Codere Online reports growth in Mexico, holds back on Brazil expansion plans

Codere Online has indicated it is not preparing to enter Brazil’s regulated betting market in the near future, citing the significant investment required to compete there. Speaking during the company’s first-half 2025 earnings call on Thursday, Chief Executive Officer Aviv Sher told analysts that replicating its business model in Brazil would be costly despite having successfully expanded in other markets.

“We took some of our experience in Spain and took it to Mexico, so we have already proven we are able to replicate our strategy and grow a market,” Sher said. “To replicate our model in Brazil, we would need a lot of money.”

Codere Online’s strategy has been to adapt its Spanish market model to other jurisdictions. While that approach continues to show results in Mexico, Sher noted that a similar rollout in Brazil would require resources the company is not prepared to commit at this time.

Mexico was the company’s best-performing market during the first half of the year. Net gaming revenue from the country rose 9% year-on-year to €59.5 million ($68.74 million), supported by higher player activity than usual in what is typically a slower period. Sher said Mexico’s active customer base increased by 36% in the second quarter compared to the same period in 2024.

The company’s Chief Financial Officer, Oscar Iglesias, acknowledged that the 19% devaluation of the Mexican peso impacted results, but said the operator expects the currency to stabilize sooner than initially forecast. He added that Codere Online anticipates a “strong” EBITDA performance in the second half of the year.

Overall, Codere Online reported group net gaming revenue of €111.8 million ($129.16 million) for the first six months of 2025, up 4% from €107.4 million ($124 million) in the same period last year. This includes 61% from iGaming and 39% from sports betting. Second-quarter net gaming revenue was flat at €54.8 million ($63.31 million).

In Spain, revenue remained unchanged at €44 million ($50.83 million) for the half-year period. Sher attributed this to intense competition following the reintroduction of welcome bonuses in 2024, and said the company had taken a more selective approach to promotions in order to attract higher-value customers while reducing acquisition costs.

Operations in Colombia remain challenging due to the recently implemented VAT, which Iglesias said has raised the tax burden to almost 50% of revenue. As a result, the company has scaled back its operations there to the minimum level necessary to maintain break-even. Losses in Colombia have been partly offset by performance in Panama.

Cashback bonuses, similar to those used by other operators such as Stake, have been trialed in Colombia, but Sher said the impact on the top line has been substantial.

Across its operations, Codere Online recorded 277,000 new customer registrations during the second quarter, with a 28% conversion rate and an average cost per acquisition of €218 ($251.85). The number of monthly active players grew 7% year-on-year to approximately 155,000.

By the end of June, the company had €40.7 million ($47 million) in cash, up from €35.3 million ($40.78 million) at the start of the year. Iglesias said the company is evaluating options for expanding further in Mexico or exploring other markets in the region.

Codere Online expects net gaming revenue to reach between €220 million ($254.16 million) and €230 million ($265.72 million) and adjusted EBITDA to come in between €10 million ($11.55 million) and €15 million ($17.33 million), for the full year.