Codere Online has reported net gaming revenue of €57m for Q1. That’s a rise of 8 per cent year-on-year, driven by a 15 per cent rise in Mexico despite the decline in value of the peso. Mexican revenue would have been up by 34 per cent on a constant currency basis.
Revenue from Spain was down 2 per cent year-on-year at €21.9m, while ‘other’ revenue, which includes Argentina, Colombia and Panama was up by 10 per cent at €4.5m. EBITDA was up by 44 per cent at €1.3m and adjusted EBITDA by 6 per cent to €1.8m, but the company posted a net loss of €0.7n due to interest expenses.
The company noted that revenue from Colombia had been hit by the new 19 per cent tax on player deposits that came into force in February. It said it has put expansion in the country on hold as a result while it reconsiders its strategy. The company hopes that growth in Panama will help to compensate for the loss of Colombian revenue.
Chief financial officer Oscar Iglesias said:
Colombia remains an open question in terms of mitigating the deposit tax impact, but Panama is showing promising results following recent product enhancements.
CEO Aviv Sher said Codere Online would remain “defensive” on new market entries but would increase investment in Mexico as it sees opportunities around the 2026 World Cup, which the country will host alongside the US and Canada. He said:
For now, we’re staying cautious regarding new market entries, particularly with Colombia, given current challenges. However, as we approach the World Cup, our budget will likely become more aggressive to capitalize on the event.
For the full year, Codere Online forecasts revenue between €220m and €230m and adjusted EBITDA between €10m and €15m. As for its Nasdaq listing, it expects another delisting notice due to the delayed submission of its 2024 report. It hopes to file the report by the end of May to resolve the issue.
