Codere Online’s recently published financial report for the first quarter of 2023 reveals substantial expansion and a promising forecast for the remainder of the year. The firm experienced a 57% surge in overall earnings, attaining €37.6 million, contrasted with the corresponding timeframe in the previous year. This remarkable accomplishment was propelled by an exceptional 55% increase in net gaming revenue, reaching €39.5 million.
Mexico stood out as a top achiever, exhibiting a 75% leap in net gaming revenue, hitting €17.6 million. This triumph can be partially credited to Codere Online’s calculated expenditures related to the World Cup, which considerably broadened their clientele. The organization also emphasized the effectiveness of its cross-promotion strategies between sports wagering and casino offerings, with the latter representing 53% of the total net gaming revenue.
Despite a net deficit of €1.3 million for Q1 2023, this signifies a considerable enhancement compared to the €10.1 million loss documented in the parallel period last year. Moreover, Codere Online projects attaining positive EBITDA by the conclusion of the fiscal year.
Beyond the robust financial performance, Codere Online has undergone managerial adjustments. Aviv Sher has assumed the role of CEO and has promptly executed a sequence of strategic actions, encompassing vital designations such as Deborah Guivisdalsky as Chief Operating Officer. These modifications, combined with the company’s venture into fresh territories like the Mendoza region in Argentina, indicate a phase of vigorous growth and evolution for Codere Online.
Prior to his role at Codere Online, Guivisdalsky cultivated his skills as a VIP Manager at Ladbrokes in Gibraltar.
Oscar Iglesias, the Chief Financial Officer of Codere Online, conveyed his contentment with the company’s robust revenue expansion for the quarter. He was especially heartened by the notable enhancement in adjusted EBITDA, emphasizing their calculated decrease in marketing expenditures as a contributing element. This action, he stressed, is a component of a broader strategy to propel sustainable growth and generate value for their stakeholders.
Looking forward, Codere Online maintains confidence in attaining its net gaming revenue objective of €140-150 million for the year. While the adjusted EBITDA target range persists at -€20 to -€30 million, the company’s strong first-quarter results have bolstered their positive outlook. They now project reaching the upper limit of that range and are well-situated to achieve favorable EBITDA and cash flow for the entirety of 2024.
