Codere Online has unveiled its preliminary financial results for the third quarter of 2024, showcasing impressive growth across its primary markets. With significant strides in both Mexico and Spain, the company continues to cement its position as a leader in the online gaming sector.

Codere Online Reports Robust Growth in Q3 2024 Financial Results

Strong Net Gaming Revenue Growth of 20%

During the third quarter of 2024, Codere Online reported total net gaming revenue (NGR) of €51.7 million ($54.6 million). This represents a remarkable 20% year-on-year increase compared to the same period in 2023. The company attributed this growth to its robust operational strategies and expanding player base, especially in its core markets of Mexico and Spain.

Mexico: A Key Growth Driver with 27% Revenue Increase

Mexico emerged as a standout performer for Codere Online. The region reported net gaming revenue of €26.7 million, marking a 27% increase compared to Q3 2023. This impressive performance was achieved despite the Mexican peso devaluation that followed the country’s presidential election in June 2024.

In constant currency terms, the revenue growth in Mexico would have been an even more substantial 43%, highlighting the market’s underlying strength. The growth in Mexico was further bolstered by an increase in monthly active players, which rose by 23% year-on-year.

Spain: A Steady Contributor with 11% Growth

Spain also delivered solid results, contributing €20.9 million in net gaming revenue, an 11% year-on-year increase. The growth in Spain underscores the company’s ability to maintain a strong presence in this competitive market. Codere Online experienced an 18% increase in monthly active players in Spain, demonstrating its successful engagement strategies and market penetration.

Consistent Positive Financial Performance

Codere Online achieved €1.5 million in adjusted EBITDA for Q3 2024, marking its third consecutive quarter of positive financial performance. This milestone is a testament to the company’s disciplined cost management and operational efficiency. As of 30 September 2024, Codere Online’s cash position stood at €44 million, providing a solid foundation for continued growth and investment in strategic initiatives.

Expanding Player Base Drives Performance

The company’s average monthly active players reached 143,400 during the quarter, reflecting a 15% increase compared to Q3 2023. This growth was largely driven by the success in Mexico and Spain, where player numbers rose by 23% and 18%, respectively. Codere Online’s ability to attract and retain players across its platforms is a key driver of its sustained revenue growth.

Challenges and Nasdaq Delisting Notice

Despite the strong financial results, the third quarter was not without its challenges. On 12 November 2024, Codere Online received a delisting notice from Nasdaq due to a delay in filing its Form 20-F for the year ended 31 December 2023.

In response, Codere Online has requested a hearing scheduled for 16 January 2025 to address the issue. The company remains committed to completing the required filings and resolving the matter promptly.

Optimistic Full-Year Outlook for 2024

Codere Online’s management remains optimistic about the company’s full-year performance. CEO Aviv Sher emphasized the strength of the Q3 results, while CFO Oscar Iglesias highlighted the company’s confidence in achieving the upper end of its 2024 guidance.

The company expects to close the year with net gaming revenue between €205 million and €215 million, alongside a positive adjusted EBITDA ranging from €2.5 million to €7.5 million.

Strategic Focus on Growth and Innovation

Codere Online is focused on enhancing its digital platforms and delivering superior user experiences to drive further growth. Investments in technology and innovation, coupled with targeted marketing strategies, are expected to play a pivotal role in the company’s future performance.

The company’s strategic initiatives aim to strengthen its competitive edge in existing markets while exploring opportunities in new regions.

Conclusion: The Financial Results

Codere Online’s Q3 2024 financial results underscore its resilience and growth potential in the dynamic online gaming industry. With strong performances in Mexico and Spain, an expanding player base, and a solid financial foundation, the company is well-positioned to achieve its long-term goals.

FAQs About Codere Online’s Q3 2024 Financial Results

1. What were Codere Online’s total net gaming revenues for Q3 2024?

Codere Online reported total net gaming revenues of €51.7 million ($54.6 million) for the third quarter of 2024, marking a 20% increase compared to the same period in 2023.

2. Which markets contributed the most to Codere Online’s growth in Q3 2024?

The company’s primary markets, Mexico and Spain, were the main contributors. Mexico achieved a 27% year-on-year increase in net gaming revenue, while Spain recorded an 11% increase.

3. How did Codere Online perform in Mexico during Q3 2024?

Mexico generated €26.7 million in net gaming revenue, reflecting a 27% year-on-year growth. In constant currency terms, revenue growth would have been even higher at 43%, despite challenges such as the devaluation of the Mexican peso.

4. What was Codere Online’s performance in Spain?

Spain reported €20.9 million in net gaming revenue for Q3 2024, an 11% increase from the previous year. This growth was supported by an 18% increase in monthly active players in the region.

5. What is Codere Online’s adjusted EBITDA for Q3 2024?

The company recorded an adjusted EBITDA of €1.5 million, marking its third consecutive quarter of positive financial performance.

6. How much cash did Codere Online have at the end of Q3 2024?

As of 30 September 2024, Codere Online’s cash position stood at €44 million, ensuring a strong financial foundation for future growth.

7. How has Codere Online’s player base grown in Q3 2024?

The company’s average monthly active players increased to 143,400, a 15% rise compared to Q3 2023. Notably, player growth was strongest in Mexico (23%) and Spain (18%).

8. Did Codere Online face any challenges during Q3 2024?

Yes, the company received a delisting notice from Nasdaq on 12 November 2024 due to a delayed filing of its Form 20-F for the year ending 31 December 2023. The company has requested a hearing scheduled for 16 January 2025 to address the issue.

9. What is Codere Online’s outlook for the full year 2024?

The company is optimistic about finishing the year within the upper range of its guidance. It expects net gaming revenue between €205 million and €215 million and a positive adjusted EBITDA of €2.5 million to €7.5 million.

10. What are Codere Online’s strategic priorities moving forward?

The company is committed to driving growth through innovation, market expansion, and customer engagement initiatives. It also aims to strengthen its competitive position while ensuring long-term financial stability.