted the impressive 33% growth in net gaming revenue, stating “In Q4 2023 we delivered an impressive 33 per cent growth in net gaming revenue to €50m, 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.”

Codere Online’s strategic initiatives have successfully expanded its active customer base by over 15% in both Mexico and Spain. This growth underscores the company’s ability to attract and retain customers in these competitive markets.

Financial Outlook and Commitment to Profitability

Oscar Iglesias, CFO of Codere Online, expressed optimism about the company’s financial trajectory, stating “Our fourth quarter results have allowed us to reach nearly €172m of net gaming revenue for the full year, 19 percent above the midpoint of the initial €140-150 mm 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 €12mm in Adjusted EBITDA versus the initial outlook of negative €20 to 30m.”

The company’s efficient marketing strategy and operational performance have also led to a better-than-expected Adjusted EBITDA. Looking ahead to 2024, Codere Online anticipates net gaming revenue between €185m and €200m, with expectations to achieve positive Adjusted EBITDA and cash flow.

Our Comment on the Article

Codere Online’s remarkable revenue growth in Q4 2023 reflects the company’s strong market position and effective growth strategies in Spain and Latin America. The record-breaking revenue and expanded customer base highlight the company’s ability to navigate competitive landscapes and capitalize on market opportunities.

With a positive financial outlook for 2024, Codere Online is well-positioned to continue its growth trajectory and fulfill its commitment to profitability, underscoring its potential to create significant value for shareholders in the evolving online gaming industry.