Codere Online sees strong start with 34% increase in Q1 net gaming revenue, increases annual outlook for 2024

Multinational gaming company Codere Online reported revenue of €50.4 million ($54.3 million) in the first quarter of 2024, while net gaming revenue reached the highest-ever quarterly figure at €53 million ($57.5 million), up 34% from Q1 2024.

Another highlight of the period, Codere reported that its average monthly active players increased by 16% year-over-year to 143,200, driven by targeted marketing efforts in Spain and Mexico. 

Codere Online's net income for Q1 came in at €3.4 million ($3.6 million), an improvement compared to the net loss of €1.3 million reported during the same period in 2023. Meanwhile, Adjusted EBITDA for the quarter stood at €1.7 million, an improvement on the €3.1 million loss reported during the same period last year.

Divided by geographical region, overall revenue from Mexico reached €23.8 million ($25.8 million) in Q1 2024 and net gaming revenue stood at €26.6 million ($28.8 million) in the period, 51% above Q1 2023. The region's average monthly active players rose by 26% to 62,500.

Revenue and net gaming revenue from Spain reached €22.3 million ($24.2 million) during the quarter, marking an increase of 21% above Q1 2024. The average monthly active players grew by 24% to 50,000.

Other revenue came in at €4.1 million, up 17% from the same period last year. However, its average monthly active players declined by 11% to 30,600. 

Reflecting on the results, Aviv Sher, CEO of Codere Online, commented: "We are off to a strong start in 2024, with net gaming revenue of €53 million in the first quarter, 34% above that of last year and once again our highest ever quarterly figure. Our focus on Mexico and Spain continues to yield impressive results, with net gaming revenue in Mexico growing by 51% in the first quarter to nearly €27 million."

"In Spain, meanwhile, net gaming revenue grew by 21% to over €22 million. In both markets, our targeted marketing efforts allowed us to grow our active customer base by c. 25% as a result of the acquisition of higher quality customers (i.e. lower churn) but also with an increased spend per active," he added.

Aviv Sher

For his part, Oscar Iglesias, CFO of Codere Online, stated: "Once again, top-line growth exceeded our expectations in the first quarter, with Mexico continuing to put distance on Spain as our largest market by revenue. We are particularly excited, however, to see Mexico now also contributing positive Adjusted EBITDA for the first time.

This, together with a strong performance by Spain, allowed the company to generate €1.7 million in total Adjusted EBITDA in the first quarter, which represents "a significant step" towards achieving Codere Online's full-year profitability targets, said Iglesias.

Oscar Iglesias

The company said its total cash position was €38.5 million ($41.8 million) as of March 31, 2024. It also increased its net gaming revenue outlook of €185-200 million ($200- $217 million) to €195-210 million ($211-217 million) for the full year 2024 and anticipates positive Adjusted EBITDA and cash flow. 

In recent events, Codere obtained final regulatory authorization and expects to launch operations soon in the Argentinean province of Mendoza, thus increasing its presence in the country. The company aims to continue to pursue a license in the province of Buenos Aires.

Moreover, in March, Codere Online agreed to extend its relationship with the Monterrey Rayados Football Club as its Official Betting Partner for the next four seasons. With this renewal, the company also became the Main Sponsor of the women's team, Rayadas.