Codere Online reports revenue up 57% in Q1, driven by growth in Mexico and Spain

Online gaming operator Codere Online has reported total revenue of €37.6 million ($40.9 million) for the first quarter ended of 2023, a 57% increase from the same period in 2022. 

According to the company's financials, net gaming revenue also increased by 55% to €39.5 million ($42.9 million) in Q1, compared to the previous year. The company's Mexico and Spain markets were said to be the key drivers of growth, with net gaming revenue in Mexico increasing by 75% and net gaming revenue in Spain increasing by 40% compared to Q1 2022. 

Codere Online's total cash position as of March 31 was over €49 million ($53.3 million), which, according to the company, is a promising sign for its future. 

Aviv Sher, CEO of Codere Online, said: "We are off to a very strong start in 2023, with net gaming revenue growing by 55% in the first quarter to nearly €40 million. The significant investment that we made in the prior quarter around the World Cup allowed us to meaningfully grow our customer base versus pre-World Cup levels."

"These customers remained engaged throughout the first quarter, in particular in Spain and Mexico. Also, our cross-sell efforts between sports betting and casino played an important role in that engagement, with the latter contributing 53% of our net gaming revenue."

Furthermore, the CFO of Codere Online, Oscar Iglesias, stated: "We are excited to be presenting both strong top-line growth in the quarter and, more importantly, a significant improvement in Adjusted EBITDA. This was partially driven by the lower level of marketing spend in the quarter in furtherance of our plans to deliver sustainable growth for our shareholders."

"For the full year, we continue to expect to generate between €140-150 million of net gaming revenue and Adjusted EBITDA of negative €20-30 million, although given our strong performance in Q1, we now expect to be at the higher end of the range and are well on track to deliver positive EBITDA and cash flow for the full year in 2024."

In addition to these financial results, Codere Online also announced some recent events. The company appointed Deborah Guivisdalsky as COO, replacing Aviv Sher after his appointment as CEO in March.

Guivisdalsky previously served as the Head of CRM/VIP of Codere Online, overseeing all the day-to-day operations across the different teams in Malta such as Fraud, Payments, VIP, and CRM. Prior to Codere Online, Guivisdalsky worked at Ladbrokes as Head of VIP in Gibraltar.

Finally, Codere Online announced that it has been awarded a license in the Province of Mendoza, Argentina, where it expects to begin operations in 2023, and continues to pursue a license in the Province of Buenos Aires. The company also formally withdrew from the Province of Córdoba tender process due to "a lack of a viable tax structure."