odere Online reported its financial results for the second quarter 2021 on Monday, posting total net gaming revenue of €21.0 million, an increase of 43% versus €14.7 million in Q2 2020.
Mexico and Spain saw net gaming revenue of €6.4 million and €12.6 million respectively, an increase of 108% and 23% versus €3.1 million and €10.3 million in Q2.
“Our second-quarter results reflect the strong revenue trends in Spain and substantial growth achieved across Latin America,” said Moshe Edree, Managing Director of Codere Online. “This performance was driven by a 142% increase in average active players in the second quarter.”
The multinational entertainment gaming group also issued an update on its business combination, which it entered through DD3 Acquisition Corp. II, a special purpose acquisition company in June. Consummation will result in Codere Online becoming a public company.
“We are excited about the continued growth of Codere Online and look forward to building on that momentum as a publicly traded company,” said Oscar Iglesias, Chief Financial Officer. “The consummation of the business combination will happen a few months later than what we were expecting when we announced the deal, and we now expect that this will happen in Q4 2021.”
Codere Online’s updated outlook for full-year 2021 is now net gaming revenue of between €81 million and €85 million. The positive financial results experienced through the period and optimism for the remainder of the year come despite certain hindrances faced in the quarter.
“Beginning in the second quarter of 2021, we started to face the expected regulatory headwinds in the Spanish market that have limited our (and all online gaming operators) ability to offer player bonuses and other marketing activities (advertising and sponsorships),” explained Edree.
However, the company was able to adapt to the new environment, generating substantial revenue growth throughout the period. In Mexico, the company’s second-largest market, net gaming revenues more than double those in the same period 2020, partially due to the impact from Covid on sporting events said year, but also on the back of a “differentiated omnichannel” offering.
“We continue to expand our footprint across Latin America and are eager to deploy our comprehensive marketing strategy once the business combination with DD3 is completed,” further added the Managing Director. “As part of this marketing strategy, we have already strengthened our presence in Latin America through alliances with key football teams in the region, like Rayados in Mexico and River Plate in Argentina, with whom we signed sponsorship agreements in July.”
Additionally, upon completion of the migration of its Mexican online platform in early March, the company’s systems are now “better prepared” to manage the higher customer volume and will offer guests a “better, more reliable” user experience.