Date: 01.09.2023

by Mateusz Mazur

Codere Online Reports Strong Q2 2023 Financial Results and Positive Outlook

Codere Online Reports Strong Q2 2023 Financial Results and Positive Outlook iGamingExpress

Codere Online, a prominent online gaming operator in Spain and Latin America, has announced its financial results for the second quarter ending June 30, 2023. The company’s performance in Q2 2023 demonstrates substantial growth and progress compared to the same period in the previous year, underlining its position as a leader in the industry.

Impressive Revenue Growth

In Q2 2023, Codere Online reported a total revenue of €37.1 million, representing a remarkable 35% increase compared to the same period in 2022. The net gaming revenue for the same quarter reached €39.1 million, marking a substantial 34% growth year-over-year.

The company’s Mexico operations delivered particularly impressive results, with revenue totaling €16.2 million in Q2 2023, a staggering 51% increase over Q2 2022. This achievement is a significant milestone for Codere Online, as it surpassed Spain in revenue for the first time since launching operations in Mexico. In Spain, the revenue and net gaming revenue reached €17.5 million, showing a solid 24% increase compared to Q2 2022.

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Improved Profitability

Codere Online also made substantial progress in terms of profitability. In Q2 2023, the company reported a net loss of €1.7 million, a substantial improvement compared to the net loss of €6.7 million in Q2 2022. This demonstrates the company’s commitment to financial stability and growth.

Furthermore, Codere Online’s cash position remained strong, with a total cash balance of over €45 million as of June 30, 2023, providing a solid foundation for future investments and expansion.

Positive Outlook for 2023 and Beyond

The company’s leadership team expressed optimism about the future. Aviv Sher, CEO of Codere Online, highlighted the strong results, stating “We’re glad to present a strong set of second quarter results and to continue building upon the momentum from the first quarter. Our net gaming revenue grew 34% to €39 million, in line with the level from the first quarter despite the seasonal decline in sporting events. Our casino product, which has been a strategic priority for some time, contributed 54% of our revenue in the period”.

“Mexico posted impressive top line growth of 51% in the second quarter, reaching €18.0 million and surpassing Spain for the first time since launching operations in the country. In Spain, net gaming revenue grew by an equally impressive 24% to €17.5 million.”

Oscar Iglesias, CFO of Codere Online, pointed out that the company achieved strong revenue growth while reducing its Adjusted EBITDA loss by more than half to negative €4.5 million in Q2 2023: “We feel very encouraged by first half results, which continue to exceed our original expectations, and now expect to generate between €150-160 million of net gaming revenue in 2023, a 7% increase at the midpoint versus our prior outlook. In regards to Adjusted EBITDA, we expect to deliver negative €15-25 million, and believe we are well on track to deliver positive EBITDA and cash flow for the full year in 2024.”

Looking ahead, Codere Online raised its full-year 2023 net gaming revenue outlook to €150-160 million, representing a 7% increase at the midpoint compared to the previous outlook. In terms of Adjusted EBITDA, the company expects to deliver negative €15-25 million but remains confident in its plan to achieve positive EBITDA and cash flow for the full year in 2024.

Recent Developments

In addition to its financial performance, Codere Online made significant board member appointments, demonstrating its commitment to strong governance and leadership. The company also received nominations in multiple categories for the upcoming SBC Awards, showcasing its industry recognition and excellence.

However, Codere Online also reported a recent case of fraud in Spain, where a customer made unauthorized withdrawals totaling €0.5 million from a third-party retail gaming hall. The company is actively investigating the incident and pursuing the recovery of the misappropriated funds.

Codere Online’s strong financial results in Q2 2023, along with its positive outlook and commitment to integrity and growth, position the company as a formidable player in the online gaming industry. With continued focus on innovation and customer satisfaction, Codere Online is poised for a successful future in Spain and Latin America.

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