Codere Online Sees Turnover Drop as Revenue Rises in Q3

Codere Online s 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.

Codere Online, which went 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 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.

Codere Online’s gaming revenue was responsible for 58% of the total third-quarter revenue and was 5% better than last year. Sports betting added 42% to the total.

In Colombia, where Codere Online has a smaller presence, its gaming operations 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.

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 received a 16% boost.

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) closed at a breakeven point, neither negative nor positive. However, it improved over the -$13.67 million 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.

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. It lost $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 a 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.